Insights & Education
Educational articles on appraisal practice, fair market value, USPAP, and valuation methodology, written by Stephanie Daugherty for the International Society of Appraisers.
Whenever an appraiser cites an auction record as a comparable sale, it is essential to include the buyer’s premium in the analysis. Fair Market Value (FMV) represents the price a willing buyer would pay a willing seller under typical market conditions, and…
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There are several dates associated with USPAP course materials, including USPAP itself, the Guidance and Reference Manual, and the Student Manual, and each date serves a different purpose. In 2024, in response to the need for new guidance related to the USPAP…
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Although LOV technically requires completed repairs to be credible, insurers often ask for anticipated loss-on-value before proceeding with restoration. In these cases, the appraiser must incorporate a hypothetical condition and extraordinary assumption(s). The 2024 Edition of the Uniform Standards of Professional Appraisal…
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Diminution of value, often called loss-on-value (LOV) or loss-of-value (LOV), is a deceptively simple concept with complex real-world application. At its core, LOV represents how much an item’s value decreases because of damage and subsequent repair. It is expressed as:
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When calculating a blockage discount, the appraiser must carefully evaluate a number of interrelated factors and considerations.
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When an item is damaged or otherwise no longer usable in its original form, it often retains some residual value based on its materials or components. This residual worth is referred to as salvage value. Salvage value is defined in the 2021…
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What is Blockage?Blockage is a discount applied to the value of items to reflect the negative impact on value caused by the sudden offering of a large number of identical, or very similar, items at the same time. In such a case,…
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Question: I am revising an estate tax appraisal where the estate attorney has chosen to use the 6 month post date of death as the effective date. Is there any specific wording I need to include about this date being used?
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A common but important question is: Where should an appraiser sign their report? While it may seem like a small detail, signing the report correctly is essential for compliance with both USPAP and ISA Appraisal Report Writing Standards.
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Question:Is it possible to produce a Restricted Appraisal Report for multiple parties and still remain USPAP compliant?
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Fair market value (FMV) is foundational in Canadian personal property appraisals prepared for charitable donations, estate administration, and cultural property certification applications. While the term is widely used, determining FMV in these contexts requires careful adherence to legal precedent, administrative guidance from…
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Determining fair market value (FMV) can be a complex process, as it is highly dependent on the specific facts and circumstances surrounding each appraisal assignment. Appraisers must exercise professional judgment, supported by credible data and sound methodology, to determine FMV. This often…
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