Reporting (AO-32)

Standards Rules 6-8 and 6-9 address the requirements for reporting mass appraisal results for real property and personal property.  The Mass Appraisal Report must clearly communicate the elements, results, opinions, and value conclusions of the mass appraisal.  In mass appraisals for ad valorem taxation, local statutes may prescribe additional reporting requirements and procedures for the delivery of the assignment results.

In mass appraisal, the value opinion for each property is developed using the standard methods applied in the mass appraisal model for a universe of properties.  There may be many mass appraisal models used to value an entire universe of properties.  An individual property record or worksheet may describe the valuation of the specific property after the application of the mass appraisal model.  A written report of the mass appraisal as described in Standards Rule 6-8 is not provided for each individual property.  To understand the individual property result developed in a mass appraisal requires the examination of all the information and analysis required by Standards Rule 6-8.

STANDARDS 2 & 8 address the requirements for reporting of appraisal results for real property and personal property (respectively).  The written report must be presented in a Self-Contained Appraisal Report, Summary Appraisal Report, or Restricted Use Appraisal Report.

An appraiser may be asked to communicate the assignment results for a single property that was appraised as part of a mass appraisal assignment.  USPAP does not address this specific circumstance.  The reporting requirements of STANDARD 2 apply to appraisal assignments developed under STANDARD 1 and do not apply to mass appraisal assignments prepared under STANDARD 6.  However, the second sentence of the PREAMBLE states: It is essential that appraisers develop and communicate their analyses, opinions, and conclusions to intended users of their services in a manner that is meaningful and not misleading.  Additionally, the ETHICS RULE states: An appraiser must not communicate assignment results in a misleading or fraudulent manner.  Therefore, if an appraiser communicates mass appraisal results for a single property, the communication must be meaningful and must not be misleading.

In assignments for ad valorem taxation, public policy may direct property owner notification of the property values rendered as a result of an appraisal or mass appraisal.  Notifications are commonly required within the jurisdiction to meet due process requirements.  These property owner notifications are not “reports” as defined in USPAP.  Further, a party receiving a notification in order to satisfy disclosure requirements does not become an intended user unless the appraiser identifies such party as an intended user as part of the assignment.