Question:

Does USPAP permit appraisers to use terms that reflect a scale, such as “high,” “low,” “good,” or the like?

Response:

Yes. USPAP does not prohibit the use of subjective phrases in an appraisal report. However, the Conduct section of the ETHICS RULE states:

An appraiser must not use or rely on unsupported conclusions relating to characteristics such as race, color, religion, national origin, gender, marital status, familial status, age, receipt of public assistance income, handicap, or an unsupported conclusion that homogeneity of such characteristics is necessary to maximize value.

Appraisers should exercise care to avoid comments in a report that may be perceived as illegally biased or discriminatory. Factual descriptions, rather than subjective phrases, allow the user of a report to draw his or her own conclusions.  The use of terms that reflect a scale such as “high,” “low,” “good,” “fair,” “poor,” “strong,” “weak,” “rapid,” “slow,” “average” or the like should also provide contextual information that properly explains the frame of reference and relative position of the subject property on the scale.

For example, if absorption is stated as “rapid,” the context of the rating should also be cited (“rapid” relative to what?). Additional guidance is provided in Advisory Opinion 16, Fair Housing Laws and Appraisal Report Content.