Question:

In the SCOPE OF WORK RULE, one of the two tests regarding the acceptability of an appraiser’s scope of work is what the appraiser’s peers would do. There are many appraisers that do things differently, so how would I know what they would do in an assignment?

Response:

The SCOPE OF WORK RULE states that the acceptability of an appraiser’s work is judged based on two tests:

• the expectations of parties who are regularly intended users for similar assignments; and

• what an appraiser’s peers’ actions would be in performing the same or a similar assignment.

The first step in knowing what your peers would do is to identify your peers. In USPAP, “appraiser’s peers” has a specific meaning.  It is defined as:

other appraisers who have expertise and competency in a similar type of assignment.

This definition illustrates that an appraiser’s peers are assignment specific and may change from assignment to assignment.  This is because appraisers have varying levels of expertise and competency in specific property types, geographic locations, etc.  For more information on appraiser’s peers, please see Advisory Opinion 29, An Acceptable Scope of Work.

Knowledge about what an appraiser’s peers would do in a similar assignment comes through being a participant in the profession. Typical forums that allow appraisal professionals to share information about practice include appraisal journals and publications, professional meetings and conferences, education though courses and seminars, and appraisal discussion groups (both in-person and through the web).