Uniform Standards of Professional Appraisal Practice (USPAP) Practice Exam

What is true about a Recertification of Value?

1. It modifies the effective date of the value opinion

2. It is equivalent to a new appraisal

3. It does not change the effective date of the value opinion

4. It requires a new inspection of the property

The correct answer is: It does not change the effective date of the value opinion

A Recertification of Value is a process that allows an appraiser to confirm or update a previous appraisal without creating a new appraisal report. One of the key characteristics of this process is that it does not alter the effective date of the value opinion established in the original appraisal. The effective date reflects the conditions of the property and the market as of that specific time, and a recertification essentially verifies that the original value is still accurate as of a later date. This practice is especially useful in situations where a client needs assurance regarding the continued validity of the original appraisal’s value, perhaps for lending or investment purposes. It maintains the integrity of the original appraisal while providing confidence that the valuation still holds true without necessitating a complete new valuation process or inspection. In contrast, other options might suggest significant changes or processes that differ from the fundamental purpose of a Recertification of Value, such as modifying the effective date or requiring inspections akin to those done for a new appraisal.