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USPAP and all information necessary comes right out of SR1-4. But now is the time to learn what “…all information necessary to credible assignment results…” really means. The USPAP document itself does a poor job of explaining it. Our 7-hour USPAP update classes do not even begin to explain this topic. And that’s a shame. If more appraisers were familiar with it, we would likely have less trouble with hollow charges of racism Washington, D.C. so erroneously levels against appraisers.
USPAP and all information necessary means just that. There is nothing hidden here. Yes, it means all of the sales and listing data available to the appraiser/analyst. But that’s not all it means. “All information necessary for credible assignment results…” also means all of the cost and depreciation data necessary. And this does not refer to merely listing these data. Primarily it refers to analyzing these data. And to analyze those data means to engage in all of the protocols of the Cost Approach. Engage in them until you are as comfortable with their indication of value as you are with the indication of value from the sales comparison approach. But it means more, too.
USPAP and all information necessary for credible assignment results means the property’s complete analysis. There are three analytical models, which means we analyze the the subject via the income approach, too. But my subject is not rented, you exclaim! So?! You can stick a “House For Lease” sign in the front yard, right? There are similar houses for lease in similar neighborhoods, are there not? You know there are! Your MLS tells you that! So analyze those houses and then extrapolate those rental and GRM data to the subject.
We avoid bias when we analyze all the data. So, analyze all the data!