USPAP Q&A Clarifies Personal Inspection Definition for Appraisers: What You Need to Know
This blog was updated on January 8, 2025, to reflect additional clarifications on USPAP's 2024 changes regarding personal inspections.
Key Changes in USPAP's Personal Inspection Requirements
When the 2024 USPAP updates first came out, there was a lot of speculation about what the new rules around personal inspections actually meant. Many appraisers initially thought that every new assignment would require a new on-site inspection, even if they had inspected the property recently for another client. However, as more information and guidance emerged, it became clear that the rules weren’t quite that rigid.
What Was Originally Thought vs. What We Now Know
Original Assumption: Appraisers were lead to understand that the updated rules mandated a new on-site inspection for every single assignment, regardless of prior inspections or data.
What We Now Know: The revised definition clarifies that appraisers only need to disclose whether an inspection was done as part of the current assignment’s scope of work. Prior inspection data can still be reused if it aligns with the new scope and the client agrees to the same effective date.
Original Assumption: Comparable sales would also require new inspections for every assignment to comply with USPAP.
What We Now Know: USPAP doesn’t require reinspecting comparables for every assignment. The focus is on whether the existing data remains credible and relevant. This however may be a client-specific assignment condition.
Reusing Prior Inspection Data: What’s Allowed by USPAP?
While you can reuse prior inspection data, certain conditions need to be met:
Scope of Work Must Match: The prior inspection has to align with the new assignment’s scope of work. If a revisit won’t add anything new or meaningful, a new inspection may not be necessary.
Client Approval is Key: The client needs to agree to use the same effective date as the prior inspection. This isn’t something appraisers can decide on their own.
Be Transparent: You’ve got to disclose that you’re reusing prior inspection data and include the original inspection date and details. Being upfront about this keeps everything above board and compliant.
Addressing Misconceptions
A big misconception was that the 2024 changes forced appraisers to reinspect properties for every new assignment. That’s not always true. If the prior inspection data is still credible and fits the scope of work, it can be reused. Whether or not to reinspect is ultimately up to the appraiser’s professional judgment and/or assignment-specific requirements by the client.
What About Comparable Sales?
The updated definition also affects how appraisers deal with comparable sales. Initially, some appraisers worried that the changes would require new inspections for every comparable in every report. That’s not the case. Many appraisers use the same comparables across multiple reports, often based on a single exterior inspection. While USPAP doesn’t say you have to reinspect comparables for every assignment, appraisers should still consider whether the timing of those inspections impacts credibility. For instance, using a winter photo of a property in a summer report might raise some eyebrows. Clear disclosure of when those comparables were observed is recommended.
For a deeper dive into scenarios where prior inspections can be reused, check out this blog on USPAP’s 2024 updates and personal inspections.
What’s Next?
Understanding these changes and applying them smartly will help appraisers stay compliant while keeping their reports credible and reliable. As these updates roll out, staying tuned to new guidance and evolving best practices will be key for the profession.
Enjoyed this blog? Be sure to explore our other insightful content that delves into additional USPAP 2024 changes. Check it out HERE!
Updated January 8, 2025, to include the latest guidance on personal inspections and reusing prior data under USPAP's 2024 updates.