Standards 3 through 10 - Review, Consulting, Mass Appraisal, Personal Property, Business Valuation
One core, many products
Standards 3 through 10 carry the same obligations - problem identification, scope of work, credible analysis, clear reporting - into other practice types.
Appraisal review (Standard 3). The reviewer develops an opinion about the quality of another's work. Constraints: the reviewer must be competent in the property type and review method; a reviewer must not review work in which the reviewer participated; the reviewer must consider the original appraiser's scope of work and state the review's own scope. If the reviewer also offers a value opinion, Standards 1 and 2 apply to that portion.
Consulting. Analysis, recommendations, or opinions to solve a problem without an opinion of value as a component. Include a value opinion and the assignment becomes an appraisal.
Mass appraisal. Valuing a group of properties as of a given date using standardized data, models, and statistical testing. It is not a shortcut form of single-property appraisal, and the report must describe the model, data, and testing.
Personal property. Requires analysis of the specific item's characteristics and the applicable trade level (wholesale versus retail), which drives the conclusion.
Business and intangible property. A business enterprise value includes tangible and intangible assets; the appraiser must define what is being valued and avoid double counting.
Trap to remember
Review questions bait candidates into assuming a review must disagree with the original value. A review can fully support the original conclusion - the opinion is about quality and reasonableness.