Market Trend Statements in Appraisal Reports and Restricted Appraisal Reports
Market Trend Statements in Appraisal Reports and Restricted Appraisal Reports:
The USPAP states, in part:
1:3 – When necessary for credible assignment results in developing a market value opinion, an appraiser must:
- Identify and analyze the effect in use and value of:…
- Economic Supply and Demand
- Market Area Trends
Appraisers have wide latitude and significant responsibility in identifying current issues of Supply and Demand, as well as Market Trends.
To assist our members in developing adequate statements of Market Trends in these volatile times we offer the following statement framework for use in your reports. Please ensure that you modify the following statement to adequately reflects the subject market trends.
MARKET TREND STATEMENT:
“With the current state of the Canadian Economy, States of Emergency, volatility of real estate markets, principles of Supply and Demand, the rapidly changing cost and availability of credit, and various other market forces being impacted by the Co-Vid 19 Virus; Intended Users of this report are cautioned that the values stated in this appraisal assignment are as of the Effective Date only and in no way reflect issues of supply and demand, marketability, or values of the subject property at any subsequent time.”
As stated above, it is a requirement of the USPAP that each appraisal assignment include a comment, and analysis of Economic Supply and Demand, as well as Market Area Trends.
If you have any questions or concerns, please contact Rob MacDonald by email at ceo@cnarea.ca.