Why Is the USPAP Certification Statement Important?
It's currently estimated that there are between 23,000 and 39,000 airplanes in the world. That number is surprisingly low, making aircraft still highly valuable in today's market. If you have a large investment such as an airplane, you want to be sure you receive the best price for it. But you don't want to go to just any aircraft appraisal company. You want to be sure your company follows the rules of the Uniform Standards of Professional Appraisal Practice (USPAP). Only then will you receive a USPAP certification statement. But why is a USPAP certification statement important? Keep reading to learn more.
Uniform Standards of Professional Appraisal Practice (USPAP)
In 1986, 9 appraisal organizations in the United States and Canada formed a committee on the Uniform Standards of Professional Appraisal Practice (USPAP). This organization formed due to a crisis occurring in the savings and loan industry. In 1987, the same committee established the Appraisal Foundation to set standards in the U.S. appraisal industry. Specifically, the Foundation sets standards for those involved in the appraisal of real estate and personal property.
USPAP Certification Statement
The Uniform Standards of Professional Appraisal Practice (USPAP) sets both ethical and performance standards in the appraisal industry. State-licensed appraisers involved in federal real estate transactions must practice its standards. Certification depends on whether real property or personal property is being appraised. To achieve certification, appraisers complete a 15 hour course. Every two years, they must complete a 7 hour refresher course. Documents written by a licensed or certified appraiser includes a USPAP certification statement. This statement certifies that:
- the statements in the report are accurate
- the statements are unbiased and professional
- the appraiser has no personal interest in the property or personal associations with the parties involved
- compensation for the appraisal was not influenced by the value of the personal property, and vice-versa
The certificate aims to keep property appraisals accurate and unbiased for all parties involved.
Selling an Airplane
Single-engine planes range from about $15,000 to $100,000. Thus, you want to be sure your plane is appraised by professionals to know it's true worth. Factors like depreciation greatly affect selling price, and only a professional can take that into account. When selling aircraft, look for someone who can provide a USPAP certification statement with their appraisal so you know their appraisal is unbiased and accurate.
When selling or buying personal property, you want to be sure the appraised value is correct. Inflated prices hurt the buyer, and deflated prices hurt the seller. The role of an appraiser is to offer honest valuations of property. One way this is achieved is through certification by the Uniform Standards of Professional Appraisal Practice (USPAP). This allows inclusion of the USPAP certification statement on appraisals, and you can rest easy that you have an honest estimate on your property. For more resources and articles on aviation and how to sell or buy aircraft, visit our informative blogtoday.