Posted 12-3-07

Page 165: Delete the two paragraphs below mid-page. One begins "In addition, when using photographs..." The second is the italicized paragraph beginning "I have not made a personal inspection...". Replace both paragraphs with this text.

In addition, when using photographs in lieu of a personal inspection the relevant section of the appraisal’s USPAP Certification Statement must be properly modified to reflect that the property was not personally inspected. In addition, the report’s scope of work should reflect that the property was not inspected, the reason for the non-inspection, and what impact, if any, the lack of a personal inspection has on the appraiser’s value conclusions. As an example:

• The relevant section of the USPAP Certification Statement would be written as follows when property was not personally inspected by the appraiser:

I have not made a personal inspection of the property that is the subject of this report.

• Additionally, the report’s scope of work would be altered to reflect that the appraiser did not personally inspect the property. The scope of work would also include an explanation of why the property was not inspected, a description of the assumptions that therefore had to be made by the appraiser, and a disclosure of the possible impact on value conclusions should those assumptions later prove to have been inaccurate. As an example:

I did not personally inspect the property which is the subject of this report since the subject property had been destroyed by fire. Value conclusions were based on client-provided photographs and written descriptions. The limiting condition of being unable to personally inspect the property caused me to make the extraordinary assumptions that the property existed and that it was in the condition as indicated to me and that is reflected elsewhere in this appraisal report. Should certain views of the subject property not be visible in the client-provided photographs, I made the assumption that there existed no significant condition problems in those unseen areas unless otherwise commented on by the client in the descriptions he provided. I have also made the assumption that the descriptive information provided by the client was accurate. Due to my familiarity with the type of property being appraised, I consider an appraisal based on the use of client-provided photographs and descriptions as adequate for me to arrive at a credible opinion of value. Assignment results could vary should the assumptions made be inaccurate.