What constitutes a competency issue for an appraiser prior to an assignment?

A competency issue for an appraiser prior to an assignment is primarily related to lacking the necessary knowledge or experience to perform the assignment competently. The Uniform Standards of Professional Appraisal Practice (USPAP) emphasizes that appraisers must have the requisite skills, education, and experience to complete an appraisal adequately. This means they should be familiar with the property type being appraised, the market conditions, and the appraisal methods that are most appropriate for the assignment. If an appraiser does not possess this essential knowledge or experience, it raises concerns about their ability to provide a reliable and credible appraisal, thereby creating a competency issue.

While not having the appropriate license, failing to conduct local market research, or using outdated appraisal techniques can also impact the appraisal process, these factors do not solely define competency. Licensing and conducting research might relate more to legal compliance or procedural correctness, while using outdated techniques may reflect specific skills but does not inherently indicate a lack of competence overall. In essence, the core of competency is centered on the appraiser’s knowledge and experience relevant to the assignment they are undertaking.