In USPAP, the appraisal process is divided into two distinct types of activity. What are these types?

The appraisal process in USPAP (Uniform Standards of Professional Appraisal Practice) is fundamentally divided into two primary types of activity: development and reporting.

Development refers to the process of gathering and analyzing data, applying appropriate techniques, and formulating a credible appraisal. This stage is critical because it encompasses all the necessary steps and considerations that lead to the final value estimate. It includes understanding the purpose of the appraisal, identifying the relevant market data, and ensuring that the methods used are compliant with USPAP standards.

Reporting, on the other hand, involves the communication of the results of the development process. This includes the preparation of the appraisal report which must convey the findings clearly, concisely, and in a manner that meets the needs of the intended users. The reporting must follow specific guidelines to ensure that the information is presented in an understandable format, adhering to the standards set forth by USPAP.

This two-fold structure helps ensure that both the process of arriving at a value and the articulation of that value are completed with integrity and professionalism, which is essential in the field of appraisal.