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USPAP
Real estate appraisal is a profession — and with that comes serious ethical obligations that protect you, your lender, and the integrity of the entire transaction.
By HM Hoffman & Co. Appraisers | Main Line, PA | 5 min read
Appraisal is a long-term career — and in recent years the requirements to become a licensed appraiser have grown more rigorous than ever. The education, training hours, examinations, and ongoing professional standards that govern the field make real estate appraisal unambiguously a profession, not a trade. And with any profession comes a binding set of ethical responsibilities.
At HM Hoffman & Co., we take those responsibilities seriously. Here’s an honest look at what ethical appraisal practice actually requires — and how we hold ourselves to it on every assignment across the Main Line and greater Philadelphia area.
Our duties to our clients
For a standard residential appraisal, the lender places the order — making the lender our client. This means appraisers have specific duties of privacy to the lender, which is why homeowners typically need to request a copy of the appraisal report through their lender rather than directly from us.
Beyond confidentiality, our responsibilities to clients include:
Accurate, scope-appropriate reporting. Every figure and conclusion in an appraisal report must be accurate and suited to the parameters of the assignment — no shortcuts, no inflation, no omissions.
Maintaining competency. Appraisers must keep their knowledge and skills current through continuing education and refuse assignments outside their area of competence.
Professional conduct. How an appraiser communicates, meets deadlines, handles disputes, and presents their work all reflect on the integrity of the report itself.
Responsibilities to third parties
Appraisers can also carry fiduciary responsibilities to third parties — homeowners, buyers, sellers, or others with a stake in the outcome. These parties are typically named explicitly in the appraisal report. An appraiser’s duty extends only to those parties identified within the scope of work or the written parameters of the order.
There are also responsibilities that exist entirely outside the client relationship. For example, Pennsylvania appraisers are required to retain their work files for a minimum of five years — a standard HM Hoffman & Co. diligently meets on every assignment.
What we will never do
We do not accept assignments on contingency fees — meaning we will never agree to complete an appraisal and collect payment only if the loan closes. We do not accept percentage-based fees tied to a property’s value. These practices are among the most serious ethical violations in the appraisal profession, because they create direct financial pressure to inflate values. We don’t do it. Full stop.
What USPAP requires — and how we follow it
The Uniform Standards of Professional Appraisal Practice (USPAP) is the governing ethical and performance framework for appraisers nationwide. In Pennsylvania, USPAP compliance is required by law. Under USPAP, it is explicitly unethical to accept an assignment that is contingent on any of the following:
Reporting a predetermined result — agreeing in advance to hit a specific value opinion before the work is done.
A direction in results that favors the client — skewing the analysis to support what the lender, buyer, or seller wants to hear.
The amount of the value opinion itself — tying compensation to whether the number comes in high or low.
HM Hoffman & Co. follows these rules to the letter on every assignment. When you receive a report from us, you can be confident that the opinion of value reflects the evidence — nothing more, nothing less.
Our reputation on the Main Line
HM Hoffman & Co. has built its name in the Main Line and greater Philadelphia market on one thing: competent, ethical, unbiased appraisal work — delivered professionally and on time. We don’t cut corners, and we don’t let outside pressure influence our conclusions. That independence is the most valuable thing we offer.
Work with an appraiser who puts ethics first.
HM Hoffman & Co. provides honest, independent, USPAP-compliant appraisals across the Main Line — including Bryn Mawr, Wayne, Haverford, Radnor, Villanova, Ardmore, and surrounding communities. Contact us to learn more about our process and how we can help.