Types of Appraisals & Regulations

Uniform Standards of Professional Appraisal Practice (USPAP) – Requirements for all appraisal reports. Appraisers are required to comply with the Uniform Standards of Professional Appraisal Practice (USPAP). 

Restricted Appraisal Report – A Restricted Appraisal Report is a brief report that includes fewer details than a conventional report. The appraiser’s research and data used are kept in the appraiser’s work file. This type of report is often used to value the property prior to negotiations for a possible conservation easement. 

Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA, “Yellow Book”) – Most commonly called “Yellow Book,” this type of appraisal is for federal land acquisitions. There are additional uses, such as federal and/or state funding applications. Note: When completing a Yellow Book appraisal, the appraiser must follow both USPAP and Yellow Book requirements. Yellow Book has more requirements than USPAP; this type of report is more extensive than a conventional report. 

Conservation Easement (Conventional Format or Yellow Book Format)– This appraisal is for the purpose of determining the value of the property before the placement of a conservation easement, and the value of the property after the encumbrance of a conservation easement. The difference between the two values indicates the change in value due to the encumbrance of a conservation easement.  These are often used to apply for state and/or federal funding or for conservancy-landowner negotiations. The report can be in conventional format or Yellow Book format.  

IRS Conservation Easement Appraisal Report – Like the conventional conservation easement, IRS CE Appraisal Reports are for the purpose of determining the value of the property before the encumbrance of a conservation easement, and the value of the property after the encumbrance of a conservation easement. The IRS conservation easement report is for tax purposes. Many landowners who place conservation easements on their properties qualify for a tax deduction. The difference between the two values indicates any loss in value when a landowner donates all or part of a conservation easement. Any loss in value is often tax deductible. We encourage you to talk with your conservancy contact to discuss this option and hire a tax preparer who is familiar with conservation easement deductions.