Tagged: Uniform Standards of Professional Appraisal Practice

Incorrect 1004MC Form Trend Reporting 22

Incorrect 1004MC Form Trend Reporting

Appraisers, I have ‘come in contact with’ an appraisal report, produced by a Certified appraiser and its Licensed Trainee – working in the area near my office. It’s clear to me that these two appraisers do not understand trend reporting that this form indicates. By the way, I’m no great fan of the MC form. However, since we are required to use it, we better darn well learn to use it properly. Report what the trends on it show and not something obtained from elsewhere, sometimes called “PFA.” If we don’t, or choose to ignore what the form shows, then the ENTIRE...

Don't Fence Me In - Physical Inspection 3

Don’t Fence Me In

We truly live in an incredible world. The age of information and technology has given us more freedom than at any other time in the history of mankind. Just in the last few years, the mobile office has become a reality in such a way that it would be nearly impossible for our clients to know much about our physical office at all. Since most of us have little to no walk-in traffic, running an appraisal office from a spare bedroom at home or even from the lanai of your Belizean condo is not out of the realm of possibility....

A Contrary Response to The Future of Valuation - Imagecredit Flickr - Simon Cunningham 6

A Contrary Response to The Future of Valuation

Recently an article appeared in WorkingRE about the Future of Valuation. The author is the President of a large and highly respected Appraiser  Peer and Educational Organization.  My own contrary response was either too lengthy, or deemed too critical of a big advertiser for publication in WorkingRE. I thank the hosts of this blog for granting the space. My concern with the author’s views starts with the description of our Real Estate Appraisal profession as ‘valuation.’ The concern is more than mere quibbling over semantics. Valuation is the phrase preferred by the Business Valuation community. They have long been dominated...

Free Enterprise an Appraisal Myth 40

Free Enterprise an Appraisal Myth?

Is THAT free enterprise? I’m surprised anyone in the business today sees any minimum pricing proposal as being anti-free enterprise. Contrary to popular belief we have not had free enterprise in the GSE appraisal process since HVCC first reared its ugly head. AMCs ‘telling’ us to pick a number from $250 to $350, or that ‘THEY pay’ $325 per 1004 is NOT free enterprise. I’m an old timer (1986) that was brought up on what used to be AIREA (now the AI) & SREA (now gone) positions that free enterprise and the Sherman Anti-Trust Act prohibited us from ‘even discussing’...

Ganter Brothers versus Appraisers 5

Ganter Brothers Versus Appraisers

It’s been a few months since we issued our last update on our friends (and yours) the Ganter brothers (Chris and Ben). The Ganters have suffered what for most people would be a series of embarrassing setbacks in their blatant attempts to use the legal system to pressure appraisers and/or their E&O carriers into paying off what we view as frivolous claims to save the cost of litigating the underlying dispute. For those of you who are reading this for the first time, we have issued two other alerts about this in the past 18 months. Links to the earlier...

An Open Letter to the Valuation Profession from the Appraisal Foundation regarding the rift with the Appraisal Institute 2

An Open Letter to the Valuation Profession

An Open Letter to the Valuation Profession from the Appraisal Foundation regarding the rift with the Appraisal Institute Value. Appraisers grapple with this concept daily as they analyze data and information to arrive at an opinion that is credible.  Some information found is valid, some is tainted, and appraisers work diligently to separate the good from the bad to arrive at their conclusions – opinions that can withstand future tests. Likewise, The Appraisal Foundation (TAF; the Foundation) remains constantly attuned to what is going on in the valuation realm, conscientiously analyzing information and working to uphold the appraisal profession so its...

Another Win for Appraisers - California 6

Another Win for Appraisers – California

Cooperation between appraisers and multiple appraiser organizations wins the day in California! When is the last time you heard of a State bill that was already passed by both State Houses (Assembly & Senate) in any state, being quashed short of a Governor’s veto? Especially a “consent calendar” item that legislators automatically vote to approve for each other as a legislative courtesy. In less than two months? Let me share a quote from Rey Cano’s regular appraiser newsletter (www.Malibuappraisal.com). Rey, along with George St Johns, was an original co-founder of the California Coalition of Appraisal Professionals (CaCAP), where with full...

Skewed Customary Fee Perceptions - Imagecredit Flickr - Quinn Dowbroski 14

Skewed “Customary” Fee Perceptions

I no longer care about “customary”. “Customary” in Dodd-Frank’s customary and reasonable is a negatively biased fee before state studies begin! We all know that the “C” part of C & R is supposed to represent the normal fee charged by most appraisers for similar work and conditions. Some AMC appraisers even know the “R” part is supposed to be an amount that is reasonable based upon ALL factors necessary for completion of the assignment in a USPAP compliant and professional manner. Unfortunately HVCC and the AMC havoc it wreaked has existed far too long for there to be a...

FHA vs USPAP - FHA vs USPAP - FHA requirements – Appraisers Caught in Catch 22 111

FHA Requirements vs USPAP

FHA Requirements vs USPAP – Appraisers Caught in Catch 22 Excerpt The new FHA Handbook will become effective on September 14, 2015. There has been much discussion of the implications of changing “should” to “must” in thousands of examples in the Handbook. As a Board member of the Arizona Association of Real Estate Appraisers as well as being on the FHA Roster, I have taken a good hard look at these requirements and then, it hit me as I was teaching the Uniform Standards of Professional Appraisal Practice (USPAP) which is the basis of appraisal standards for every appraiser in...

Report an Opinion of Value as a RANGE - Yes or No - Imagecredit Flick - brandbook.de 3

Report an Opinion of Value as a RANGE – Yes or No?

Can appraisers report an opinion of value as a range? Can that be done? The answer is both YES and NO, or as some like to say, “It Depends!” Here’s an interesting example of YES, involving two commercial properties in Miami Beach (yeah, I know, resi’s, but hang with me here!): Appraisals: Town-owned lots in West Palm Beach worth millions You will notice in the article that the value reported in the appraisals is stated as a RANGE by the appraisers. That is entirely acceptable when appraisals are done under the guidance of USPAP Standard 2. It makes sense to do it...

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