square footage - Appraisers Blogs

Biden’s Remark on Home Values Sparks Backlash

AppraisersBlogs — Wed, 10 Jan 2024 13:30:55 +0000

President Biden’s recent comment about the discrepancy in home values between Black and white families has sparked backlash on social media, with many accusing him of being a “divider”. During a campaign speech at Charleston Church in South Carolina, Biden stated that homes owned by Black families are often valued at less than those owned by white families, even if they are built by the same builder. “Today, a home owned by a Black family on one side of a highway, built by the same builder on the other side of the highway & a white guy living in it,...

The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…

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GLA Adjustment: Adjusting Full Difference vs a Threshold Amount

Dave Towne — Wed, 14 Jun 2023 12:30:02 +0000

Appraisers, on Thursday, before the Memorial Day holiday, I circulated across the US an email asking for response to a simple two question survey about how you “adjust” the GLA square footage between the Subject and Comparables. The questions: adjust 100% of the square foot difference, or adjust the difference after a ‘threshold’ square foot amount (meaning not the full 100% difference). I received a respectable number of responses compared to emails sent out, and also posted to 3 different web forums, nearly 200 replies. So that’s enough to validate the percentage of both responses, and report the trends. As...

Schizophrenic Adjustments Appraisers, I’ve written in the past about what I believe are strange ways to report adjustments in appraisals, and suggested…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
Maxine Waters Wants Appraisers Investigated On February 22, 2022, Maxine Waters sent a letter to HUD Secretary Marcia Fudge, TAF, ASC and AI regarding ongoing…

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AVMs… Garbage In, Garbage Out

AppraisersBlogs — Wed, 15 Mar 2023 12:30:07 +0000

Garbage data in means garbage results out every time! It’s no secret that AVMs have been a thorn in the side of real estate appraisers since they first came out. Despite all their bells and whistles, these automated valuation models still rely on inaccurate public records and often come up with wildly inaccurate home values. Unfortunately, some consumers don’t realize this until it’s too late – when reality comes crashing down from a local real estate professional after they’ve already gotten their hopes up about their home value thanks to an AVM. Yesterday, a Virginia assessor emailed us with an...

No Appraisals Required. The End of Appraisers? No appraisal may be required in the future! Fannie Mae took a direct shot at appraisers with the announcement of…
House Measurement by Property Data Collector Gone Wrong The lender allowed an unlicensed property data collector give bad data to the appraiser... I work for this lender and…
Exactly How Are Property Data Collectors… Somebody explain to me exactly how Property Data Collectors are “professionally trained” per Fannie Mae directives. The fact is, Fannie…

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House Measurement by Property Data Collector Gone Wrong

Guest Author — Tue, 24 Jan 2023 13:30:12 +0000

The lender allowed an unlicensed property data collector give bad data to the appraiser… I work for this lender and they will not let my trainee inspect. The owners are now underwater by more than $100,000… I’m sad and I’m mad! I recently took on a measure job for a client who was questioning the square footage of their home. The couple bought the house at the height of the market last year. They paid 12% over list price to get the house. They put an appraisal waiver in the contract which meant they could not walk away if the...

Appraisers Liable for Third Parties Data Ultimately the appraiser is responsible and liable for data collected by third parties. There has been a lot of discussion…
Train Us and Trust Us The most weighted technique in most automated valuation programs comes down to one over-simplified formula, based on a guesstimation from…
Desktop Appraisals: Has The Devil Infiltrated The… Are desktop appraisals with third-party inspectors protecting the public, or are these products about to destroy the very profession I…

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Solving the ANSI Measuring Dilemma

Dave Towne — Mon, 18 Apr 2022 12:30:51 +0000

…a brilliant ‘work around’ to solve the subject & comps adjustment issues, which Fannie Mae thinks is no big deal… Appraisers, I was chatting with an appraiser buddy last week about the ANSI measuring dilemma we all face when doing Conventional lending reports, which ultimately will wind up with Fannie Mae. In my view, my appraiser buddy has a brilliant ‘work around’ to solve the subject & comps adjustment issues, which Fannie Mae thinks is no big deal, but we all know will cause considerable consternation among users of our reports, and with appraisers trying to figure out how to...

VA Unofficially Says NOPE to ANSI The other agencies, Freddie Mac, HUD/FHA, USDA, ONAP, VA have NOT (yet) adopted this ANSI measuring protocol. Appraisers, an appraiser…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
ANSI & Floor Plans Goofiness "...if you the appraiser are not required to inspect the property yourself, don’t you want to have a more detailed…

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Scope Creep & the Imploding of Rules

Douglas G. Kues — Wed, 13 Apr 2022 12:30:16 +0000

…the imploding rules then implemented, and the scope creep that evolved because the cart was leading the horse, has severely lessened the reliability of ALL appraisals in my opinion. ANSI, while certainly worthy of discussion and taking a position on, will not solve the real “appraisal problem” that we all have. It really isn’t an effective tool anyway, but what the heck do I know. Being one of those AG certified from the very beginning, too early to get trained by anyone above me, since 1992, and licensed in real estate since 1971, and a broker since 1991, in a...

Solving the ANSI Measuring Dilemma ...a brilliant ‘work around’ to solve the subject & comps adjustment issues, which Fannie Mae thinks is no big deal...…
Smartphone Measuring Technology This new measuring technology claims the software to be ANSI compliant. Appraisers, over the past couple of years, there have…
VA Unofficially Says NOPE to ANSI The other agencies, Freddie Mac, HUD/FHA, USDA, ONAP, VA have NOT (yet) adopted this ANSI measuring protocol. Appraisers, an appraiser…

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VA Unofficially Says NOPE to ANSI

Dave Towne — Mon, 21 Mar 2022 12:30:20 +0000

The other agencies, Freddie Mac, HUD/FHA, USDA, ONAP, VA have NOT (yet) adopted this ANSI measuring protocol. Appraisers, an appraiser I know sent an email to the VA asking if VA was going to require appraisers to adhere to the ANSI Z765-2021 Measuring Standard as of April 1, 2022. The appraiser received an ‘unofficial’ response back from a person within the VA connected to processing appraisals, which said: “The short answer is, no.” I say this is ‘unofficial’ because to-date, I have seen nothing “official” from VA about this topic. Only officials from within VA know whether or not they...

Smartphone Measuring Technology This new measuring technology claims the software to be ANSI compliant. Appraisers, over the past couple of years, there have…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…

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ANSI & Floor Plans Goofiness

Dave Towne — Wed, 09 Mar 2022 13:30:52 +0000

“…if you the appraiser are not required to inspect the property yourself, don’t you want to have a more detailed diagram of the home, i.e., a Floor Plan?” There’s been lots of discussion on various forums, classes, Facebook, blogs, podcasts, surveys, articles, etc., about the upcoming ‘demands’ by ONE of the GSE’s to measure using ANSI Standard Z765-2021, and by both GSE’s to provide a Floor Plan for certain assignments. Uniformity is the stated goal. ANSI is not consistent in how they want the perimeter of homes to be measured. Here’s why: for new construction, when the plans (blueprints) are...

VA Unofficially Says NOPE to ANSI The other agencies, Freddie Mac, HUD/FHA, USDA, ONAP, VA have NOT (yet) adopted this ANSI measuring protocol. Appraisers, an appraiser…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…

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ANSI Measuring Standard Required in 2022

AppraisersBlogs — Fri, 17 Dec 2021 13:30:35 +0000

On December 15, 2021, Fannie Mae announced that it will be adopting ANSI Measuring Standard in 2022. Appraisers will be required to use the Square Footage-Method for Calculating: ANSI® Z765-2021 (American National Standards Institute®) Measuring Standard for measuring, calculating, and reporting gross living area (GLA) and non-GLA areas of subject properties for appraisals requiring interior and exterior inspections with effective dates of April 1, 2022 or later for loans sold to Fannie Mae. For more information, watch this video and check out this fact sheet. Here are some items for appraisers to consider when using the ANSI standard Measurements...

Is ANSI for Appraisers Really the Answer? The real estate industry has a square footage credibility problem. ANSI has been out since 1996 with no new pages…
The Missing Standard What can we do to establish a national measurement standard for appraisers? Every week I talk to appraisers in different…
Two Measurement Standards: ANSI vs. AMS Are you really following the ANSI ® home measurement standard? When the ANSI ® standard isn’t really ANSI ® Many…

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Is ANSI for Appraisers Really the Answer?

Hamp Thomas — Thu, 18 Nov 2021 13:30:46 +0000

The real estate industry has a square footage credibility problem. ANSI has been out since 1996 with no new pages added and very few changes. In a constantly changing industry with new home styles and designs, change is a requirement. We have to remember that ANSI was originally created to be simple enough for a teenager to understand. It’s a great basic tool but falls well short of solving the real estate industry’s square footage problems. The first problem is that mandating ANSI for all appraisers may be a good first step, but fixing the whole problem requires two additional...

Train Us and Trust Us The most weighted technique in most automated valuation programs comes down to one over-simplified formula, based on a guesstimation from…
The Missing Standard What can we do to establish a national measurement standard for appraisers? Every week I talk to appraisers in different…
Two Measurement Standards: ANSI vs. AMS Are you really following the ANSI ® home measurement standard? When the ANSI ® standard isn’t really ANSI ® Many…

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4 Uncontrollable Factors that Can Affect Home Appraisals

Guest Author — Wed, 26 May 2021 12:30:38 +0000

…some uncontrollable factors that come into play when determining the value of residential property… This article contains a range of false and misleading information. You can find a rebuttal here. There are many factors that can affect the valuation of a residential property. Some of these factors, such as the level of care and maintenance work that the homeowners carried out, can be controlled. There are also factors, such as racial biases, that may unknowingly appear in the picture. In recent years, some homeowners have reported that they received significantly higher valuations for their residential property once they eliminated traces...

Why is Only One Side of This Story Being Told? There are always two sides to every story; however, understanding is a three-edged sword: your side, their side, and the…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…

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What If the Appraisal Comes in too Low?

Guest Author — Fri, 19 Mar 2021 12:30:45 +0000

…how to prevent a low appraisal in the first place… As real estate brokers in New York City, many buyers ask us what options exist if the appraised value comes below the contract’s purchase price. We explain how the appraisal rebuttal process works and how to prevent a low appraisal in the first place. Here are the most frequent questions buyers ask us. For this reason, we will draft this article like a Q&A. What happens when the appraisal is below the purchase price? What to do when the appraisal comes too low? How to contest a low appraisal? Can...

The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…

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Train Us and Trust Us

Hamp Thomas — Fri, 12 Mar 2021 13:30:38 +0000

The most weighted technique in most automated valuation programs comes down to one over-simplified formula, based on a guesstimation from an outside source that has no interest in the real estate system… Dear FHFA: Please accept the following comments in regard to Question A1.4. The response also includes comments on several additional questions. Thank you for taking the time to review these thoughts. Technology has made so many improvements in the last decade and we now have the chance to truly improve our home valuation system. With that being said, the last piece of the quality puzzle starts at the...

Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
The Real Cause of the Home Value Gap Is the Income Gap Blaming appraisers for the income gap will never solve the real underlying problem... Blaming appraisers for the income gap is…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…

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Are ANSI Standards Changing?

VaCAP Board — Mon, 20 Jul 2020 12:30:14 +0000

American National Standard for Single-Family Residential Buildings, Square Footage – Method of Calculating, ANSI Z765-2020 VaCAP has just learned of a meeting on July 22 to discuss and vote on proposed changes to the square footage calculation under ANSI guidelines. The proposed changes were published for public comment which closed in March. The meeting, which is described as a virtual Consensus Committee Meeting is open to the public, however you must request the meeting credentials to attend. Again, VaCAP has just learned of this proposed change and apologizes for the last minute notice. See the press release below or on their website. Once...

Two Measurement Standards: ANSI vs. AMS Are you really following the ANSI ® home measurement standard? When the ANSI ® standard isn’t really ANSI ® Many…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…

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Will Big Data Put Appraisers Out of Business?

Dustin Harris — Mon, 13 Jul 2020 12:30:46 +0000

Part of the boom in the availability of data has led to companies such as Trulia and Zillow who claim they can “Zestimate” a home’s value instantaneously. But can your potential customers trust such value? In the old days, if a homeowner really wanted to find out how much their property was worth in the current market, they called an appraiser. Our customers understood that a licenced and qualified appraiser is trained, experienced, knowledgeable, and unbiased in his or her own marketplace. In the past few years, the Information Age has flooded us with data; lots of data. Big data...

Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
Security Bars Removal Law Debunks Alleged Racial… Complainant stated appraiser told them they should remove security bars from windows. Complainant stated this is evidence of "racist discrimination"...…

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Appraisers, did you Shoot yourself in the Foot?

Richard Hagar, SRA — Mon, 30 Sep 2019 12:30:23 +0000

When I explain the rules many of the appraisers start complaining: “An MLS photograph depicts the house at the time it sold so it’s more accurate than my photograph would be”… There’s a lot of yelling and screaming about bifurcated appraisals. Unfortunately, appraisers may have shot themselves in the foot when it comes to this issue. Allow me to provide an analogy to help explain the issue. I’m not sure if this happens in other areas of the country but in Seattle there is a strange “left leaning” way they do things: State and Federal governments perform numerous traffic studies, to...

Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
Look in the Mirror The phrase “take a look in the mirror” is a common idiom used to encourage self-reflection and introspection. It is…

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Hybrid Inspectors Offering Appraisal Opinions

Mark Skapinetz — Mon, 17 Jun 2019 12:30:03 +0000

Clear Capital admission: This is an admission that inspector were previously offering appraisal opinions re Q&C. There remain many other areas in hybrids that also are appraisal opinion being provided by non appraisers. I have written many blog posts here, mainly for the consumer to read and understand what is actually happening in the world of Real Estate Valuations. My blogs range from being overcharged for appraisals so the middle man (the appraisal management company or AMC) can make money, lenders still pressuring appraisers to hit a value, and now having untrained and unlicensed people perform inspections (see my last...

What IS a “ClearVal Appraisal”? Clear Capital ClearVal... Value Not So ClearCut... I’ve finally had an opportunity to read a hybrid ‘appraisal’ start to finish.…
First Impressions of Clear Capital’s AVM An Appraiser’s First Impressions of Clear Capital’s AVM... It’s no secret the lending industry is aggressively pursuing alternatives to traditional…
Appraiser Imposters! AMC sends a "non-appraiser" to photograph, measure, sketch, and observe a property, it’s quality, condition, and surroundings instead of using…

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Is SmartExchange Not USPAP-Compliant?

Guest Author — Wed, 30 Jan 2019 13:30:58 +0000

Is Smartexchange Resulting in USPAP Non-Compliance? This blog is likely going to stir up controversy. It is likely going to have a few folks calling me a loyalist to a la mode, or other similar things. Am I a loyalist? I do not see myself as such, but a la mode has been the only software that I have used in my career for residential form reporting. I do use ACI in the corporate setting as a reviewer and manager in my firm. I like and consider many of the staff at a la mode to be my friends, and I have had long relationships...

It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
Solving the ANSI Measuring Dilemma ...a brilliant ‘work around’ to solve the subject & comps adjustment issues, which Fannie Mae thinks is no big deal...…

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USPAP & Questions on Confidentiality

Dustin Harris — Fri, 18 Jan 2019 13:30:11 +0000

How can using such a contractor not be a violation? In the context of a real estate appraisal, especially a residential real estate appraisal for a lender thru an AMC, what is confidential? First, look at USPAP’s definition of confidential information (lines 105 – 108 in the 2018-2019 edition). It says “confidential information [is] information that is either…identified by the client as confidential when providing it to an appraiser and that is not available from any other source; or…classified as confidential or private by applicable law or regulation” (ibid; emphasis added). Notice confidentiality flows to the client, not to any...

The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…

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Are You a Hybrid Appraiser?

Hamp Thomas — Fri, 05 Oct 2018 12:30:47 +0000

We won’t take appraiser trainees, but we’ll take real estate trainees… That’s the million dollar question. Big banking is counting on the majority of appraisers to fall in line with whatever hybrid product they decide is best. It makes for an interesting road ahead because appraisers actually have the power to make these products a success or a failure. A hybrid appraisal is still an appraisal and must have a signature from a licensed appraiser. If banks can keep whittling away at the appraiser’s scope and can get the total appraisal fee low enough, they will achieve their goal and...

Need for Speed? Hybrids are NOT the Answer! ...surveys indicate that appraisals ordered directly by lenders take much less time... Dear Colleagues, There is a current narrative that…
Homeowner Rejects Hybrid Appraisal Appraiser Alert: Don’t Mess with a 4’ 10” Senior Citizen! Last week I called a borrower to schedule the appraisal appointment.…
Who Benefits & Who Pays the Price? Why does a hybrid appraisal work better? What are the benefits? Who benefits? Who pays? A hybrid appraisal, as it…

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square footage - Appraisers Blogs

Biden’s Remark on Home Values Sparks Backlash

Related Posts:

GLA Adjustment: Adjusting Full Difference vs a Threshold Amount

Related Posts:

AVMs… Garbage In, Garbage Out

Related Posts:

House Measurement by Property Data Collector Gone Wrong

Related Posts:

Solving the ANSI Measuring Dilemma

Related Posts:

Scope Creep & the Imploding of Rules

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VA Unofficially Says NOPE to ANSI

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ANSI & Floor Plans Goofiness

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ANSI Measuring Standard Required in 2022

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Is ANSI for Appraisers Really the Answer?

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4 Uncontrollable Factors that Can Affect Home Appraisals

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What If the Appraisal Comes in too Low?

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Train Us and Trust Us

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Are ANSI Standards Changing?

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Will Big Data Put Appraisers Out of Business?

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Appraisers, did you Shoot yourself in the Foot?

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Hybrid Inspectors Offering Appraisal Opinions

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Is SmartExchange Not USPAP-Compliant?

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USPAP & Questions on Confidentiality

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Are You a Hybrid Appraiser?

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