The New USPAP

[George Hatch]

Whatever verbiage your wife or daughter thinks would trigger someone would probably cover most of them.

 

[andrew81]

Are you crazy? 10 hours?
If written right and to the point, should be less than 1 hour to get to the main points.
Additional comments and opinions are less important but to read while fishing.

It takes about 45 minutes to read the definitions through standards rule 2, which is only 24 pages.

Depending on ones comprehension of the subject it could take more than 105 hours and still not have read it even once.

Read the following sentences out loud very slowly over and over again until you understand it.

Definitions through Standards Rule 2 is 24 pages.

Definitions through Standards Rule 2 is 24 pages.

Definitions through Standards Rule 2 is 24 pages.

Definitions through Standards Rule 2 is 24 pages.

 

[RCA]

Regardless of your desire to import engineering standards into the appraisal profession

I suppose you mean me. I have never said anything about importing any engineering standards into the appraisal profession. But what I said was that some engineers and scientists should always be involved in creating appraisal standards. That is because they are used to dealing with a higher level of complexity than what you find in traditional appraisal (which is dominated by incompetence). They have more advanced mathematics knowledge and intelligence than appraisers - and are capable of seeing just how complex some appraisal problems really are. Many engineers will be capable enough to develop solutions and rules that will be general enough to successfully work in different situations for appraisal, - at least with the help of some good appraisers.

Certainly appraisal is not on the same level as designing a bridge or a nuclear power plant. But it is often more complex than even the best appraisers can successfully deal with. Some higher level help is needed. What we have now for standards and education is insufficient, even embarrassing.

the point remains that appraisers don't generate or control or have any means of validating to an engineering standard the comparable data they use in their appraisals.

Like I said we are not talking about any engineering standard. Although, quite frankly some appraisers probably do have to deal with engineering standards in some cases.

Appraisal data is just as good as a lot of engineering data. Much better in fact. I often get R2 values of 80% or higher. A petroleum engineer might very well have to work with R2 values of between 40% and 70%, because of noise factors.

So, let's be very clear, in many cases our MLS data is actually good to very good, especially in California Metro areas.

On such data I often perform different types of analysis:

1. Principle Components and Multi-Dimensional Scaling to study the relationships between the different factors impacting value and much the relate to each other.
2. Multi-Dimensional Scaling and Cluster Analysis on property data over a city, to perhaps verify the usefulness of existing MLS areas ( or define new and better ones), to extract clusters and define their general characteristics. One cluster may have mostly large homes on large lots, dominating in certain geographic areas but found in others to a lesser extent, of a certain age, with perhaps a certain ranking on saleability and on and on. I can get an intuitive understanding of the lay of the land when it comes to real estate - that you can only get with advanced statistics of hundreds of sales.
3. MARS regression to understand the dynamics of pricing through models
4. - And of course there is the issue of learning how to display statistical data and other information on graphs that may include hundreds of properties in a manner that is intuitive and yet provides pop-up information as needed on individual properties.

And so on.

There is no universal external standard that applies to how that information is generated at it's source.

Well, who said there was? And so what? In appraisal we are not looking for any universal standard, we are looking for a standard that does the job.

 

[djd09]

Supreme Court rules Georgia can’t put the law behind a paywall​

The state of Georgia licensed the official copy of state law to LexisNexis.​

A narrowly divided US Supreme Court on Monday upheld the right to freely share the official law code of Georgia. The state claimed to own the copyright for the Official Code of Georgia Annotated and sued a nonprofit called Public.Resource.Org for publishing it online. Monday's ruling is not only a victory for the open-government group, it's an important precedent that will help secure the right to publish other legally significant public documents.


"Officials empowered to speak with the force of law cannot be the authors of—and therefore cannot copyright—the works they create in the course of their official duties," wrote Chief Justice John Roberts in an opinion that was joined by four other justices on the nine-member court.

Supreme Court rules Georgia can’t put the law behind a paywall

The state of Georgia licensed the official copy of state law to LexisNexis.

arstechnica.com

 

[sputnam]

Should that be considered a misleading appraisal report?

The report is misleading but, unintentionally so. USPAP says... perfection is not attainable. The response should be to give the appraiser the opportunity to correct, and learn from, the error.

 

[Terrel L. Shields]

It will take about 10 hours of studying to fully grasp all the details.

Still a lot of things that can be interpreted one way or another.

USPAP says... perfection is not attainable"

"White father in Washington speak with forked tongue" - Chief Joseph

It is either clear and perfect or not. USPAP assumes you cannot achieve Nirvana, but you can be held accountable if you don't. They cannot have it both ways.

 

[djd09]

USPAP does require perfection...down to the dollar...too low racist...too high number hitter

 

[andrew81]

too low racist...too high number hitter

Not a USPAP issue.

But I will agree with you that is the public opinion.

 

[George Hatch]

Still a lot of things that can be interpreted one way or another.

"White father in Washington speak with forked tongue" - Chief Joseph

It is either clear and perfect or not. USPAP assumes you cannot achieve Nirvana, but you can be held accountable if you don't. They cannot have it both ways.

Reach down and get a grip. The isolated anecdotes and heresay sob stories don't demonstrate the prevailing trends of what the states are actually doing.

2022 ASC Annual Report

https://www.ASC.gov/resources

The ASC reports 94,000 active appraisal licenses, excluding trainees. In their annual report they show a 10-yr breakdown of disciplinary actions from the states, numbering a total of 9931. 9931/10 years amounts to 993/yr for a population of 94,000 licenses. When we break the avg yearly discipline numbers down,

307/yr got a fine
255/yr got additional education
------------
73/yr got probation
99/yr got suspension
30/yr voluntarily surrendered
36/yr got revoked


We know the states don't produce a zero-defect performance on their rulings. Some injustices will inevitably occur. But you and I and everyone else knows damn well that almost all of these licensees were among the worst of the worst and fully deserved to get punished for serious and/or chronic misconduct going back many years. TBH, I doubt anyone here would object to it if the states were returning a much higher number because we know there's a lot more serious misconduct going on than the states are catching.

In any case, if we're looking for improvements - on whatever basis someone thinks we can do better - the above establishes the existing benchmark for what these states have actually been doing. When I ask "compared to what?" the above is one of those "whats".

Throwing bombs is easy. Governance is hard.

 

[djd09]

Not a USPAP issue.

But I will agree with you that is the public opinion.

it is a public trust issue...and unsurprisingly it is never USPAP fault