New USPAP Q&As published March 6, 2025

[timd354]

The Appraisal Foundation just release new USPAP Q&A's, which can be accessed here: https://appraisalfoundation.sharefile.com/share/view/s204bf3489b924724ac26de89653ded87

The first new Q&A makes it clear that basing adjsutments on nothing more than an appraiser's experience is not sufficient to meet USPAP requirements for credible assignment results:

2025-01: Using Experience as Support for Adjustments
Question: If an appraiser is competent to perform a specific assignment, and has
extensive experience in that type of assignment, can they support an adjustment
for a property's proximity to a park solely based on that experience?

Answer:
No, experience cannot be a recognized method or technique or a substitute for
relevant evidence and logic. Adjustments are a type of assignment result and
must meet USPAP’s requirements for credible assignment results.

 

[NC Appraising]

.......
The survey method a recognized appraisal technique based on re agents experiance, thoughts and personal experiences.

But the appraisers experiance is worth nothing.

I know why......it is what it is, just find it a Lil hypocritical.

Skippy screws up everything.

 

[Elliott]

I take that to mean, 'you should never say you based an adjustment on experience.'

AI Perplexity:

Here are some alternative ways to express that you did something based on experience:
1. Empirically: This means based on observation or experience, often used in scientific contexts.
2. Experientially: Refers to something learned or done through personal experience.
3. Pragmatically: Implies a practical approach based on experience.
4. From past experience: Clearly states that your actions were informed by previous events.
5. Based on past dealings: Suggests that your actions were influenced by previous interactions or experiences.
6. Extrapolatively: Means drawing conclusions or making decisions based on past experiences.
7. A posteriori: Though more formal, it refers to knowledge derived from experience rather than theory.
8. Intuitively: While not strictly based on experience, it implies a gut feeling that might be informed by past experiences.
These phrases can be used in various contexts to convey that your actions or decisions were influenced by your experience."

 

[timd354]

.......
The survey method a recognized appraisal technique based on re agents experiance, thoughts and personal experiences.

But the appraisers experiance is worth nothing.

I know why......it is what it is, just find it a Lil hypocritical.

Skippy screws up everything.

I don't believe that a survey of one market participant used to support an adjustment would be a credible assignment result whether the person surveyed was a real estate agent or some other market participant (like an appriaser). However, I do think that a survey of multiple market participants (i.e., 5 - 10 or more participants) that included a combination or real estate agents, investors, and/or other appraisers could lead to credible result.

However, your observation that skippy screws up everything is basically correct.

 

[Fernando]

But I did so well with my decades of experience in adjusting based on my experience and using Appraiser's judgement. Oh well.

 

[Mark K]

2025-01: Using Experience as Support for Adjustments
Question: If an appraiser is competent to perform a specific assignment, and has
extensive experience in that type of assignment, can they support an adjustment
for a property's proximity to a park solely based on that experience?

Answer:
No, experience cannot be a recognized method or technique or a substitute for
relevant evidence and logic. Adjustments are a type of assignment result and
must meet USPAP’s requirements for credible assignment results.

Judges accept expert's experience (this includes appraisers) every day. That's why they're called experts. Personally, I think that judges better understand appraising than the bureaucrats that force USPAP on appraisers.

 

[NC Appraising]

I don't believe that a survey of one market participant used to support an adjustment would be a credible assignment result whether the person surveyed was a real estate agent or some other market participant (like an appriaser). However, I do think that a survey of multiple market participants (i.e., 5 - 10 or more participants) that included a combination or real estate agents, investors, and/or other appraisers could lead to credible result.

However, your observation that skippy screws up everything is basically correct.

Having some fun here....


It states
has extensive experience....

Not just one job.

Similar to only asking one realtor. But, what if your in an area with only one realtor that has years and years selling homes in the area? Rural market. Or are the only realtor with experience for this particular issue?

That being said, if you have extensive experience...why just not include the data? What, dog ate your homework. Lol.

 

[DWiley]

Judges accept expert's experience (this includes appraisers) every day. That's why they're called experts. Personally, I think that judges better understand appraising than the bureaucrats that force USPAP on appraisers.

I was once involved as an expert witness in a case where I opined a site value of $900,000 - based on recent sales on the same street and one street over.

The other appraised stated that he found no site sales, but "based on his experience" the site value was $600,000.

Care to guess what value the judge went with?

 

[Fernando]

I was once involved as an expert witness in a case where I opined a site value of $900,000 - based on recent sales on the same street and one street over.

The other appraised stated that he found no site sales, but "based on his experience" the site value was $600,000.

Care to guess what value the judge went with?

When I know there will be a second appraisal on subject property, I make sure I have to be more convincing to the reader that my appraised value is correct.

 

[Joe Flacco]

Qualitative analysis is a recognized appraisal technique. Adjustments are not even required.