New USPAP Q&As published March 6, 2025

[timd354]

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.

In Federal Courts, the opinion testimony of an expert witness is not allowed to be introduced into evidence unless the experts opinions are based upon sound scientific methodology...it is not enough for an expert witness to simply base his or her opinion on their experience. This standard came from the Daubert case, which resulted in an amendment to Rule 702 of the Federal Rules of Evidence. By the way, many state courts have similar rules of evidence regarding expert testimony. Thus, a competent judge will not allow an expert to render an opinion that is based on nothing more than his or her experince with no else to support the opinion.

Rule 702. Testimony by Expert Witnesses​

A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if the proponent demonstrates to the court that it is more likely than not that:

(a) the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;

(b) the testimony is based on sufficient facts or data;

(c) the testimony is the product of reliable principles and methods; and

(d) the expert's opinion reflects a reliable application of the principles and methods to the facts of the case.

 

[TerryRohrer]

I can't for the life of me understand how appraisers came to argue that surveying brokers or others was a form of support for any conclusion other than "I don't know." That is less justification for anything than stating, "I guessed."

 

[George Hatch]

User-driven requirements vary.

 

[timd354]

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

Yes, but qualitative analysis does not require the use of individual line adjustments. Additionally, an opinion based on qualitative analysis that was supported by nothing more than the appraiser's experience without providing any additional explanation and rationale expalaining the result of the appraiser's qualitative analysis would also fail to produce a credible result.

 

[Mejappz]

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

Those are precisely the appraisers that the AMC, lenders, and GSEs are seeking.

 

[Fernando]

When I reviewed appraisal reports from other appraisers in the past, I can remember some adjustments which didn't make sense. If it's too low, I know the value could be low. If too high, then appraised value could be too high. Good appraisers can catch it.

 

[timd354]

I can't for the life of me understand how appraisers came to argue that surveying brokers or others was a form of support for any conclusion other than "I don't know." That is less justification for anything than stating, "I guessed."

Surveying brokers and other market participants is certainly not the best method to support an adjustment when there is sufficient available sales data available to support an adjsutment, but sometimes such surveys may be the only reasonable way to provide support for an adjustment when there is a lack of other available data, which can often be the case for rural or highly unique propeties. While not great, at least it is something more than "because the appraiser says so".

 

[Joe Flacco]

Yes, but qualitative analysis doe not require the use of individual line adjustments. Additionally, an opinion based on qualitative analysis that was supported by nothing more than the appraiser's experience without providing any additional explanation and rationale expalaining the result of the appraiser's qualitative analysis would also fail to produce a credible result.

Sales comparison approach is not either quantiative OR qualitative. It is not wholly one or the other. Some differences make sense to develop quantitative adjustments and some differences make sense to consider qualitatively, depending on the situation.

Nothing credible about these adjustments being spit out by the apps that are being pushed recently.

 

[TerryRohrer]

Surveying brokers and other market participants is certainly not the best method to support an adjustment when there is actual sales data available to support an adjsutment, but sometimes such surveys may be the only reasonable way to provide support for an adjustment when there is a lack of other available data which can often be the case for a rural or highly unique propeties. While not great, at least it is something more than "because the appraiser says so".

I agree, it is something more, as in "other than". Having asked agents enough questions over the years, and having seen CMAs, I find no merit whatsoever in the exercise. But, I have never been a fan of the current notion of "support" among the appraiser community. In practice, that generally translates to "expedient", "efficient", and "profit-enhancing", often without any gains in veracity.

 

[gregb]

In my market, the selection of the Comparable Sales is the most crucial factor, with adjustments to the comparables playing way less a factor.