New USPAP Q&As published March 6, 2025

[Mejappz]

Maybe, maybe not. Sometimes the client is at fault, but sometimes the client does not understand the results because the appraisal report is crap.

IIf the appraisal report is crap they should avoid ordering from that appraiser, but we understand how the industry operates. I recently submitted a report that includes a 15-page addendum explaining how the adjustments were calculated. However, the first response I received was, "Why didn't you adjust for this feature?" Well, if you had read the report, the answer is provided there.

 

[timd354]

The problem with what he is arguing is that he is saying that based on cert 9 in the URAR, all differences require quantitative adjustments with data and evidence.

I take issue with his assertion that "adjustments" = quantitative adjustments, that it has always been quantitative adjustments, and if you were not making quantitative adjustments for all differences then you have been doing it wrong the whole time.

Go back and re-read my posts. I am not making the argument that all differences require an adjustment. However, per Cert #9, of the URAR, if you are using that form to report your appraisal, you are affirmatively certifying that "I have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject property and the comparable sales."

To me that does not mean you have to adjust for every single difference between the subject property and the comparable sales, but you most certainly have to make an adjustment (even if that adjustment is zero) for significant difference in property attributes that that are significant drivers of value in that market, otherwise, you have signed a false certification. Again, I did not write the cert. and I am not the one signing it in your reports.

In any case, the assertion that there is any such thing as a qualitative adjustment that can be made to the comparable sales is a demonstration of a basic misunderstanding of the terms "quantitative" and "qualitative" and the definition of what an adjustment to a comparable sale actually is.


See the below definitions pasted directly from The Dictionary of Real Estate Appraisal. I would also suggest that some of the people reading this thread should take the time to read the appropriate sections of The Appraisal of Real Estate that discusses these topics as there seems to be a misunderstanding of these topics and terms among some of you.

 

[timd354]

oops, double posted

 

[Fernando]

In the old days, when I review an appraiser and it's terrible, that appraiser would be on my "watch" list. Not to be use.
GSE is making effort to help licensed appraisers do better job in appraising.
Should let incompetent ones not able to do a good appraisal report be "blacklisted" by clients.

 

[Mejappz]

Another problem is the client needs to be educated. When you're using sophisticated techniques as I am, they won't understand and it's not my job to educate them. I don't think that it's even possible for the most part, they're stupid, especially the so-called chef appraisers.

 

[Fernando]

When appraisers put abstract/technical explanations for reader too difficult to follow and understand, that's the fault of the appraiser in conveying a convincing report.

 

[Joe Flacco]

Another problem is the client needs to be educated. When you're using sophisticated techniques as I am, they won't understand and it's not my job to educate them. I don't think that it's even possible for the most part, they're stupid, especially the so-called chef appraisers.

It is your job to educate them if you are using techniques they do not understand because USPAP requires the appraisal report to be meaningful to the intended user.

 

[Mejappz]

It is your job to educate them if you are using techniques they do not understand because USPAP requires the appraisal report to be meaningful to the intended user.

That's what the 15-page addenda is for.

 

[Joe Flacco]

Go back and re-read my posts. I am not making the argument that all difference require an adjustment. However, per Cert #9, of the URAR, if you are using that form to report your appraisal, you are affirmatively certifying that "I have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subjectproperty and the comparable sales."

To me that does not mean you have to adjust for every single difference between the subject proeprty and the comparable sales, but you most certainly have to make an adjustment (even if that adjustment is zero) for signficant difference in proeprty attributes that that are signficant drivers of value in that market, otherwise, you have signed a false certification. Again, I did not write the cert. and I am not the one signing it in your reports.

In any case, the assertion that there is any such thing as a qualitative adjsutment that can be made to the comparable sales is a demonstration of a basic misunderstanding of the terms "quantiative" and "qualitative" and the definition of what an adjsutment to a comparable sale actually is.


See the below definitions pasted directly from The Dictionary of Real Estate Appraisal. I would also suggest that some of the people reading this thread should take the time to read the appropriate sections of The Appraisal of Real Estate that discusses these topics as there seems to be a misunderstanding of these topics and terms among some of you.

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You are better off specifying in the new forms quantitative adjustments rather than trying to argue that "adjustments" in the URAR cert = quantitative adjustments and has always meant quantitative adjustments. Adjustments in appraisals have ALWAYS been either quantitative or qualitative.

Are you one of the people working on the new forms?

 

[Fernando]

That's what the 15-page addenda is for.

Do you read the long pages of terms and conditions from companies protecting their as*?
15 page addenda appear to be way of appraiser "hiding' something or not being outright.