AQB's latest dumbing down by 'Stakeholders' Dropping the College Degree Requirement

[George Hatch]

On what basis would Zillow's application be rejected? Do they meet the qualifying criteria or not? Because contrary to Mr Miller's fretting, membership is not limited to companies that are " NOT an appraiser or appraisal provider."



Does Zillow have an interest in valuation? Apparently so. Now what?

 

[Dublin ohio]

Standards I – Sponsored By Zillow​

BY JONATHAN MILLER · PUBLISHED NOVEMBER 9, 2020 · UPDATED JU

My appraisal firm is a member of the Industry Advisory Council (IAC) of the Appraisal Foundation (TAF). I’ve presented to IAC in Washington and the people I’ve met at IAC are great. Before I get to Zillow, here are my thoughts about the structure of the TAF councils:

IAC = Pay to Play. In order to see how the sausage is made, members pay $2,500 per year to buy access to TAF executives, board chairs, and various staff. Members pay their way to the IAC meetings across the county, probably spending $10k to $15K annually. I only attended the meetings when they were in DC but each of those trips cost me about $1,500 round trip. I am not making the argument here that these companies shouldn’t have access to TAF, but it shouldn’t be on a pay to play basis. It is corporate elitism at its worst.

TAFAC = free. The other council is for private organizations, trade groups, individuals, and government agencies. There is no fee for these members, just travel costs. More importantly, TAFAC has wasted more than a decade with the bitter feud between Dave Bunton and the Appraisal Institute. But now, as Kelly Davids has said, AI and TAF are going to make beautiful music together?

I have mixed feelings about the set up of these two councils. How can a publicly accountable organization like TAF, require a fee from the private sector? Is ‘pay to play’ really appropriate for a non-profit that has government oversight?

In addition, the IAC is comprised of many AMCs, National mortgage companies because they can afford the costs. My firm’s membership appears to be an outlier in that regard.

Let’s Look At Zillow as a new IAC member

Here are some additional thoughts on Zillow’s IAC membership:

• Zillow seems to be using TAF to build credibility as a valuation source when its valuation reputation is poor. TAF just wants the money.
• Zillow seems to be the only IAC member that is NOT an appraiser or appraisal provider. TAF just wants the money.

And the most important consideration for IAC’s mistake in judgment is that because Dave Bunton is steering TAF away from accepting ASC grant money as Congress intended, they will become much more dependent on funds from other sources such as IAC members and Corporate sponsorships, continuing to shift away from their mission.

The Zillow decision and TAF’s actions are completely inappropriate for an organization that is supposed to protect the public trust.

I Can See It Now: “Standards I – Sponsored By Zillow”

Yesterday I received this feedback from TAF/IAC: The voting process was completed for Zillow Group and they were approved as an IAC member with the

appraisersblogs.com

hey Frank...pay to play

So how much did Zillow pay to be on the IAC?

 

[djd09]

i bet zillow has some vested interests in appraisal qualifications and standards...not sure why

 

[Surf Cat]

Speaking of Dennis DeSaix. When I have a question about appraisal theory I reference his posts I have saved from this forum and his published works more than I do other content. Especially, highest and best use. He wrote a great article for Appraisal Today in 2014.

Dennis DeSaix was awesome. Always willing to help, positive and as you mentioned, a good writer

 

[djd09]

Case dismissed by judge​

The case went before a federal judge in Chicago and was dismissed on August 23rd on the grounds that Zestimates are a mere “starting point” that are unlikely to confuse homebuyers.

U.S. District Judge Amy St. Eve stated: “Zestimates are not false, misleading, or likely to confuse. The word ‘Zestimate’ – an obvious portmanteau of ‘Zillow’ and ‘estimate’ – itself indicates that Zestimates are merely an estimate of the market value of a property.”

She further noted that Zillow has labeled the estimates clearly as estimates and includes information on its site detailing the ways in which the estimates can be inaccurate.

Judge Amy St. Eve also dismissed with prejudice the notion that Seattle-based Zillow violated the Illinois Real Estate Appraiser Licensing Act. This means the claim may not be brought before the court again.

The judge indicated that the plaintiffs could attempt to replead three other claims, including one for Zillow’s purported invasion of privacy for posting home values without permission.

The plaintiffs​

The lawyer for the plaintiffs Barbara Andersen said her clients are looking into amending the complaint. “Zillow has unilaterally imposed its opinions on the value of homes without the consent of homeowners,” she stated. “It impairs people’s ability to sell their homes because the estimates do not comply with recognized appraisal standards, and some are way too low.”

Zestimate Lawsuit Dismissed - Why Judge Ruled for Zillow

The widely watched lawsuit against Zillow for their "Zestimate" home estimate tool has been dismissed. Here is why the judge ruled in favor of Zillow.

www.fausettlaw.com

i would like to see just one zillow USPAP compliant appraisal...eh, georgie?

 

[George Hatch]

Do you understand what the difference is between "an interest in valuation" as is TAF described that qualification for membership on the IAC vs "provides appraisals" as Mr Miller was fretting? By noting that their AVM isn't an appraisal (and thus the workproduct itself not being subject to SR1/SR2) he is indicating that he understands the difference.

Mr Miller even recounts the manner in which the members of the IAC voted WRT Zillow's application to join the IAC. He also explains his reasoning for voting against; an explanation that will make sense to a lot of appraisers. And which reasoning I wouldn't necessarily disagree, in principle.

 

[djd09]

you cannot provide one zillow USPAP compliant appraisal...correct?

 

[George Hatch]

Nobody said that they did, including me. What I'm telling you is that WRT membership on the IAC it is literally irrelevant whether they do/don't because "provides appraisals" isn't the requirement. Which you would understand if you weren't arguing in bad faith.

 

[George Hatch]

But since you're going to continue with this stupid argument independent of the facts about IAC membership anyway I will direct your attention to the point that the ASB published a AO on appraiser's usage of AVMs many years ago. Long before Zillow or Trulia came along. AO-18 dates back to 1998. That's how far back the ASB committed to the point that an appraiser using or operating an AVM will be engaged in appraisal practice under certain circumstances, at which point the entire front half of USPAP is applicable to their actions.

Like it or not, what AVM operators and accountants and property managers and RE brokers and a bunch of other occupations do falls under the broad definition of "Valuation Service", of which "appraisal practice" by individuals acting as appraisers is a subset, which that's where USPAP comes in. Not just for appraisal and appraisal review. So when TAF benchmarks "interest in valuation" as the qualifier for IAC that isn't just some slip of the tongue on their part or some accidental loophole that anyone is exploiting.

For however long Zillow and others have participated on the IAC the ASB has not altered their take on it in AO-18.

 

[djd09]

i perform USPAP compliant appraisals...not zillow...but there they are...like a fox guarding a hen house...next they will let the too big to fail crooked bankster write the so called standards...for the public trust