Going to take the AQB USPAP Course

[Mike Garrett RAA]

Just finished a 15 hour in Denver, small group and I suspect most were there as a result of disciplinary action by the state board. Compliant has it right...15 hours single instructor is difficult to say the least, especially at my age. Looks like the 7 hour coming up the 29th will be a much larger group, around 50. It's that time of the year.

I like to caption my class with..."myth busting" and "how to keep your butt out of appraiser jail".

 

[rbrienza]

To all who teach USPAP......
You all are an inspiration to me, (hopefully most of us). I hope to learn to teach it one day.... but the requirements of 7 years as an appraiser is a bit extreme. ( I understand it though.) I am of the belief that an 7 hr update course should be required every year....

Thank you

 

[Bryan Reynolds]

Congrats to all of you who passed. To those who didn't, don't worry and try again. It is to date the hardest test I have ever taken - even harded than my Certified General Exam.

I did pass both the first time I took each but walked away not knowing if I did or not. When i took the course and exam several years ago the pass rate was 30%. I have heard it improved years later to 50% but I believe that included people re-taking the exam.

Does anyone know what the pass rate is now? The last time I check there were 619 AQB Certified USPAP Instructors worldwide. Looks like the number will be increasing.

I truly believe being an active instructor has made me a better appraiser and being an active appraiser has made me a better instructor. I taught a class in Austin to approx. 75 appraisers this summer and had a blast. Thanks to ATA and The Columbia Institute for having me down.

Good Luck to all.

 

[Bob Ipock]

The 7 Hour Update MIGHT have 2 hours worth of decent material...the rest is filler to complete the 7 hours. It is a complete waste of time to talk/teach about Rules, Statements and AO's that no longer exist. This is especially confusing to new appraisers. Why talk about stuff that no longer exists and the student then has to FORGET those topics that no longer apply? Five minutes tops then move on to the new material.

Since it is a SEVEN hour update....I guess they feel compelled to make it last SEVEN hours. Too many times the instructor takes the heat for the CONTENT...over which we have no control. The "history lesson" gets a little old for students have heard it 5 or 6 times.

Instead of teaching the UPDATE, I would rather see a mandatory repeat of the 15 Hour USPAPat a minimum of once every five years. For many appraisers (myself included) USPAP will not click until you have taken the 15 hour course 3 or 4 times.

 

[Bryan Reynolds]

You make some very good points. At a recent Instructors conference one instructor said he likes to scare his students. I have never taken this approach. I do try to focus on areas that most appraisers have never done or thought of. I like for them to think outside the box (the check box that is).

The appraisal and the appraisal report are two entirely different things. Most appraisers do not realize that. When I ask how many of you have ever done a Restricted Use report the most common response is none. The residential appraiser has lost millions of dollars because they have worn blinders for too many years.

Most cannot write a report unless they have a preprinted form. I encourage all to continue their education. All appraisers should be able to write a USPAP compliant report on note book paper.

When producing an appraisal for a homeowner who needs your professional opinion what type of report option do you offer them? Most force a summary report through a URAR on them. Why do you force photos of the house he/she lives in down their throat, they know what it looks like. You mean part of the fee I paid you is for a floor plan I walk every day? Part of the fee is for you to provide me a city map; I have four in my desk drawer. You mean part of the fee went for a copy of my deed – I have the original deed. Can you just give me a professional opinion without junk I don’t need. (Most appraisers provide a URAR under all cases.

Lets all think outside the check box for a change!!!

 

[Bob Ipock]

I like to use the Internet. I go to the TAF site and show in ASB and AQB pages. Some time is spent navigating there, then on to the ASC site, state appraisal board site, banking commission site and sometimes FHA. All of that as time allows. Using real life examples of USPAP is my preference. I often hand out copies of a URAR and show them how it is designed to cover the basic principles of USPAP. 1, 2, 3,4.........the forms follow USPAP in many cases. Like it or not, the URAR is the form that the vast majority of appraisers use and need to fully understand it. Then they can move on to a Restricted Use or Self-contained and know the difference. I prefer a URAR Summary Report because it is usually the only one a typical homeowner has ever seen. THey are not going to save much (if any) if I do a Restricted Use Report. I still wan to measure and sketch and the photos will be taken for MY benefit. I can finish a URAR quicker than a Restricted Use Report because I do far more of them. I would rather discount my fee and simply use the URAR than have to fool with a restricted. That is just me, others can do it their way with no argument from me.

USPAP can be pretty dry stuff but using the Internet seems to work for me and most of the students I teach. I would rather take a beating than take the USPAP Update on line. The back and forth and Q & A between the students is what makes USPAP seem like it really does apply to appraising.

On another point. USPAP classes for real estate appraisers should only cover Standards 1-4, the Rules, The Statements and the AO's. Standards 5-10 should be taught in a separate calls for those it applies to and for others with interest in other areas. Our state board is a REAL ESTATE APPRAISERS BOARD....not mass appraisals, not personal property or business appraisal etc. Our state law only recognizes Standards 1, 2 & 3 out of the 10.

 

[Mike Garrett RAA]

It's interesting to hear others say what I have been saying for the last four years..."we need to focus on the rules, standards 1,2,3, AOs, and FAQs". With the exception of a few working in the assessor's offices around the state, I have had one person who was not a real property appraiser in either the 7 or 15 hour classes.

There were seven in the last 15 hour class and six of them were mandated to be there for remedial USPAP by the state appraisal board. One was completing the registered appraiser's 75 hour course which includes 15 hours of USPAP. I also had another instructor who just took and passed the USPAP instructor course sit in to evaluate me as an instructor. She will be teaching her first 7 hour next month in Denver. She also interviewed some of the students to determine what they thought of the course.

The consensus was...too much repetition, too boring, too dry...all the things you have just posted above. I really find that interesting considering most of the students were there because they didn't comply with USPAP. My approach was to take them back to the basics, insure they understand ethics, competency, and scope of work. We then spend a lot of time in standard 1,2 and 3.

Two of my students were certified general appraisers. One shared with the group that it has cost him over $28,000 to defend himself in a recent case, another more than $5,000. The class reminded me of an AA meeting with several sharing their problems with the group.

It was too late to scare most of this bunch; however, that approach isn't really a bad idea with those who are just becoming appraisers and taking USPAP for the first time. I like to go over what has happened over the last 6 years as far as enforcement in Colorado is concerned. I use information published by the Board of Appraisers, Real Estate Division, and the Department of Regulatory agencies.

The students see real names and many of them are people they know. They see the progression from simple "hand slapping" and minor fines to major fines, in one case $46,000, loss of license, and criminal charges. I use one personal case...a former partner of mine (with his permission). He started his own company a few years ago and ran afoul of the Board over a very simple lack of judgment in how to appraise a property. To date it has cost him about $10,000 in fines and legal fees as well as more than 40 hours of additional course work and having another appraiser review 24 of his appraisals. I think it's important for people to understand the state is not playing games when it comes to appraisal.

It is amazing how many experienced appraisers confuse client requirements with the uniform standards. Most have never really read the certifications they sign on a daily basis. I like to hand out the three pages of certifications and limiting conditions from a 1004 form appraisal. This is typically done after we have been over the rules and standards. It demonstrates how Intender Use, Intended User, and Scope of Work fits into the appraisal process and ties it all together.

While I would not go so far as to say our industry is in a state of crisis, I think you would agree we are in for a rough ride over the next few years. What can we, as appraisers, do to help with solving the problem? How can we do a better job? How do we comply with the standards and still obtain work from those who would be our clients? It starts with understanding the rules, regulations, and guidelines. It starts with knowing our limitations. It starts with understanding what we can and cannot do. Advisory Opinion 19 needs to be a focus for the 7 hour. Appraisers need to know what is fact and what is fiction and how to handle unacceptable assignment requests. I think this was the intent of the outline for 2008~2010 for the 7 hour course. It asks the question....

"Should I accept the assignment or not?".

Depending upon the size of the group much more interaction should occur. The class shouldn't be just a lecture. Discussion of hot topics and the case study should be a focus. It really should be at the beginning rather than the end. I would like to work on that in my next class...next week.

Someone said there are 619 certified USPAP instructors and the number is expanding. I would suggest only a part of that number are actively teaching. The cadre is also aging very quickly and many of us are near the end of our careers. We need to welcome those who are now "newbie" USPAP instructors.

Just some thoughts from..."The Old Guy".

 

[Elliott]

*Hand in Air* Mike, you said, "I use one personal case...a former partner of mine (with his permission). He started his own company a few years ago and ran afoul of the Board over a very simple lack of judgment in how to appraise a property. To date it has cost him about $10,000 in fines and legal fees as well as more than 40 hours of additional course work and having another appraiser review 24 of his appraisals. I think it's important for people to understand the state is not playing games when it comes to appraisal."

The first thing I did was look up and see what state you were from, Oh, Colorado,
that explains something. But, I'm curious what the 'judgement' flaw your ex-partner
made. Its never particularly useful for state boards to say the appraiser violated
Standard 2 a) and publish the fine and suspension. Much more useful for us to say, he
estimated a conservation easement on 40 acres of land to have a value of $2 million,
relying on the Income Approach and mis-development of the cap rate.

Tell us more. I swear I'm careful on every assignment, and I don't take
conservation easements, or practice burn house deductions, I even walk
away when the owner knows the value of his property and tells me so
(just not worth dealing with the crazy and the investigation he'll demand
from the state board).

 

[George Hatch]

Speaking personally, the last thing I would do is attempt to use the intimidation factor. There are a lot of appraisers who already think the sole purpose of USPAP is to provide their state boards with a flexible and inscrutable basis so the boards can play "gotcha" whenever they feel like it. Contributing to that paranoia is not a direction I want to go.

Another thing about the paranoia factor that I don't like is that it enables certain types of rationale, similar to what we sometimes see here on the forum:

- "There's no such thing as a USPAP compliant appraisal and the state boards can get you whenever they feel like it."

- "Everyone does it and anyone who says they don't is a liar and a hypocrite."

- "There's what the standards say and then there's the real world."

Etc., etc., ad nauseum....

I want appraisers to come off of autopilot and put some active thought into why they do the things they do and how they can make themselves and the services they provide more valuable to their clients. I want them to see how, if they have any interest in doing the right thing, USPAP invariably works in their favor. I want them to see that the basics in appraisal standards are very simple and straightforward - don't be unethical and don't be incompetent when acting as an appraiser. I especially want to appeal to the conceit that all appraisers have - even our donkeys - that their work is just as good as anyone else's; and use that to nudge them into our mainstream. I want to welcome our donkeys to join the mainstream and recognize that its never too late to clean up their act.

Preaching paranoia works against my goals as an instructor, which is why I try to avoid it.

 

[Michigander]

Speaking personally, the last thing I would do is attempt to use the intimidation factor. There are a lot of appraisers who already think the sole purpose of USPAP is to provide their state boards with a flexible and inscrutable basis so the boards can play "gotcha" whenever they feel like it. Contributing to that paranoia is not a direction I want to go.

Another thing about the paranoia factor that I don't like is that it enables certain types of rationale, similar to what we sometimes see here on the forum:

- "There's no such thing as a USPAP compliant appraisal and the state boards can get you whenever they feel like it."

- "Everyone does it and anyone who says they don't is a liar and a hypocrite."

- "There's what the standards say and then there's the real world."

Etc., etc., ad nauseum....

I want appraisers to come off of autopilot and put some active thought into why they do the things they do and how they can make themselves and the services they provide more valuable to their clients. I want them to see how, if they have any interest in doing the right thing, USPAP invariably works in their favor. I want them to see that the basics in appraisal standards are very simple and straightforward - don't be unethical and don't be incompetent when acting as an appraiser. I especially want to appeal to the conceit that all appraisers have - even our donkeys - that their work is just as good as anyone else's; and use that to nudge them into our mainstream. I want to welcome our donkeys to join the mainstream and recognize that its never too late to clean up their act.

Preaching paranoia works against my goals as an instructor, which is why I try to avoid it.

Excellent post George. Intimidation is not necessary or typically a good learning tool (for many). I think people are intimidated enough in classes without the help of the teacher. Thanks for this post.