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Going to take the AQB USPAP Course

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Hi JoAnn

I am envious and jealous, you will do great

Regards

Hal
 
Appraisers are opining values, based upon arguments from the discipline of Economics. Economic theory is based partly (a large part) on the behavioral sciences, partly on Mathematics, Probability Theory, (Statistics).

I just can't wait until we live in a country where Economists have standards of practices with numbered lines and legislation incorporating them as if handed down from above, carved on stone tablets.

We have an example here of socialization of a profession in need of evolutionary thinking. The evolvement, I would rather see in a slightly more open system. There would be a better chance for the best practices and ideas to get to the top, in my opinion.

Right now, we are guaranteed group think. Maybe a bit of gorilla marketing from the inside by like minded people will make up for the relative lack of growth opportunities, typical of a closed system. That is why I share my thoughts. I know they are no where near exclusively my own. But, since I no longer appraise, I am free to present a position seeking a better operational paradigm for the valuation profession, in the long run.

The structure of the status quo severely hobbles progress, IMO. But I am glad there are volunteers willing to try and make the most of it. I tip my hat to the instructors, seasoned and newly minted.

You're concerned about group think, which is a legitimate concern. However, USPAP doesn't really get into the science (if one chooses to call it that) of appraising. It doesn't tell appraisers they have to use the URAR or how to complete a Sales Comparison Analysis or Discounted Cash Flow.


What USPAP does do is require appraisers to be honest, ethical and competent, and to provide appraisal services in a manner that is meaningful to their intended users and not misleading. Yeah, the very fact that they are standards of practice does reflect enough group think to form a group, but as far as inhibiting the progress or the flexibility of our profession I can't see any element that does that.

We do have some elements of the Ethics Rule that will slow some appraisers down in terms of conducting the business of appraising. For instance, the role of the appraiser conflicts with actions that amount to client advocacy, so we prohibit them. Because client advocacy generally involves lying to the other intended users of those appraisals the appraisal business interests that suffer cannot be considered legitimate.


There are a few hard points in USPAP which can be argued do not necessarily contribute to the appraisal process or the reporting of that appraisal. We are required to report 3-year sales histories; we are required to maintain our workfiles for 5 years. However, virtually every other hard point is oriented to what an appraiser would normally do in an assignment if they were doing what they said they were doing. We need to know what the intended use is, we need to know who the intended users are and what they require, we need to identify a meaningful scope of work within the context of the intended use; etc. If we didn't routinely do all those things we probably wouldn't be able to routinely meet the "meaningful and not misleading" tests of our "Constitution".

It's true that the failure of other competing valuation providers to adhere to USPAP does result in dilution of our market share. When an RE broker doesn't know enough about the appraisal process to understand that HBU analysis is a necessary component of developing an opinion of market value then that deficiency does translate into a diminished trust in their BPO (appraisal). Most of the time WYSIWYG with these properties, but when they do run into HBU issues they don't know enough to recognize those problems let alone deal with them. When they don't research a 3-year sales history they increase the risk of missing something about that property that might be meaningful to their intended users.

I'd assert that the very thing that separates the professional appraiser from the hack (regardless of licensure status) is their recognition of the importance of the public trust to the longevity and economic viability of the appraisal profession; and consequently, their recognition the relevance of each of the requirements in USPAP as they pertain to the public trust. Simply put, it pays for us to have and adhere to some form of appraisal standards because it's the only thing that distinguishes our valuations from the valuations of every other player in these transactions. We don't sell our valuations; we sell our assertions of ethics and competency that contribute to the credibility of our valuations.

If it were not for our profession's adoption of some form of uniform standards, regardless of their source of origin or promulgation, we would have already been overrun by the barbarian hordes of AVMs and realtor chicks.
 
Nice defense. I wish USPAP wasn't put in the position of being misused by sources of power. If there were competing standards of practice codes, chances are their core standards would be very much alike & via comparison and competition, they would evolve more quickly to address contemporary questions, etc.

It's enough for me to have raised a contrarian voice at a Kool aid fest. But now, it is time I rejoined the party and toast the new Centurians of professional appraisal standards:drinking: I couldn't find a toasting graphic.

Please consider this a toast, new USPAP certified instructors.

One question lingers:
we would have already been overrun by the barbarian hordes of AVMs and realtor chicks.

What's so bad about being overrun by Realtor chicks?:shrug:
You always said that monogramed USPAP (bag?) was a babe magnet.
 
Mentor,
Why can you put the Constitution and its amendments in your pocket? Because
its been made to fit in your pocket. Next time you go through airport security,
be sure and pull it out and when they ask to 'wand' you tell them your exempt
from unreasonble search, see what that gets you. If you'd have to include all
the US code from the US Supreme Court, 9 US District Courts, US Appealant
Courts, and a few speciality courts, you'd have to have multiple law libraries of
space.

USPAP wasn't written by appraiser. It was written by administrative lawyers
to attempt to establish a minimum standard of appraisal practice so it was
bullet proof when administered by states. It doesn't give appraisers
any 'rights' like the Bill of Right does. Its a little long, but remember,
the NFL and US Golf Association, have tombs of rulings which are
not available to the general public, and they are just simple games of
sport.
 
Elliot, this is even further off the celebratory party topic, but you would wish for a shrunken version of that numbered line copy of USPAP minus the spiral binding, should a renegade board decide to shove it up your....nose:flowers:

I am glad you reminded the party goers that the real function those numbered lines serve other interests. It is rain on an outdoor party, but a great reminder for USPAP instructors that will no doubt have regulators for an audience.

It is highly urged by myself and others that you all keep in mind and informed of overreaching deployments of USPAP by regulators, legislators, etc. Decrees in the name of USPAP, etc can run amok.

"In USPAP we trust" is a mountain too high, especially if some policy wonk or prosecutor is reading literally, line by line. I sure hope they spent a lot of time roll playing or otherwise teaching how to teach the big picture to authority figures that may be saddled with legislated or regulated tunnel vision.
 
The line numbers allow me to focus the student to the exact point. "on page U15 at line 458..." as an example. Personally, I like them as they help me. I strongly recommend my students high light the important..."thou shall and thou shall nots".

Once the class is over I doubt many will refer to the student manual so having a well marked up copy of the document is the best way for them to find answers.

As a summation...ethics, competency, scope of work, standard 1 and standard 2 are what the student needs to focus on and that is what we, as certified instructors, need to emphasize!
 
Did anyone meet two BIG guys from North Carolina. One was Allen Beatty and the other was Don Rodgers. Allen is a long time friend in my town and Don is a very fine fellow who is deputy director of the NCAB.

I believe I met them, but I am name challenged!!!! Don sounds more familiar than Allen. There were over 40 in the class!!!

Hal - Good Luck on the retake in November and let us know how you do!!! We are rooting for all of those going back the second time!!!!!!!

Thanks Serena - we'll be chatting more I would believe - and great to meet you too!

YOU CAN DO IT! :clapping:
 
Roger,

Your contrarian bent towards USPAP isn't single minded and we both know it. From what I've seen of your opinions over the years your primary aim is at appraiser licensing in general; USPAP just gets dragged into it because the state boards are compelled to use USPAP as the basis for their enforcement programs, to which you seem to particularly object.

As for the abuse of USPAP by some of the state boards, I can agree with your objections to that, but where you see that as a failure of the standards I see it as a failure of the individuals charged with enforcing those standards. I see violations of the Preamble, Ethics Rule and Competency Rule. Further, I note the same types of failures with virtually every code or law or regulation with which I am familiar. IMO, fair and effective enforcement is always the weak link.

BTW, we did have "competing codes" for a long time prior to USPAP. None of them prevailed. That's how we got the amalgamation.
 
Did anyone meet two BIG guys from North Carolina. One was Allen Beatty and the other was Don Rodgers. Allen is a long time friend in my town and Don is a very fine fellow who is deputy director of the NCAB.

I did...I believe one of them sat behind Serena and I the first day. Nice guys, if I remeber one of them was retaking the course.
 
BTW, we did have "competing codes" for a long time prior to USPAP. None of them prevailed. That's how we got the amalgamation.

I know. Heck, I spent good money on the old "AIREA" ethics/standards course. What a web of due process, for a private organization! Well, I guess it was sold by the pound.:shrug: SREA and NAIFA had similar, but competing standards of practice.

You are right, I have nothing per se against USPAP. Let's just say I really believe strongly that concentration of power (tends to) corrupt and absolute power corrupts absolutely. There are those that would wield it like a Sword of Damocles. You do not.

Thank you for making the effort to understand my position. I know I gore an ox you hold dear when I attempt to make broader, but related points.

Thank you for your long service in the seemingly endless and often times thankless mission of spreading standards based literacy.
 
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