Hybrid Appraisals

[djd09]

Oh.. I agree.. it's not a good idea but, it is allowed and complaining about in in a forum does nothing to change it.

if we did what the crooked banksters have done...there would be no light of day for us

 

[djd09]

No one is expressing complaints. This is an appraiser forum, and we are discussing issues related to appraisals.

didn't that AMC appraiser whistleblower get like 50 million or so....

 

[DWiley]

View attachment 98390

I will pose the same question I have asked before, are you equally concerned about the appraisers who are convicted felons, yet still go into homes? That happens every day. I know because when I worked at the AMC we regularly found appraisers with felony convictions. That is why AMCs require independent background checks. Each year we would find 5 to 10 such cases.

 

[DWiley]

Who decides what data to collect about the property at the inspection? Who determines the scope of work for the inspection? All these posts and no one can answer?

The data to be collected is spelled out in the UPD (uniform property data set). The data collector uses an app to collect the data, and just like your appraisal reports are run through the UCDP to check to see that all required fields are present, the property data report is run through a system to make sure that it has the required data.

Uniform Property Dataset

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sf.freddiemac.com

Have you ever seen a GSE PDR? If not, I think you would be surprised how much information they contain.

 

[DWiley]

What about all the subjective opinions that are developed during the appraisal inspection?

And how to you develop those opinions when doing a proposed home? Do you take the plans/specs out to the site and develop those opinions there? No. You read the plans and specs, and from that info you develop an opinion about the proper quality rating, while sitting in your office, no? Plans/specs is the original hybrid appraisal.

The fact that you have historically conducted two activities while on site (collecting data and forming opinions based on that data) does not mean those things have to be developed on site or at the same time. And what about all the third party data on the subject you use now? And all the third party data you use for the comps? If you truly believe what you post about assistance, have you been citing the tax office as having provided assistance all these years? And do you cite the listing agent for the comps? If you have not been citing those as assistance, then it makes your claim that collecting data on the subject is assistance seem a little disingenuous.

 

[CGinMN]

I mean, the guy orchestrated an armed robbery of a Brinks truck which he was hired to protect.

Besides, the question for any lender or consumer isn’t “which would be more appalling?” It is, who is more likely to commit a crime of opportunity in someone home, licensed professional appraiser with their career serving as a deterrent, or Harry the can collector delivering chipotle bowls in between PDRs?

 

[CGinMN]

As a lender that actually cares about your customers, their families, and your brand, the answer is obvious. The whole reason the Paschal Uchendu incident came to light was because Heaslet at the VA took a stand and said no, we are not having these randos go into our Vets homes.

 

[RCA]

Let's break this down into two parts for AF:

PART I:

Me: What is the exact definition of a "Standard?" Is a standard in general meant to guarantee anything at all?

Grok-3: "Let’s break this down.

Exact Definition of a "Standard"

In the context of something like USPAP (Uniform Standards of Professional Appraisal Practice) or similar frameworks, a "standard" is a formalized rule, guideline, or principle established by an authoritative body to ensure consistency, quality, and reliability in a specific practice or profession. Specifically, within USPAP, a "Standard" refers to one of the numbered sections (e.g., Standards 1 through 10) that outline the requirements for developing and reporting appraisals or other valuation services. Each Standard is accompanied by "Standards Rules" that provide detailed, binding instructions.

For example:

• USPAP Standard 1: Governs the development of a real property appraisal.
• USPAP Standard 2: Governs the reporting of that appraisal.

More broadly, the term "standard" comes from the Old French estandart, meaning a rallying point or flag, and evolved to signify a benchmark or measure of quality. In modern usage, a standard is a documented expectation—think of it as a yardstick against which performance or outcomes are judged.

Is a Standard Meant to Guarantee Anything?

Not exactly. A standard doesn’t guarantee an outcome in the sense of promising perfection or absolute success. Instead, it’s designed to:

1. Establish a Baseline: It sets a minimum level of acceptability for processes, ethics, or results.
2. Promote Consistency: It ensures practitioners follow a uniform approach, reducing variability.
3. Enhance Credibility: By adhering to standards, the work is more likely to be trusted by users (e.g., clients, courts, regulators).
4. Mitigate Risk: It provides a framework to avoid errors or misconduct, though it can’t eliminate human fallibility entirely.

However, compliance with a standard doesn’t mean the result is flawless or immune to challenge. For instance, in USPAP, following Standard 1 ensures an appraisal is developed systematically, but it doesn’t guarantee the appraised value is "correct" in an absolute sense—market conditions, data limitations, or judgment calls can still lead to disputes. Standards are more about process than perfection. They’re a safeguard, not a warranty.

In general, standards (whether in appraisal, engineering, or elsewhere) aim to balance practicality with professionalism. They’re less about guaranteeing a specific result and more about ensuring the method behind it is defensible and reproducible. Does that clarify things, or do you want to zoom in on a particular angle?

 

[RCA]

PART II:

ME: USPAP is considered a "standard" by many, but do you think that it actually "ensures" consistency, reliability in appraisal?

Grok-3: USPAP is indeed widely regarded as a "standard" in the appraisal industry—it's the go-to framework in the U.S. for establishing how appraisals should be conducted and reported. But does it actually ensure consistency and reliability? That’s a fair question, and the answer is nuanced: it does to a significant extent, but not perfectly or universally. Here’s why.

USPAP is considered a "standard" by many, but do you think that it actually "ensures" consistency, reliability in appraisal?
USPAP is indeed widely regarded as a "standard" in the appraisal industry—it's the go-to framework in the U.S. for establishing how appraisals should be conducted and reported. But does it actually ensure consistency and reliability? That’s a fair question, and the answer is nuanced: it does to a significant extent, but not perfectly or universally. Here’s why.
How USPAP Promotes Consistency and Reliability

1. Uniform Rules: USPAP lays out clear steps—like Standards 1 and 2 for real property appraisals—that appraisers must follow. This reduces randomness. If two appraisers tackle the same property with the same data, USPAP’s structure pushes them toward similar processes (e.g., identifying the problem, collecting data, analyzing comparables), which should narrow the gap in their conclusions.
2. Ethical Backbone: The Ethics Rule demands independence, objectivity, and impartiality. This curbs appraisers from skewing results to please clients, boosting reliability.
3. Transparency: Requiring detailed reporting (e.g., scope of work, assumptions) means outsiders can scrutinize the appraiser’s logic. This accountability incentivizes consistent, defensible work.
4. Training and Enforcement: Appraisers must take USPAP courses regularly, and state boards can discipline noncompliance. This keeps the profession aligned over time.

Data backs this up indirectly: USPAP-compliant appraisals are accepted by federal agencies, courts, and lenders (e.g., Fannie Mae, Freddie Mac), suggesting a baseline trust in their consistency and reliability. Without USPAP, the wild west of valuation would likely produce far more erratic results.

Where It Falls Short

1. Subjectivity Remains: Appraisals aren’t pure math—choosing comparables, adjusting for differences, or interpreting market trends involves judgment. Two USPAP-compliant appraisers can still arrive at different values for the same property. Studies (like those from the Appraisal Institute) show value variances of 5-10% aren’t uncommon, even under USPAP.
2. Compliance Isn’t Uniform: Not every appraiser follows USPAP to the letter. Some cut corners or misinterpret rules, and enforcement varies by state. A 2022 report from the Appraisal Subcommittee noted inconsistent disciplinary actions across jurisdictions, weakening the "ensuring" part.
3. Data Dependence: Reliability hinges on the quality of data an appraiser uses. USPAP can’t fix bad inputs—garbage in, garbage out. If local market data is sparse or unreliable, consistency across appraisals suffers.
4. Hybrid Appraisals and Tech: As we discussed earlier, hybrid appraisals—allowed under USPAP if done right—introduce third-party variables. This can dilute consistency if the appraiser leans too heavily on unverified inspections.

Does It "Ensure"?

"Ensure" implies a near-guarantee, and USPAP doesn’t quite get there. It’s more like a sturdy guardrail than a locked gate. It greatly improves consistency and reliability compared to having no standard—imagine appraisals without any rules—but it can’t eliminate human error, interpretation, or external factors. Think of it as a system that enables good outcomes more than it enforces them. Its effectiveness also depends on the appraiser’s skill and integrity, which USPAP can guide but not control.
In my view, USPAP is a damn good tool for what it’s meant to do—standardize a messy, subjective field—but it’s not a magic bullet. If you’re digging into a specific appraisal or issue with USPAP, toss me the details, and I’ll sharpen the focus!

1. Uniform Rules: USPAP lays out clear steps—like Standards 1 and 2 for real property appraisals—that appraisers must follow. This reduces randomness. If two appraisers tackle the same property with the same data, USPAP’s structure pushes them toward similar processes (e.g., identifying the problem, collecting data, analyzing comparables), which should narrow the gap in their conclusions.
2. Ethical Backbone: The Ethics Rule demands independence, objectivity, and impartiality. This curbs appraisers from skewing results to please clients, boosting reliability.
3. Transparency: Requiring detailed reporting (e.g., scope of work, assumptions) means outsiders can scrutinize the appraiser’s logic. This accountability incentivizes consistent, defensible work.
4. Training and Enforcement: Appraisers must take USPAP courses regularly, and state boards can discipline noncompliance. This keeps the profession aligned over time.

Data backs this up indirectly: USPAP-compliant appraisals are accepted by federal agencies, courts, and lenders (e.g., Fannie Mae, Freddie Mac), suggesting a baseline trust in their consistency and reliability. Without USPAP, the wild west of valuation would likely produce far more erratic results.

Where It Falls Short

1. Subjectivity Remains: Appraisals aren’t pure math—choosing comparables, adjusting for differences, or interpreting market trends involves judgment. Two USPAP-compliant appraisers can still arrive at different values for the same property. Studies (like those from the Appraisal Institute) show value variances of 5-10% aren’t uncommon, even under USPAP.
2. Compliance Isn’t Uniform: Not every appraiser follows USPAP to the letter. Some cut corners or misinterpret rules, and enforcement varies by state. A 2022 report from the Appraisal Subcommittee noted inconsistent disciplinary actions across jurisdictions, weakening the "ensuring" part.
3. Data Dependence: Reliability hinges on the quality of data an appraiser uses. USPAP can’t fix bad inputs—garbage in, garbage out. If local market data is sparse or unreliable, consistency across appraisals suffers.
4. Hybrid Appraisals and Tech: As we discussed earlier, hybrid appraisals—allowed under USPAP if done right—introduce third-party variables. This can dilute consistency if the appraiser leans too heavily on unverified inspections.

Does It "Ensure"?

"Ensure" implies a near-guarantee, and USPAP doesn’t quite get there. It’s more like a sturdy guardrail than a locked gate. It greatly improves consistency and reliability compared to having no standard—imagine appraisals without any rules—but it can’t eliminate human error, interpretation, or external factors. Think of it as a system that enables good outcomes more than it enforces them. Its effectiveness also depends on the appraiser’s skill and integrity, which USPAP can guide but not control.

In my view, USPAP is a damn good tool for what it’s meant to do—standardize a messy, subjective field—but it’s not a magic bullet. If you’re digging into a specific appraisal or issue with USPAP, toss me the details, and I’ll sharpen the focus!''

ME: WRT to hybrids being in compliance with USPAP, that is kind of a silly question, - I think.

We can just wait for capable, competent and objective robots to take over inspections. That is just fine with me. But $50k-$80K/year for a robot, plus a $100K/year human supervisor, may or may not be a good deal. It could work. And if it does perfect job, it would be worth the money.

Let's make a prediction at the end of 2028.

 

[NC Appraising]

Sorry to offend anybody, but we need to stop using the liability BS for hybrids.

We are pissed becuse many appraisers are out of work, can't pay their bills or their mortgage, while re agents and others are being paid to do our job.

IFAs are being replaced by large national firms that crank out hybrids. You have every right to be pissed. Just like when a factory shuts down and moves to China. No different. Private equity firms and large corporations crushing small businesses.

We are the ants and will be crushed.

Then you get emails like this....
My name is , Director of People Operations at True Footage, the largest residential appraisal company in the US. We are coming to your area and are looking for top appraisers to join our team. We are the owners of Spark and Synapse, the best data analytics and adjustment technology on the market, and provide top appraisers with a list of high paying direct customers.