Illinois Board Issues Warning On Hybrid Appraisals

[George Hatch]

I agree that facts like year built are not assignment results. Much of what you do at an inspection is opinion and analysis, not just gathering facts. I gather facts at the office and then confirm them at the inspection.

I agree that we commonly multi-task and that using anyone else's data - even if the person was an equal partner and we were working as a team - will detract from that. But in the end it can only become using someone else's opinion IF you don't form your own opinion off of what you do see.

You telling me you think the property fits a Q3/C3 combo is great, but IRL I'm still going to look at the descriptions and pics to form my own opinion - which even if we agree it's still an example of me using my own opinion and not your opinion.

When you review someone else's appraisal report as a reviewer and you form the opinion that you agree with what you're seeing - whose opinion is it that you are expressing? Your own, right? Same as if you saw their opinion but ended up disagreeing with it.

 

[DTB]

You telling me you think the property fits a Q3/C3 combo is great, but IRL I'm still going to look at the descriptions and pics to form my own opinion - which even if we agree it's still an example of me using my own opinion and not your opinion.

The key to making it work in one sentence.

 

[Eli]

There is no substitute for inspecting the property from a credibility or reliability standpoint. Yeah, let’s be agents. We can go to the pokey and take a few lenders with us on the way.

I know the market I cover as well as anybody. But factors both internal and external to the subject change constantly.

 

[Eli]

Are AMC’s agents? Are realtors agents? Please get some common sense.

The delimma will hit soon. The licensed appraisers in high positions will say I was not acting as an appraiser. I was an agent.

 

[Eli]

Set that meeting with Tennessee Appraiser Coalition. Too scared? Lol


Call Joan. She will help you.

Home - Tennessee Appraiser Coalition

The Tennessee Appraiser Coalition (TAC)was formed by a diverse group of appraisers from across the state of Tennessee with the mission of promoting, protecting and improving the appraisal profession.

www.tnappraisercoalition.com

 

[Evincere]

One thing for sure is that Mr Weaver's personal opinions shape IL appraisal laws and regs. In the past he has been reasonable. In this case, he is using his personal interpretation of USPAP in a contrary position of many "USPAP Experts" .

As is Mr Weavers AND his State Boards right. right. USPAP experts? What constitutes an expert. instructor qualified, being a member of TAF or position on the various BODs? Infallibility because tenure?

Contrary to the opinion of many “USPAP experts”. Really? . Lawyers graduate from law school, are awarded a JD and are now considered experts in their field. Right? Now imagine, if every lawyer agreed with each other, if new opinions were never written, if decisions / opinions were never challenged, tested or fought to set precedents which create new / better laws. If stakeholders invested in monopolies were given free reign to just do as they please without restraint or oversight.

If Prosecutors and defense attorneys all thought alike and always agreed - truths would remain repressed or buried, rights would be trampled, and we’d all be up sheets creek without a paddle hoping for Unicorns to fall out of the sky’s

 

[The Bob]

USPAP also doesn't mandate that we opine on highest & best use, but when we do render an opinion, USPAP requires that our reasoning needs to be summarized.
IMO, once an inspection is called for, it becomes an appraisal practice and it needs to meet minimum standards.
And then there is this...

CONDUCT:
* must not accept an assignment that includes the reporting of predetermined opinions and conclusions;

If the inspector is opining on H&B use, quality and/or condition, those are now his/her opinions and conclusions. There is no getting around that.

 

[Eli]

USPAP also doesn't mandate that we opine on highest & best use, but when we do render an opinion, USPAP requires that our reasoning needs to be summarized.
IMO, once an inspection is called for, it becomes an appraisal practice and it needs to meet minimum standards.
And then there is this...

CONDUCT:
* must not accept an assignment that includes the reporting of predetermined opinions and conclusions;

If the inspector is opining on H&B use, quality and/or condition, those are now his/her opinions and conclusions. There is no getting around that.

Good points, but to my knowledge, a H&B use analysis is absolutely required if the definition of value is “market value”. No if ands or buts there.

I can’t reference it but trust me if the definition is “Market Value” like in a 1004, it is required.


I think “Market Value” definition from most authoritative sources is the only “value” definition where H&B use analysis is required.

They tie together. Like peanut butter and jelly.

 

[J Grant]

It sounds to me like some state boards are trying to plug the GIANT HOLE in USPAP, that of identifying an inspection done for appraisal purposes as part of appraisal practice and named as providing significant assistance. In a USPAP FAQ, an inspection is identified as significant assistance, when performed by an appraiser. Go figure. USPAP protects non appraisers who engage in what anyone with common sense can understand as appraisal practice and keeps their contribution anonymous ( by the stakeholder solution of re naming an inspection "data collection" .

USPAP has become a tool of the stakeholders in large part over the years.

 

[Evincere]

It sounds to me like some state boards are trying to plug the GIANT HOLE in USPAP, that of identifying an inspection done for appraisal purposes as part of appraisal practice and named as providing significant assistance. In a USPAP FAQ, an inspection is identified as significant assistance, when performed by an appraiser. Go figure. USPAP protects non appraisers who engage in what anyone with common sense can understand as appraisal practice and keeps their contribution anonymous ( by the stakeholder solution of re naming an inspection "data collection" .

USPAP has become a tool of the stakeholders in large part over the years.

and yet Conduct section of Ethics Rule states;

• must not advocate the cause or interest of any party or issue;

• must not accept an assignment that includes the reporting of predetermined opinions and conclusions;

Various proprietary versions of the hybrid are floating about out there and prompted as the new “30 minute” valuation wonders.

The new darlings of Lenders. And yet, there’s little to no mention or discussion in any of the promotions regarding from where or who is supplying comparable data to the Appraiser.