IVS (International Valuation Standard) vs USPAP

[RCA]

The IVS is about 100 times better in 100 ways than USPAP.

1. The definitions of important issues are much more detailed and precise.

2. It avoids repetition and overlap in the content we have in USPAP.

3. The overall structure is far superior, with the ability to expand the standard into additional specific property types and methods of appraisal.

4. It has extensive definitions of many forms of value, including Market Value. I especially like "Section 104 Bases of Value":



It's a standard, you would think boring - but as I stated, very nice, concise, with detailed definitions, lacking the muddy repetition and overlaps in content in USPAP. You might enjoy reading it and pick up some new ideas. Furthermore, this standard is used around the world and is translated in 10 languages (Arabic, Chinese, Czech, Croatian, German, Hebrew, Russian, Slovenian, Spanish, Turkmen). You might even reference it in your reports - in addition to USPAP.

You might find some useful material in the IVS for your appraisals. Nothing wrong with referencing it. The Appraisal Institute has a course for the ISV.

NOTE: You will see that IVS is far more influenced by International Accounting Standards than USPAP - which is a good thing. To all outward appearances, it was designed and written by much smarter people than USPAP.

For 80 UKP (about $100) per year, you can get access to all of the IVS standards online. https://www.ivsc.org/

 

[Terrel L. Shields]

Lot of chatter about it 10 years ago. So if it is so good why is it not adopted and many countries have adopted USPAP? Because it is just more of the S O S...

 

[PL1957]

Lot of chatter about it 10 years ago. So if it is so good why is it not adopted and many countries have adopted USPAP? Because it is just more of the S O S...

Most countries use IVS and/or Red Book ...

 

[Terrel L. Shields]

NA has adopted USPAP for the most part. For every IVS appraisal done in America I suspect there is 1000 plus USPAP appraisals. We are talking RE, not personal property or business...

 

[PL1957]

NA has adopted USPAP for the most part. For every IVS appraisal done in America I suspect there is 1000 plus USPAP appraisals. We are talking RE, not personal property or business...

It’s a big wide world out there ... European, Middle Eastern and Asian investors don’t care how many USPAP appraisals are done in North America ... In most parts of the world, you’re required to meet both local standards and international standards ...

 

[RCA]

I see you're still angry about your inability to perform a land sale analysis. You're going to have problems with the fundamentals regardless of the wording of the definitions.

I see you're still angry about your inability to perform a land sale analysis. You're going to have problems with the fundamentals regardless of the wording of the definitions.

Aside from the fact that you have violated forum rules 7.a and 8.a, for which I have reported you, I do believe you have not seen a single land sales analysis I have done. (Let's see what happens, since you are a frequent violator.)

- As far as some demo documentation that is uploaded on WordPress/CloudFlare, with two dozen plug-ins to deal with, you probably have no idea of the number of things that can go wrong in uploading PDFs in such an environment. And a Demo? Is that what you are referring to? AI manuals and book "demos" have plenty of errors.

And to top it off, read the 2020-21 USPAP section on competence. "Perfection" is not expected. And especially on a CA on a 70+/- year old house that is not given any weight at all.

Your logic is often faulty when you go into attack mode. Anyone who can't see that USPAP is a piece of crap, which it is, ... well so be it. Now, I'm not saying USPAP hasn't done a lot of good over the years. But, there are NOW really stupid statements in it (SOW Acceptability Criteria is a Contradiction to the rest of USPAP [and please note the IVS avoids this by explicitly stating that the SOW must conform to IVS and nowhere implying otherwise), repetition (AO-28 has to repeat the SOW rule almost verbatim? ... We have to cross-reference all text to make sure it is saying the same thing?) and so on.

USPAP has MANY things that are ill-designed, poorly written, and illogical. It is a shame. It is a shame of the face of American Appraisal. It is a shame on the American Financial and Political systems. It is a shame to the intelligence of all.

Also, one might well argue that USPAP has loopholes that are an OPEN INVITATION to fraud, such as that idiotic statement about SOW acceptability. One that you yourself quoted to support one of your fallacious arguments some time back. So, in fact, if there is anything I am "still angry about", it is your use of that section of USPAP, which however is a glaring example of the failure of USPAP.

 

[CANative]

Aside from the fact that you have violated forum rules 7.a and 8.a, for which I have reported you,

Trying to send GH down to the penalty box in order to ascend to the catbird seat?

 

[Lee Lansford]

Interesting. But, of course, for appraisers who are licensed in the USofA, the licensing agencies use USPAP for enforcement, not IVS.

 

[RCA]

Interesting. But, of course, for appraisers who are licensed in the USofA, the licensing agencies use USPAP for enforcement, not IVS.

Make no mistake about that.

But, if you want a deep understanding of real estate appraisal, study IVS - it really is a concise summary of much of USPAP, plus enlightenment. It is what USPAP should be, for what that is worth.

But, yep, USPAP will be around for a while.

On the other hand, with increasing government debt, crypto-currency, new political forms, increasing rate of change in just about everything, be prepared for a different world.

After Trump, 2024, what awaits? Best bet: It will be very different than what you expect.

 

[George Hatch]

Bert

The ASB has a process for revising USPAP and one of the provisions of that process is that anyone can submit suggestions and reasoning for revisions. You could apply to sit on the ASB yourself and influence the content and structure of USPAP.

USPAP is the thing in licensing right now as a result of the U.S. Congress designating it so. That's subject to change or modification, and there's a process for that as well.

In any case there's nothing preventing you from adding to your assignments additional elements beyond our minimums as you see fit. All an appraisal standard does is establish a minimum below which a licensee cannot drop without being in violation of that standard. An appraisal standard does not establish an upper limit for what an appraiser can do.

As far as I understand it, if your assignment includes a requirement to also comply with the requirements of the IVS standards then it would a violation of USPAP to not meet those additional requirements in your workproduct. That is, insofar as there was no limiting conflict between the two.

And speaking personally, I'm certainly not going to criticize an appraisal which includes additional elements, nor do I think most appraisers care what accessories you add to your work. If you want to LARP as a German Valuer in compliance with the IVS in addition to complying with the minimums in USPAP then I think that is fabulous. Absolutely Fabulous.

My role with USPAP has been to teach the material; to do my best to helping appraisers understand the what and (equally importantly) the why of these requirements as they exist. My role has never extended to participating in the revision process beyond submitting a couple response to their various exposure drafts. I'm a teacher-type, not a "thought leader" like you and a couple of the other quants like to think of yourselves. Matter of fact, nowadays I'm just an informed amateur at it because I allowed my certification to teach courses to lapse.

So as a teacher-type, it's not my fault that the acceptability test in the SOWR doesn't include conforming to your opinion or to some fixed benchmark which exists in isolation of what your peers would do and what the users would expect. It's also not my fault that you never understood that test and how it works until I pointed it out to you. Its' not my fault that when you couldn't contradict the wording of the SOWR that your next step in contradicting the definitions didn't work out for you either.

I can assure you that if you had ever taken a live course from me I would have pointed all of the above out to you because that was one of the topics I always covered in the courses I taught whether it was part of that year's update material or not. Just think, you could have learned about these issues years ago when you were just starting out and then you wouldn't have been uninformed about them for so long.

At any rate, I encourage you to act according to your conscience, even if that includes militating against USPAP and how much you hate the fact that us unwashed Americans don't aspire to be European Valuers. I mean, IRL it's not as if I care what you think.