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Miller's Take On A I & Evaluations

Appraisers Free of USPAP would charge how much for an evaluation?

  • $25-$75

    Votes: 1 7.7%
  • $75-$125

    Votes: 1 7.7%
  • $125-$175

    Votes: 1 7.7%
  • $175-$250

    Votes: 2 15.4%
  • $250-$350

    Votes: 1 7.7%
  • Full appraisal fee

    Votes: 7 53.8%

  • Total voters
    13
  • Poll closed .
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Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
http://www.millersamuel.com/note/april-7-2017/?goal=0_69c077008e-dfbd56e40d-120753213
Let’s be clear. When an appraiser comes up with a value, it is an appraisal. It is not a box. It is not a fox. It is not a dog. It is not a log. It’s not even green eggs and ha. It is an appraisal. That is what an appraisal is to the consumer. This applies to real estate, art, personal property, etc. The fact that AI National advocates a “flip the switch” solution to turn USPAP on or off is simply wrong and frankly, stupid.

Here’s another way of looking at it:

Appraisal value = $500,000
or (assuming it was done accurately)
Evaluation value = $500,000

Appraisal value = $500,000
or (assuming it was wrong)
Evaluation value = $700,000 – borrower and lender are exposed to risk.

Appraisal value = $500,000
or (assuming it was wrong)
Evaluation value = $300,000 – borrower didn’t get the loan they needed and the lender lost a business opportunity.

The consumer HAS NO IDEA how either value in each scenario was estimated but one thing they do know – the number is a number and the person giving the number is an appraiser. This situation is a direct violation of the public trust. AI National is making the case that the consumer understands the nuance.​
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
It's what we did in the assignment and the extent to which we disclose the limitations of what we did that makes those results usable, not the inventive and novel semantics or nomenclature we may choose to obscure our actions.

If someone looks at the average AVM or a BPO and sees a conclusion they have no way of understanding exactly what the "valuer" did or didn't do to get to those conclusions. The lack of such disclosures basically forces the reader to make unsupported assumptions about what the valuer did or didn't do.

No matter what the expectations are that the appraiser asserts and the users expects, if they're not articulated somewhere then it forces these parties to make assumptions to fill in the gaps. It's the use of those unnecessary assumptions that are unprofessional; not the usage of different appraisal standards.

It's like saying "if you really loved me you'd understand what I mean without me having to say it. "

That might work in a marriage but it's no way to run an appraisal assignment.
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Keep preaching to the choir, brothers. :flowers:
 
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