Modern Appraisal Language (objective vs subjective)

[djd09]

cant be independent when they are always telling you what to write...and what not to

 

[glenn walker]

Whats most scary is how appraisers have not pushed back and said no more --and filed lawsuits based on constitutional free speech rights-- If Fannie wants to enforce the speech police then they should also change their forms and certifications to state only Fannie Approved Words and labels are being used and then get prepared to defend their administrative actions and guidelines-- BUT their not because they want to be able to say we are not under USPAP so now the appraiser is doubly screwed because he is having to not follow Uniform Appraisal Standards but ones made up by a Quasi Govt Controlled Agency called the GSEs.

 

[thebean]

If you read what you posted....
Why would you consider "Or are many sticking to their old ways."

In the back on page 38 list the ever growing list of naughty words not to use in appraisals. If you have read the fall 2023 issue it will enlighten you and/or shock you. It is coming down that all appraisers will be required to take a cultural competency, biases and discrimination course. I read CA requires it. Usually what happens in CA ends up happening across the nation.

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[Surf Cat]

Look at the pattern....lender's options for valuation services gets looser (waivers, PDC's, desktops) and appraiser's rules get more restrictive (words, prove every adjustment, list comps you "didn't" use, ROV's, Fannie guidelines, lender guidelines, USPAP (which lender's don't care about).

 

[glenn walker]

In the back on page 38 list the ever growing list of naughty words not to use in appraisals. If you have read the fall 2023 issue it will enlighten you and/or shock you. It is coming down that all appraisers will be required to take a cultural competency, biases and discrimination course. I read CA requires it. Usually what happens in CA ends up happening across the nation.

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Yes I have to take in February to renew my Brokers license in CALI

 

[Terrel L. Shields]

A lack of sales in a town with a closed factory that was a major employer means SOMETHING, compared to when the factory was active and there were 30 sales a year in the town. ... "subjective", it is not subjective that is not of personal nature.

The argument made to the court was that the property had no value therefore should not be taxed because it wasn't salable due to the economy. The court observed that the opinion of a professional was superior to that of the average person because an educated guess was better than an uneducated one. They hardly are substituting their judgment for that of an appraiser.

subjective "based on or influenced by personal feelings, tastes, or opinions."

heuristic "proceeding to a solution by trial and error or by rules that are only loosely defined." ...ie- problem-solving methods that are based on experience and knowledge. "Deductive" would be the opposite. or, IOW, a quantifiable solution to a problem.

As appraisers we attempt to use as much quantifiable data as possible so we can use it as a basis for our heuristic analysis....which is by definition basically a subjective analysis from a trained observer. It is our training that differentiates our opinion from a random one. No one has a formulaic solution to the value of a property except those notoriously inaccurate ones used by Zillow, AVMs, etc.

Evaluation

The problem with that is the banks have already stolen the meaning to infer a non-appraisal performed (in theory) by non-appraisers (some states do allow appraisers to write an evaluation sans license.) Bank "evaluations" are appraisals, just by not calling them "appraisals" we put lipstick on that pig. Evaluations are non-appraisers doing non-appraisals as a substitute for a real appraisal. Sort of the property inspector model. The purpose was to allow small isolated banks to use their own employees or an RE agent to value property in the absence of appraisers; not as it turns out is done, to avoid paying for an appraisal and hurrying up the loan process.

 

[glenn walker]

The argument made to the court was that the property had no value therefore should not be taxed because it wasn't salable due to the economy. The court observed that the opinion of a professional was superior to that of the average person because an educated guess was better than an uneducated one. They hardly are substituting their judgment for that of an appraiser.

subjective "based on or influenced by personal feelings, tastes, or opinions."

heuristic "proceeding to a solution by trial and error or by rules that are only loosely defined." ...ie- problem-solving methods that are based on experience and knowledge. "Deductive" would be the opposite. or, IOW, a quantifiable solution to a problem.

As appraisers we attempt to use as much quantifiable data as possible so we can use it as a basis for our heuristic analysis....which is by definition basically a subjective analysis from a trained observer. It is our training that differentiates our opinion from a random one. No one has a formulaic solution to the value of a property except those notoriously inaccurate ones used by Zillow, AVMs, etc.


The problem with that is the banks have already stolen the meaning to infer a non-appraisal performed (in theory) by non-appraisers (some states do allow appraisers to write an evaluation sans license.) Bank "evaluations" are appraisals, just by not calling them "appraisals" we put lipstick on that pig. Evaluations are non-appraisers doing non-appraisals as a substitute for a real appraisal. Sort of the property inspector model. The purpose was to allow small isolated banks to use their own employees or an RE agent to value property in the absence of appraisers; not as it turns out is done, to avoid paying for an appraisal and hurrying up the loan process.

Simple end USPAP and State Boards and License appraisers as not being under USPAP and re-name them Evaluators or Property valuation Inspectors. Hey all these agencies can change names and labels at will anyways, Change opinion of Value to Price Estimates on certifications and bingo your done.

 

[Surf Cat]

Simple end USPAP and State Boards and License appraisers as not being under USPAP and re-name them Evaluators or Property valuation Inspectors. Hey all these agencies can change names and labels at will anyways, Change opinion of Value to Price Estimates on certifications and bingo your done.

How would you prevent the property valuation inspectors from being influenced to hit a number and or make the value? Which umbrella would the pvi's be under? NAR? A new entity? Licensure? Continuing education?

 

[glenn walker]

How would you prevent the property valuation inspectors from being influenced to hit a number and or make the value? Which umbrella would the pvi's be under? NAR? A new entity? Licensure? Continuing education?

In CA it would be taken over by the BRE former DRE -

 

[Surf Cat]

Well.....I'm all for being more marketable to all entities that need valuation services as opposed to being locked into the money grabbing AMC's as they're not a benefit to anyone but themselves. Even to homeowners, as they're the ones paying for it. The homeowners (and yes, mortgage brokers too) would have to sign an engagement letter / contract that would have a clause stating the appraiser is not to be coerced into a specific value. The homeowner in turn should be able to shop around said appraisal they paid for to different lenders. The lender's underwriter would be able to contact the appraiser for deficiencies and or inaccuracies.

I believe appraisers still need to be licensed though, have insurance, and continuing education, although 56 hours every 4 years is too much. Whichever state agency we were under would keep us in line.

I know it's a pipe dream, but appraisers should be more marketable.