Please post your definition of "credible" as it relates to appraisals and USPAP.
The definition is taken out of context for just about every Appraisal and review, especially for the status quo that is the client in most cases, in my eyes. USPAP, the entire book has been taken out of context on the same note; so, rubber stamped Appraisals are credible to the intended user, so the purpose can concur with the intended use. The "credibility" with regard to Real Estate Appraisal(s) is stretched to concur with whatever the LO/MB and other status quo clientele make it out to be. As long as the estimate is credible for their agenda, then it's ok. Unfortunately, it's not OK for the economy.
Every word in the dictionary and every book known to man may be manipulated. Perception is stronger than money; most of the time perception controls the medium for exchange. Reasoning with logical
economic evidence is credible to me. USPAP is not well written and does not mean squat to no one outside the Appraisal profession; that's credible enough for them.
But, when a person cares about the economy and practice methods that relate to Appraising real estate, the word credible takes on a logical meaning. It's actually meaningful and understandable; if the Appraisal is explained properly in an economic manner (verbiage).
A credible
opinion based on economic study is more important than an illusionary estimate.
An estimate is just a number and a number only. An opinion however, are words that can change the perception of the estimate for the purpose of the intended user's use; it just doesn't work that way and, that's not credible overall, as a whole.
An opinion being expressed, as explained above, is what makes an Appraisal credible. Knowing something tomorrow, when I think I finished an Appraisal, can change the entire perspective of my opinion. The scope of work is an ongoing process (but since there is a due date, they may get a lesser, credible opinion of an estimate - pre-determined due dates may create an un-credible opinion of value, due to it's time). Just because the estimate is this zzz amount, doesn't really mean anything without an opinion of it. The estimate may be reasonable to a LO/MB, but the opinion may state otherwise. Unfortunately, rubber stamps and in-ept (posers) don't use an opinion, they are the status quo's *****s, whom don't have an opinion; the reporting is setup with "prop" wording (verbiage) that has no economic creativity nor relevance; they don't know that they even are worthy of an opinion.
The source of human capital, from which the opinion is derived from, is more important than shopping around for low bidders and posers.
The word, "credible" as it relates to USPAP, may be too broad to explain, due to the so-called flexibility (abuse) of the scope of work. The Scope of Work rule is already being manipulated. Once USPAP, the in-epts and *****s are manipulated, the perception of credible is twisted for the negative, not the positive. Perception can go both ways, "good or bad".
If 75% of America decides that the dollar is not worthy of belief just because they don't like George W. Bush, that gives the perception that the dollar is weak, therefore, the opinion of the majority is credible enough to destroy the economy due the abuse of the dollar (not caring!). The value of inflation may rise, even though the actions of economic agents show that the dollar is important; because that's all they have to work with when it comes down to a medium of exchange.
Without an
opinion of value from the source of human capital, the medium of exchange does not exist, unless trade/barter/assumptions are planted. However, LO/MB's and other status quo clientele aren't interested in the opinion nor how credible an opinion is, there interest is getting a medium of exchange they can sell and then, the secondary market can trade it/and someties sell off. The opinion is forgotten, the complexity is hidden, the credibility of it all is a twisted perception that sits at the back of the bus.
Clients/Intended users are interested for what their belief of the estimate should be. USPAP has no significant role to anyone outside the Real Estate Appraisal world. If it's credible to the client, then the estimate is credible. lol - but what's so funny, a credible
opinion of an estimate could change the entire perception of the value, but they don't care.
Credibility is dumbed down by the minimum requirements of USPAP and the manipulation of the scope of work rule. The estimate is not a value; a credible opinion, competently and economically explained, is a value; and the estimate in terms of dollars (medium of exchange) is the reflection of such.
I went to a high school reuinion and two of my classmates were a LO/and an Appraisal reviewer at a bank. They both told me they know what a rubber stamp Appraisal was, and that's what they target. They even insisted that they don't want to work with me due to the fact that I spoke of economics and the credibility of the opinion of value. It turned them off. They even knew that USPAP doesn't require many things and that's what they want: un-credible reports with the verbiage that will sell within the status quo process. they were open about it. The word
credible to them meant, "a sale". No matter what. They even noted that Real Estate Appraisers are basically worthless and in the way of the process. Ironically, they also said that they kiss their Appraisers' @$$ to get what ever was needed to get the loan through.
Credibility to the home owners and consumers I pick up as clients understand what that word means for the given purpose. They look at me with a dumb expression, or as if I think they are dumb; by asking them questions similar to yours, Mizz Pam; they appeared insulted that their common sense were in doubt.
I question home owners: what would be more credible to you, "a careful observation no matter what the estimate was, or a rubber stamped appraisal and an appraisal from someone whom doesn't understand economic reasoning and logic"? Overwhelmingly, they voted a careful observation. And.., they are angry when they find out their home or property may be over valued, then of course their equity sold, and then being dismissed, left "wanting".
Those property owner's intentions vs' the status quo clientele perceptions/and or views of the Appraisal and the process it's involved in; the home owner's are more credible than the status quo. Common sense has a lot to do with credibility. But common sense doesn't have a chance when credibility is hidden and pushed aside for the benefit of an un-credible sale.
Timing has a lot to do with it: for example, yesterday a consumer thought he/she knew everything about a home they purchased, but one month later they will find out by a credible source they were duped into a sale that is now considered, "not worthy of belief". Oh no! - what to do? they flip it with skippies and posers. They have to get that sale and therfore, inflation is reported and the perception of credibility is thrown out the window. Where was the logic and reasoning in the first place? The estimate was there, but the opinion is hidden (the economic reasoning of logic based on facts and common sense).
The economy as a whole is not credible, "worthy of belief", and the perception is in shambles/split. Inflation is more dangerous than what some may think. The interest rate is only being used as a perceptive tool right now. But, it asists inflation, in my eyes.
No one runs the economy, it's too complex. But it can be explained to an extent for helpful, credible, purposes.
The (status quo)
use of the estimates are not worthy of belief, in my eyes; many opinions are worthy of belief from the proper human capital, but the way the estimates are used are far from credible.
JP Morgan Chase Bank has reduced our fees. My average residential Appraisal report is between 40 and 45 pages long and I think that is very short. $292 is what they want my mentor and I want to split now. You want to know how credible my reports are going to be? Think about it...
I have better things to do with my time to kiss JP's @$$ when I get certified. They better start kissing mine, and paying for what it's worth, soon! Their clients will become my clients and they will be reduced to only an intended user with detailed instructions from the client of the Appraiser.
That's a credible process with a real fee. And if my reports won't be accepted, I'll just turn that issue into my state board and complain/argue how credible my Appraisal is vs' their gold prize skippy located on McArthur Dr.
Sincerely,
And thanks for listening to my opinion
