New USPAP Q&As published March 6, 2025

[J Grant]

There are two main things that make an appraiser's opinion worth someone actually paying for it: (1) the independence, and (2) the fact that it is based on evidence and logic. Without the evidence and logic, its just another opinion.

Certainly evidence and logic obtained via prior work (i.e. "experience") is part of an appraiser's tool box. But it is the evidence and logic that is the key - not the mere fact that prior work was performed. If the prior work was not performed correctly, or it is not recent enough to still be relevant, then the experience is of little value.

An appraiser might, "based on prior experience" (from many years ago) use a GLA adjustment rate of $40/SF for a condo unit where current data shows should be adjusted at over $200/SF. That is why the evidence and logic must be cited, and not just the notation of prior experience.

The years are experience are not a "mere fact" that prior work was performed. The years of experience for an appraiser are like the years of experience for any other profession - it adds tremendous value BECAUSE the years out in the field seeing so many different homes and areas walking properly, comparing in person the levels of quality of construction and upgrades. talking to market partitions and builders at inspections, and driving the neighborhood to inform the appraiser's judgments and analysis.

I would assume that feedback from appraisers themselves wrt hybrid should be part of the data considered -there is no way for an appraiser to know, and therefore for you or any reviewer to know, if the appraiser's value would have been different had their personally inspected.

 

[Tim Hicks (Texas)]

What value was your subject? clearly a sale in the one million range is not comparable to a subject with a value in the 400-500 k range.

The home last sold for $489,000 and now it is in the $600s. A 1986 log home. I looked at the $1mil plus homes, all much larger, newer with much more modern amenities. Is it more acceptable the adjust $400-500,000 down than utilized sales that need less than $100,000. That is where the word "comparable" comes into question. There have been times when the much nicer home was more comparable, but not very often.

 

[Mark K]

About $50 cheaper here than a typical SFR. OTOH, I wonder what a house would cost here if there weren't 18 different roof pitches, mostly 8:12 or steeper, 3 bathrooms, 12' ceilings, and a $80k kitchen to toast bread and thaw frozen dinners in.

I wonder the same.

For 40+ years the typical home in this area, and thousands were built up to about 1995, were 1,600 sq.ft. 6/3/2, 2 car att, all brick exterior, 4/12 pitch roof, decent box cabinets with formica tops, fiberglass tub/shower units, vinyl/carpet flooring on 1/2 acre lots. I've appraised so many that I could probably walk thru the house blindfolded and not touch a wall. I bet those could be built for a (comparatively) reasonable cost.

 

[Tim Hicks (Texas)]

I wonder the same.

For 40+ years the typical home in this area, and thousands were built up to about 1995, were 1,600 sq.ft. 6/3/2, 2 car att, all brick exterior, 4/12 pitch roof, decent box cabinets with formica tops, fiberglass tub/shower units, vinyl/carpet flooring on 1/2 acre lots. I've appraised so many that I could probably walk thru the house blindfolded and not touch a wall. I bet those could be built for a (comparatively) reasonable cost.

Yes, you know the floorplan before entering the house and before entering each room you know where the closet will be.

 

[Mark K]

Yes, you know the floorplan before entering the house and before entering each room you know where the closet will be.

Yeah, it was great. Easy money appraising. The only exotic amenities were things like the occasional vaulted ceiling in the great room or a garden tub in the master bath.

 

[Tim Hicks (Texas)]

Can you imagine having to support all your adjustments for $120.00 and 24-hour turn time?

I wish Danny was back on this side of the Appraiser/Client ledger again. I don't think his opinion of the hybrid appraisal and the paltry fees offered would be as highly touted by him. Of course, in his present position he does not have to worry about fees, just quality...and the dreaded data that can be manipulated to help any situation.

 

[DWiley]

I wish Danny was back on this side of the Appraiser/Client ledger again. I don't think his opinion of the hybrid appraisal and the paltry fees offered would be as highly touted by him...

So-called "hybrids" are far from a new concept. The only thing new is their consideration (and now adoption) for the GSEs. I actually did desktops and hybrids (though they were not called "hybrids" then) when I was in the field. How I priced them then was no different than how I would price them today - analyze the time required, consider opportunity costs, and price accordingly. That is just business 101.

Service providers always wish they could charge more, and service users always hope to pay less. It is the market that sorts out where the balance point is.

 

[Terrel L. Shields]

How I priced them then was no different than how I would price them today - analyze the time required, consider opportunity costs, and price accordingly.

And you would get zero business if any of the offers I've heard of were offered. $25 (WTF?) all the way up to $150...less tech fees.

 

[Mejappz]

and price accordingly.

How can you price accordingly, when given mere minutes to push the 1-click button below?

 

[J Grant]

The home last sold for $489,000 and now it is in the $600s. A 1986 log home. I looked at the $1mil plus homes, all much larger, newer with much more modern amenities. Is it more acceptable the adjust $400-500,000 down than utilized sales that need less than $100,000. That is where the word "comparable" comes into question. There have been times when the much nicer home was more comparable, but not very often.

I also would not compare homes in such widely disparate price ranges.

Just for some who read posts to learn, you mentioned you chose comps to bracket by age and acreage. Idk why age was so important, but the location of the comps was far, I like to try to include closer location comps if at all possible - search back 2- 3 years old, or homes a different construction age - course, if the property is not at all similar in or if it is a very different price range don;t use - I assumed appraises would know that.