New USPAP Q&As published March 6, 2025

[timd354]

So show us how this works. If inventories are declining, does that always prove that prices are increasing?

Of course not, it depends why inventories are decreasing....this is just another datapoint that can be analyzed by appraisers to confirms (or counter) other data trends and this it the type of anlsyis that that appraisers do (or should do) everyday. If appraisers are just going to throw there hands up in the air and state that they don't know or that they are not caparable of figuring out market trends, then what value do they add over and above an automated valaution?

It has always astounded me how many times I read an appraisal report that is filled with several paragraphs or even several pages or disclaimers and limitations that makes it sound like an appraiser does not know anything and has no expertise in various areas related to real esate. I get that some appraiser are afreaid of being sued, but when some people in the secondary market read report after report filled with disclaimers in which appraisers essentially state that they don't know anything and have no expertise in a lot of things related to real proeprties, it should not surpise anyone that some people in the secondary market may not value the work of appraisers as much as they should.

 

[timd354]

Is that why you managed it so very well during 2007-2010?

I did not manage anything during 2007-2010 and the company I work for was not in existence before or during the bubble, which gave us the chance to learn from the mistakes made during the bubble without paying for any of those mistakes, so try again.

 

[djd09]

now the secondary market has standards...like no doc loans

 

[timd354]

double post

 

[timd354]

What you are saying shows that you as a secondary market insurer do not actually care about the appraisal development or appraisal adjustments. You just care about the valuation being reasonable.

 

[George Hatch]

I just view it as another opportunity to educate people on why I don't use pendings. Especially some out-of-state reviewer who thinks my appraisal development is deficient in some manner, my favorite. If the data appears on one of my grids, you can count on it. One less thing to worry about while focusing in on the finer things in life.

I often use pendings and actives in my reports, and I also track expired/withdrawns to see which listings didn't sell.

But I also do a sale/list and DOM for every closed sale I present in order to figure out what those pendings and actives mean to me. If all my closed sales are DOM @ under 30 days and some pending was active for 180 days then I'm probably not using that listing at all because it was obviously overpriced to start.

If all my closed sales have been selling at 98% or 100% of list then that helps me interpret a competing pending in that pricing trend, even if I'm not citing it as a primary support for my value conclusion.

 

[Mark K]

It is very easy to get contract prices from realtors, but you have to pick up the phone, and you have to know how to get it out of them.

In this state the said realtors would be in violation of their 'ethics'. They are advised, in the strongest of terms by their lawyers, to NOT disclose the sales prices of the pending properties.

Many offices HAD dry erase boards that listed all of the sales and pending prices for the month, along with the broker's name...a bragging rights thing. They were all told, in no uncertain terms, to remove the pending price column...breach of client confidentiality.

Its been like that for many years.