New USPAP Q&As published March 6, 2025

[TerryRohrer]

In light of this spur of the moment pronouncement, what does "geographic competence" mean? Do we all start at square one in each assignment, regardless of time in market? There is probably an exception intended in order to allow the sainted AMC staff appraisers to operate country wide.

 

[timd354]

maybe so, but in local Superior and Circuit courts adjudicating real estate issues, where most appraisers would be found, the above does not apply.

Judges make the rules in their courts; they always have and always will.

I am not in Indiana, but I am quite certain that Indiana courts are bound by the Indiana Rules of Civil Procedure and the Indiana Rules of Evidence and if a judge strays too far from those rules, he will get slapped down by the appellate court if there is an appeal.

 

[Terrel L. Shields]

Rules of Civil Procedure and the Indiana Rules of Evidence

I don't know of any court that mandates they judge appraisers on the basis of USPAP. I've even asked judges and they agree.

 

[timd354]

Sales comparison approach is not either quantiative OR qualitative. It is not wholly one or the other. Some differences make sense to develop quantitative adjustments and some differences make sense to consider qualitatively, depending on the situation.

Nothing credible about these adjustments being spit out by the apps that are being pushed recently.

I don't deny that both qualitative and quantitative analysis can be done together, however, if your are completing a GSE appraisal reported on a standard Fannie/Freddie appraisal form, you are required to make quantitative adjustments as you are certifying that is what you did per Cert #9 of the URAR:

9. I have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject
property and the comparable sales.

 

[timd354]

I don't know of any court that mandates they judge appraisers on the basis of USPAP. I've even asked judges and they agree.

I never made the argument that any court would be required to do that. However, under the Daubert rule and the Federal Rules of Evidence (and many state rules of evidence) courts should not allow expert opinions that are based on nothing more than the expert's experience or which do not reflect generally accepted methodologies in their field of expertise. Small claims courts in most states are an exception since typically many of the strict rules of evidence do not apply in small claims actions.

 

[gregb]

9. I have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject
property and the comparable sales.

I have made qualitative adjustments to the comparable sales that reflect the market reaction to the differences between each of the comparable sales and the subject, with no quantitative adjustments warranted, because USPAP does not require redundancy.

 

[timd354]

I have made qualitative adjustments to the comparable sales that reflect the market reaction to the differences between each of the comparable sales and the subject, with no quantitative adjustments warranted, because USPAP does not require redundancy.

What does a qualitative adjustment to a comparable sale on a GSE appraisal look like? (serious question)

 

[Elliott]

I imagine, not based on my experience, the intended users (GSEs) of reports like the ASC putting appraiser in a smaller and smaller corner, so it is easier to force lenders to buy back sour mortgages.

 

[CGinMN]

What does a qualitative adjustment to a comparable sale on a GSE appraisal look like (serious question)?

The subject has all new windows within the past year, whereas comps windows are fully functional but original and range from 15-25 years old. While no quantitative adjustment is made in the sales comparison grid, the appraiser considers this qualitatively when reconciling a final opinion of value.

 

[timd354]

The subject has all new windows within the past year, whereas comps windows are fully functional but original and range from 15-25 years old. While no quantitative adjustment is made in the sales comparison grid, the appraiser considers this qualitatively when reconciling a final opinion of value.

That is an example of qualitative analysis, but not a qualitative adjustment. I don't argue that qualitative analysis is not an appropriate and recognized method of appraisal analysis., but it is incorrect to say that this type of analysis constitutes an adjustment to the comparable sales as is being argued by our friend gregb.