New USPAP Q&As published March 6, 2025

[Joe Flacco]

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.

I agree with the original point that adjustments should not be based on experience but saying that all differences must be quantitatively adjusted for is reaching. It's ridiculous.

95% of differences between properties are not even standard items on the URAR.

 

[Joe Flacco]

Let's just leave it as "based on experience" is not credible support and leave it at that.

 

[gregb]

timd354 you are the one who says "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:

But I am saying that I am not required to make quantitative adjustments.

Do you still say quantitative adjustments are required under cert #9 of the URAR? Next thing you will say something about one mile, bracket, 15% gross or net and 6 months.

 

[Mejappz]

I agree with the original point that adjustments should not be based on experience but saying that all differences must be quantitatively adjusted for is reaching. It's ridiculous.

95% of differences between properties are not even standard items on the URAR.

That’s what happens when you deal with an organization, TAF, tangled in one conflict of interest after another.

 

[CGinMN]

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.

An adjustment is a modification to the price of a comparable(s) to account for differences between it and the subject, which is all this is.

 

[timd354]

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.

timd354 you are the one who says "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:

But I am saying that I am not required to make quantitative adjustments.

Do you still say quantitative adjustments are required under cert #9 of the URAR? Next thing you will say something about one mile, bracket, 15% gross or net and 6 months.

If you are not making quantitative adjustments on an appraisal reported on the URAR, they

An adjustment is a modification to the price of a comparable(s) to account for differences between it and the subject, which is all this is.

 

[timd354]

An adjustment that is a modification to the price of a comparable to account for differences between it and the subject is by its very nature a quantitative adjustment as a modification of the price is done by expressing the change in the the price in a quantifiable manner, typically expressed as a numerical dollar amount (but also possibly expressed by numerical percentage). On the other hand, grouping or weighting comparable sales based on the differences between them and the subject is a form of qualitative analysis, but this does not involve an adjustment or modification to the price of the comparable sales.

 

[George Hatch]

If someone makes the argument in front of a judge that a licensee can just blow off USPAP and that judge is familiar with the reference in that states' law then their argument isn't going to go very far. Even judges have to adjudicate the law as written

Sorry for the page break

 

[George Hatch]

Even in Arkansas

 

[timd354]

timd354 you are the one who says "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:

But I am saying that I am not required to make quantitative adjustments.

Do you still say quantitative adjustments are required under cert #9 of the URAR? Next thing you will say something about one mile, bracket, 15% gross or net and 6 months

I agree with the original point that adjustments should not be based on experience but saying that all differences must be quantitatively adjusted for is reaching. It's ridiculous.

95% of differences between properties are not even standard items on the URAR.

I never argued that all differences must be quantitatively adjusted for. However, the major drivers of value need to be addressed quantitatively if there are meaningful differences between the subject and comps. By the way, every time you report an appraisal on the URAR with its pre-printed sales comparison grid you are reporting a quantitative adjustment for the different property attributes listed on each and every line of the sales comparison grid (assuming there is a difference between the subject property and comps in regards to that attribute) even if you are reporting that the adjustment is zero (or no adjustment) in the "+(-) $ Adjustment" column as zero is a quantifiable numeric data point.