New USPAP Q&As published March 6, 2025

[George Hatch]

I completely agree. The focus should be on incentivizing quality work rather than adhering strictly to rigid frameworks or metrics that may not prioritize the actual value of the work being done. By encouraging better practices and rewarding quality outcomes, the GSEs and lenders can drive meaningful improvements in the residential space. However, as we've seen in this discussion, when the powers that be dismiss or downplay these ideas, they often resort to vague remarks about "user needs" or "market demand," completely sidestepping the core issue. If the focus isn’t on hiring qualified appraisers, compensating them fairly, and allowing them the time to do a thorough, quality job, then all the other metrics and measures are essentially meaningless. No system can thrive without a strong foundation of skilled professionals who are incentivized to do their best work. Without those basic, essential elements in place, everything else becomes a bandaid on a much larger problem. And one of the key problems is USPAP itself.

USPAP is a minimum standard, not a prison menu. It is not the role of USPAP to dictate to the users exactly what they consider to be meaningful. They have their own regulations which lay out their requirements but appraisers don't write or enforce those regulations.

You are no client's partner or peer. There's no arbitrary parity involved in the business side of the transaction. They buy at whatever price they can buy at and you sell at whatever price you can get. Same as you do when you're buying oranges or legal work. And if you aren't selling to them what they consider meaningful to their usage they will just take their business elsewhere. Regardless of what you think. Regardless of what the ASB thinks.

This here is America: that which is not legally prohibited is otherwise legally permissible.

 

[Francois K. Gregoire]

By the way, here is the room where TAF members stayed during last week's 'CARE' conference in Clearwater. I'm sure a lot of important work was accomplished. LOL

View attachment 97626

This is the view from the parking lot of the hotel. Sorry, I did not have a room

 

[Mejappz]

This is the view from the parking lot of the hotel. Sorry, I did not have a roomView attachment 97630

Well, you live close by so I didn't expect you to have one.

 

[timd354]

View attachment 97618

Nearly all appraisal education regarding the sales comparison approach references qualitative adjustments. Even the licensing exams have a section on qualitative adjustments.

You are simply wrong in your interpretation of adjustment. I don't know why you are even trying to argue this.

Nice try Flacco.....why did you post a dated version of the National Uniform Licensing and Certification Examinations Content Outline from 2015 and not the current version that was updated in 2022? I'll tell you why.... it is because that the current version corrected the obvious error from the 2015 version of the exam and supports my position.

 

[Mejappz]

Nice try Flacco.....why did you post a dated version of the National Uniform Licensing and Certification Examinations Content Outline from 2015 and not the current version that was updated in 2022? I'll tell you why, it is because that the current version corrected the obvious error from the 2015 version of the exam and supports my position.

View attachment 97629

The AQB has had forty years to correct its errors but has failed. This is one of the reasons for our current situation. It's time to move on.

 

[CGinMN]

This is the kind of question they ask you when you interview for collateral at the GSEs or you apply to be on the ASB to ensure you adhere to the same orthodoxy and will toe the line. It is the equivalent of the secret handshake.

“What do you think of qualitative adjustments?”

“There’s no such thing!”

“Welcome to the club!”

 

[Terrel L. Shields]

as those terms apply to FNMA and forms.

fixed it for you. As I've said, USPAP gets superficial acknowledgement by the PTB, and FNMA rules the residential world. "Paired Sales", unless you rely solely upon one single pair likewise "bracket" a range of values reflecting our imprecision in measurement and the variability between sales. None of our adjustments are set in stone. The average appraiser "observes" an effective age that relate to another sale of known age. Few calculate it using something like Epley's method. And even if you do, two appraisers might judge the total life of a dwelling at a different level, might estimate land value (site) differently, yet could potentially still have a close final value.

When you adjust for "view" or "location" you and you alone make the judgment about the impact. You might see the mountains from one house while another nearby house may have a view blocked or, worse, partially blocked. Are the two even comparable enough to "pair" without making multiple adjustments? So, without multiple pairs, you have a very poorly supported but quantified, result. And if you have 10 pairs, you will have 10 different results. So, which in the rate is closest to your subject? Or is that the only pair you have? If so, how valid is it? Well, I suppose we can argue that a dartboard is very quantifiable.

Without multiple data points few things can be quantified beyond simply saying they support an adjustment. Even with multiple data points, you are going to have a range with a margin of error. In reality, all adjustments are disputable and are only valid with the assumption that there is a margin of error in each and it is your judgment otherwise.

They can play silly word games all they want, but using numbers does not create "quantitative" results. It's just a tool to SUPPORT your opinion, not to PROVE a value.

 

[Joe Flacco]

Nice try Flacco.....why did you post a dated version of the National Uniform Licensing and Certification Examinations Content Outline from 2015 and not the current version that was updated in 2022? I'll tell you why, it is because that the current version corrected the obvious error from the 2015 version of the exam and supports my position.

View attachment 97629

The one I posted is what came up searching appraisal institute references to qualitative adjustments. So qualitative comparisons and qualitative adjustments are the same thing.

Now look up appraisal education course content. It doesn't matter if it is residential or commercial. Under sales comparison approach and adjustments, it is always quantitative and qualitative.

You are really making yourself look foolish by insisting that qualitative adjustments are not a thing in appraisal. There are situations when quantitative adjustments work best and there are situations when qualitative adjustments work best. They are both necessary and recognized methods of adjustment.

 

[Francois K. Gregoire]

Well, you live close by so I didn't expect you to have one.

Happy to hear you know so much about me. How long was my drive?

I did get to pay $25.00 plus tax for the benefit of parking my car there. My car did not have a view, however.

In the interest of full disclosure, the room where CARE met did not have any windows.

 

[George Hatch]

What they really want to know is the ratio of work/partying at these meetings. How many hours of work vs how many hours of drinking at the open bar.