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Opinion, Opinion, Who's Got An Opinion

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Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
(edited to insure clarity between my words and those of my correspondent....)

This was sent to me privately, but is too funny/sad/scary a commentary
of the quality of the new USPAP classes to keep to myself...

Note: I have not as yet attended the new national USPAP course myself...
thought I'd give them a chance to work the kinks out first...
... might take a while...
I have no reason to believe the following is untrue.

~quoted material follows~
~~~~~~~~~~~~~~~~~~~~
I recently had my USPAP (15-hour). Yuk.
I almost remained completely silent.
Here is one of my two exchanges.

Instructor: Why is intended use important?
Student: [after waiting and seeing that no one else was going to say anything].
It helps determine the scope of work.
Instructor: NO! It establishes the context of the appraisal.

Later, when doing the review for the exam.

Instructor: Why is intended use important.
The Guy Sitting Next to Student: It establishes the context of the appraisal.
Instructor: NO! [Looking down at the instructor guide], it helps set the scope of work.
The Guy Sitting Next to Student: [exchanges meaningful glances with Student].

It's just not going to get any better in my lifetime. <_<

{snip}
SO:

Should we be turning in "Certified USPAP" instructors who
1) pass off their personal opinions as rules or 2) simply have it wrong?

Are they violating
1) bias and 2) competency rules?
~~~~~~~~~~~~~~
Having had a major and very personal gripe as to these issues before, I am not sure the 'National USPAP: henceforth we shall all be on one page' has entirely fulfilled it's mission: conveyance of succinct and comprehensible rule interpretation for all us workin stiffs!. :unsure:

Comments?
 
Perhaps the appraiser should try reading what USPAP says about why intended use is important.

Standard Rule 1-2 b -
Identification of the intended use is necessary for the appraiser and the client to decide:
the appropriate scope of work to be completed, and
the level of information to be provided in communicating the appraisal.
 
Originally posted by Lee Ann@Oct 1 2003, 08:18 PM

SO:

Should we be turning in "Certified USPAP" instructors who
1) pass off their personal opinions as rules or 2) simply have it wrong?

Are they violating
1) bias and 2) competency rules?

~~~~~~~~~~~~~~
Having had a major gripe as to these issues before, I am not sure the 'National USPAP: henceforth we shall all be on one page' has entirely fulfilled it's mission: conveyance of succinct and comprehensible rule interpretation for all us workin stiffs!. :unsure:

Comments?

That is a very good question indeed. USPAP 2004 contains a seemingly benign revision but one that has huge import to the process of instructing appraisal classes. It is the much needed whack on the side of the head some instructors need to force them to represent the material fairly and accurately.

Up to the present, USPAP has defined bias as a preference or inclination used in the development or communication of an appraisal, appraisal review or appraisal consulting assignment that precludes an appraiser’s impartiality. The current version abandons this limited view of covering only these three types of assignments and proposes a new definition. It says, “ An appraiser must perform assignments with impartiality, objectivity, and independence, and without accommodation of personal interests.”

Thus in this change, all assignments are included, including teaching and instructing assignments. Non-Impartial instructors violate USPAP. Since you can't turn in instructors for bad jokes, now you have a tool to hold over the biased and super-opinionated.

We all have a personal bill of rights, among these rights is that we deserve to get what we pay for. USPAP now levels the playing field between the instructor and the student. Since bias can be disguised, appraisers must be more vigilant consumers by reading and understanding USPAP on an on-going basis and not waiting to crack the book once every two years. Keeping up with the Q & A each month is good practice that should not just be left to the USPAP geeks. Appraisers are great complainers. From now on, I would not hurridly fill out the instructor evaluation. Make it count and if the instructor shows bias or for that matter incompetence, say it on the evaluation and by all means get what you pay for.....

So, the real question is how did those that took that class fill out their evaluations at the end of the class :question:
 
:D
Brownie points to Doug for catching "the point of the post"!

I surely wish that such instructor review had been a meaningful option a few (errr many) years ago when I was a fair newbie, and taking a local USPAP class from a {gasp} competing professional organization...

I got pretty hot under the collar (kin ya imagine that?) when some statements were made which were entirely contrary to MY understanding of what USPAP meant... and back then it only ran to 148 pages INCLUDING the index :P

Aside from our personal responsibility to stay informed and insure that ethics are followed in the classroom as well as on the street... it might behoove some instructors to bone up on their material beyond rote reading and 'I passed the exam'. :idea:

Then perhaps the national classes will have some positive effect and real meaning!
 
Lee Ann
“Context” is a conceptually correct answer, but it departs from the standard jargon. Standards-by-jargon leads to debates over
-“time” v. “market condition” adjustments,
-“sales comparison” v. “market data” approach
-“function” v. “intended use” (v. “context”) of the appraisal
-“opinion” v. “estimate”
-“update v. “recert”
-whether the cert page has to be verbatim SR 2-4 or whether you can add certified conditions required by professional organizations and federal agencies

Here, the instructor is disserving the students who must cram-and-regurgitate to succeed at time-compressed, education-by-bulimia. The students will not find “context” as a correct choice to answer the question, nor is there enough time for concepts to sink in.

Posted by Pam
Perhaps the appraiser should try reading what USPAP says
Yes, that is usually my answer - and it tends to undermine the justification for USPAP CE in the first place. But there are three appraisers in Lee Ann’s story. Which one is “the appraiser?”

Posted by Doug
USPAP now levels the playing field between the instructor and the student.
The instructor also has the practical problem of maintaining law and order while covering the material in a “hostile” environment. But that said, I think much is “controversial” within the profession and the instructor needs to present the controversy, not just take sides in it.
 
I have no opinions when it comes to USPAP. It is like a law document. Lawyers can find a way to twist any law into their interpretation. Heck, the courts can't even figure things out. Everybody in the world wants a national "do-not-call" list, but a court can decide it is unconstitutional.
 
Ooops.... I should have typed instructor!

As in "perhaps the instructor should read USPAP". If he did, he would know that both answers were correct, instead of making himself look like a fool when he said both students were wrong.

Pam
 
+
Up to the present, USPAP has defined bias as a preference or inclination used in the development or communication of an appraisal, appraisal review or appraisal consulting assignment that precludes an appraiser’s impartiality. The current version abandons this limited view of covering only these three types of assignments and proposes a new definition. It says, “ An appraiser must perform assignments with impartiality, objectivity, and independence, and without accommodation of personal interests.”

Thus in this change, all assignments are included, including teaching and instructing assignments. Non-Impartial instructors violate USPAP. Since you can't turn in instructors for bad jokes, now you have a tool to hold over the biased and super-opinionated.

Since we're quoting the USPAP about assignments, howsabout we quote the USPAP definition for "Assignment":



Assignment - A valuation service provided as a consequence of an agreement between and appraiser and a client.

Assignment Results - An appraiser's opinions and conclusions developed specific to an assignment.

Comment: Assignment results include an appraiser's:
- Opinions or conclusions developed in an appraisal assignment, such as value;
- Opinions of adequacy, relevancy, or reasonableness developed in an appraisal review assignment; or
- Opinions, conclusions, or recommendations developed in an appraisal consulting assignment.

And since the term "valuation service" is used as part of the definition for "Assignment", we might as well bring that definition is as well:

Valuation Services: services pertaining to aspects of property value.



Now, I don't disagree that an appraiser who is so arrogant that they can stand up in front of a room full of their peers (also a very arrogant group, as a whole) and basically tell them what to do or otherwise instruct them in the finer points of appraisal practice had better really know what they're talking about. I also sympathize with appraisers who, while fulfilling their respective prison sentences at a mandated USPAP course are forced to bear the additional burden of an instructor who is blindered and/or blinded by their personal biases. But let's get real here - trying to bend the definition of "Assignment" and "Valuation Services" to apply to course instruction? I'm not feeling that one.

As an appraiser, I always try to anticipate opposing viewpoints and deal with them while I'm writing my reports. As an instructor, I try to do the same thing with a classroom full of appraisers by presenting both sides of an argument and the reasoning behind them. Obviously, I'm going to give more attention to the side of the argument that I think is most appropriate given the goals of the course, but I try not to pretend that there is only one way for each person to act in all situations. I also try not to pretend that any appraiser is going to significantly change their methods and practices just because they heard some other appraiser espouse it. Credibility as a course instructor for appraisers can only be earned and is never bestowed. Once lost or even seriously damaged, it's tough to regain. You cannot develop a rappor with a roomful of appraisers by being dogmatic or blindered, nor by bluffing your way through areas that you're not familiar with. It's a tough group.

Are we really that worried about opinionated people in the appraisal business, or for that matter, in the education of appraisers business? 'Cause if we are, we're in big trouble. All good appraisers are very opinionated people by nature; we have to be because it's part of the job description. Develop and communicate opinions and conclusions.

Now, the biggest question Lee Ann's post brings up is the effect an instructor has on other appraisers when he/she departs from the party line. I agree, the qualifications process was supposed to eliminate, or at the very least, reduce the frequency of these detours by teaching and rigorously testing for the one true path. Best laid plans of mice and men, right? If anything, it sounds to me like the presentation of this apparent contradiction is at least a big a problem as the contradiction itself. Just as it requires a very specific set of skills to be a good appraiser, course instruction also requires a very specific set of skills; skills different from those required for appraising. Not everyone is cut out to appraise, and not every appraiser is cut out to instruct their peers. Becoming competent first requires acknowledgement of any known deficiencies. Same thing here.

I would say that if a course participant has a legitimate question about an instructor's presentation, they should be able to resolve it at all levels of the process - with the instructor on a one-one basis; with the school or sponsoring entity of the course; with the state board who has approved the course and authorized its instruction; and in the case of the USPAP courses, with the Appraisal Qualifications Board who has certified the instructor. I wold even go so far as to say that as professionals we have an obligation to our profession to prevent further contamination by bad presentations to future classes. Face it, none of us want to have to deal with some review appraiser who has been brainwashed into following one of these detours.

When it comes to CE or advanced appraisal education, it's like anything else we do: Trust, but verify. There's no need to accept anyone's word on blind faith, and a good instructor in any discipline would never expect you to.
 
George:

This is what the ASB says in the 2nd Exposure Draft:


"The current definition only covers an appraisers activities while engaged in appraisal, appraisal
review, or appraisal consulting assignments. These activities only describe some of the services
that fall under the definition of assignments in USPAP ;assignment and appraisal practice
both encompass the full range of an appraisers activities under USPAP). In fact, an appraiser must abide by these ethical requirements anytime they are engaged in any form of appraisal practice (i.e. assignment). For example, USPAP has no specific Standards Rules for appraisal practice services such as teaching appraisal courses or writing educational texts; however, USPAP does require an appraiser providing such services to do so in an impartial, objective, and independent manner."

The ASB takes a wide view of activities by appraisers but in this paragraph zeros in on the role of an appraiser as an instructor. An instructor who is not impartial violates USPAP. They could not be more clear in this paragraph that teaching is folded into the definition of "appraisal practice(ie, assignment.' by relating it to "appraisal practice services."
 
:P I think it is that 'independant manner' thing that has been giving the industry (inclusive of myself) fits!

I definitely agree with George's intimation that herding cats in a rainstorm is easier than achieving consensus on the many possible interpretations of USPAP possible in the typical crowd of independant thinkers... you'd have to be fast on your feet and a magician to boot.

Smoke an mirrors wouldn't satify the crowd...who just happen to earn their livings only by virtue of pleasing a cleint base whose 'actual' goals of closing loans is in direct opposition to that expressed: "cover my assets through honest and ethical analysis and reporting" all of which gets filtered through a methodolgy nearly perfectly designed to encourage the behavior it seeks to avoid: number-hitting!

I personally beleive that the AO's and this national class are going to do exactly what is intended: nudge ethical understanding and most behavior in the right direction: throught more carefully aligning the spoken and writ interpretations and exposing the more homgenous mess to a wider audience.

NOt everyone is interested in the understanding the structure of the profesion they are in: there are a LOT of mechanics who only want turnkey comprehension. Then there are the engineers who want to know tolerences and fail points, with a stated goal of making the machine run smooth. Put enough of both in the same room and you might as well be throwing sand in the gears.

Hmm USPAP 7 hour as oil... good for what ails you? if it doesn't make you sick :P
 
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