USPAP and non-appraisers providing values

[JTip]

Reading through USPAP I found one thing that would allow a non-appraiser (licensed or certified) to provide a value on real estate or estimates (damage).

As long as the word(s) 'appraisal/appraiser' is not used in the assignment it would be ok. USPAP should be used but does not have to be used by a non-appraiser. As long as the client does not think the assignment is an 'appraisal' then anybody can give an opinion of value.

Like insurance adjusters, they provide 'damage estimates'. USPAP is not followed, they are prepared by non-apprasiers. Different story if an appraiser prepared the damage estimate.

An apprasial is an opinion of value provided for a fee (or no fee) by an appraiser.
A damage estimate/valuation/BPO can be provided by anybody as long as the word appraisal is not used or assumed by the client.

In summary: Using the words apprasial or appraiser in any part of the assignment will make it subject to USPAP and would be required to be completed by an appraiser.

Am I thinking correctly?

 

[Restrain]

If you are not an appraiser that is regulated by a state, you don't have to comply with USPAP. As an example, Texas allows CMAs for a fee, and so long as they are disclaimed, they don't have to comply with USPAP. So real estate agents can provide estimates of value for various purposes, and as long as they don't say they are an appraisal, no USPAP. Insurance adjusters are not regulated and don't have to comply. Most states don't regulate PP appraisers, no USPAP. Mass evaluations, even though cited in USPAP don't have to comply with USPAP. Again, no state requirements to comply with USPAP.

TAF should retire everything except sects 1-3. The rest is wasted effort and paper since they have no jurisdictional effect.

 

[Lee Lansford]

...


Am I thinking correctly?

Mandatory adherence to USPAP, and who must adhere to it, is a matter of law in the various jurisdictions.

Anyone may opt to adhere to USPAP but not everyone is obligated to adhere.

 

[RSW]

Not in the State of TN. The word "value" or valuation makes it an appraisal. Real estate agents in TN are not allowed to accept a fee for a BPO and can only do them if it is use in order to try and get a listing.

 

[Terrel L. Shields]

In summary: Using the words apprasial or appraiser in any part of the assignment will make it subject to USPAP and would be required to be completed by an appraiser.

Am I thinking correctly?

No...maybe...perhaps. If you are unlicensed and do not claim to be "certified" then the state cannot regulate someone without a license. The word itself is meaningless. Our state does allow experts in any field to register and they can value anything that the court approves them to value (for instance, a horticulturalist could testify that a big tree in the front yard was "worth" $2000 without adhering to USPAP).

The word "appraisal" is used in many fields. Human services "appraises" applicants. Audits "appraise" system issues. The Army "appraises" battle tactics.

Valuer would be a better word specific to what we do.

 

[Scott R Marshall]

This is a state by state issue. Someone providing an appraisal, valuation or whatever you want to call it who is not an appraiser is not held to the standards of USPAP but is held to whatever the local laws are.

 

[George Hatch]

Don't confuse USPAP or any other professional standard with a law or rule or regulation that requires its use under certain circumstances. What is permissible to the state varies by state.

Besides that, USPAP operates off the expectations for and the actions of the individuals, not the nomenclature used to describe them.