USPAP class for the thirteenth time

[djd09]

That seems to be more about you than it is about the content. A lot of appraisers manage to learn and properly apply USPAP. Those that don't or can't, shouldn't be appraisers.

you can try to swipe at me...but i passed all their test and probably know USPAP better then you and the propagandist USPAP teachers

 

[Tom D]

That seems to be more about you than it is about the content. A lot of appraisers manage to learn and properly apply USPAP. Those that don't or can't, shouldn't be appraisers.

USPAP is also somewhat vague. If any anal agency wants to burn you, they will find USPAP mistakes on your report, or at least that perception to fine you.
I actually think the HUD handbook, which most have not actually read, it a better USPAP book than USPAP. HUD spells out exactly what they expect.

 

[Dublin ohio]

I actually think the HUD handbook, which most have not actually read, it a better USPAP book than USPAP. HUD spells out exactly what they expect.

You might want to rethink that. The 4000.1 is about as clear as mud on some issues. Look at some of the FHA/HUD threads

 

[Fernando]

Want to Avoid 12 Common USPAP Violations? Read this!​

09-10-2014 by: Christine Anderson

The Uniform Standards of Professional Appraisal Practice (USPAP) are the quality control standards applicable for real property and business valuation appraisals. What you may not know are the most common USPAP violations. This list below includes the most frequently encountered violations by TALCB's staff appraiser-investigations when investigating complaints filed with the Board. With this insight, you will be able to communicate more effectively in your appraisal report and successfully avoid missteps when completing an appraisal assignment.

Interested in a full version of the TALCB investigative report? We have provided it here for your information.

How-to avoid the most common USAP violations:​

1. Select comparable sales using recognized methods and techniques​

What to avoid:

• Leaving the neighborhood when sales data is readily available in the immediate area
• Searching by price
• Avoid utilizing sales of superior quality, superior site characteristics, and superior amenities when more similar sales to the subject were readily available
• Missing or lacking documentation; a lack of documentation in your workfile for the comparable sales and search criteria selected is a red flag to auditor

2. Provide market analysis that is sufficient and in-depth; make sure it is credible for the intended purpose​

What to avoid:

• Improper delineation of neighborhood boundaries;
• Failing to identify the relevant characteristics criteria of the neighborhood
• Missing market trends, including the analysis of bank-owned properties and/or the analysis of current listings in the neighborhood

3. Report and analyze all current agreements of sale, options and listings and the sales history dating back three years​

What to avoid:

• Overlooking or failing to analyze prior listings when the listings would have a significant effect on the credibility of the assignment results
• Do not fail to reconcile this data with other data in the report

4. Support and identify adjustments in market value appraisals based on recognized methods and techniques​

What to avoid:

• Developing paired sales analysis without documenting in the appraisal report or
• Don’t utilize “rules of thumb” adjustments without documenting market-based support
• Avoid misrepresenting in the report that a method and technique was utilized when in fact it wasn’t

5. Accurately develop and communicate cost approach, estimate of site value, and the estimate of accrued depreciation​

What to avoid:

• Stating that certain methods or techniques were used when they weren’t
• Relying on County Appraisal District estimates of site value without a proper basis
• Don’t provide unsupported estimates of effective age and economic life

6. Comply fully with the representations made in the certifications signed and included in the appraisal report​

What to avoid:

• Don’t state in the certification that you inspected the subject property when in fact you had not
• Failing to identify persons that contributed significant assistance to the appraisal report

7. Edit canned statements or boilerplate to avoid conflicting, inappropriate or incorrect statements to produce a misleading appraisal report​

What to avoid:

• Making statements not applicable to the appraisal

8. Identify, analyze, and report the relevant characteristics of the site and improvements of the subject property in sufficient detail​

What to avoid:

• Failing to report and describe the specific and accurate zoning for the subject property
• Misrepresenting the subject's gross living area (GLA); for example, by making a significant misstatement of the total GLA, or including the area of auxiliary units, enclosed patios, and/or converted garages when inappropriate to do so
• Failing to report and analyze easements on the property
• Not reporting or and analyzing the existence of detrimental site conditions on adjacent properties

9.Provide an adequate analysis, rational and support of the appraiser’s opinion of highest and best use​

10. Effectively communicate the assignment results in sufficient detail to enable the intended users to understand the appraisal report properly​

What to avoid:

• Inadequately describing remodeling or repairs to the subject property
• Failing to report and describe additional features of the property such as a swimming pool or barns
• Not reconciling the quality and quantity of data available and analyzed
• Failing to reconcile the relevance of the approaches, methods and techniques used to develop an opinion of value

11. Maintain a proper workfile containing all data, information and documentation necessary to support the appraiser’s opinion of value​

What to avoid:

• Missing pieces of the workfile or failure retrieve the workfile from another party
• Failure to make a workfile available when required by a state regulatory agency

12. Develop, apply, and disclose a credible scope of work (this includes extraordinary assumptions and hypothetical conditions)​

What to avoid:

• Not disclosing the scope of work actually performed
• Not stating the extraordinary assumptions and hypothetical conditions relied on in the assignment

https://www.talcb.texas.gov/public/news-articles/want-avoid-12-common-USPAP-violations-read

all for 300 bucks...and they shorted number 3...within the normal course of business

And they don't teach that in USPAP classes.

 

[Fernando]

USPAP is also somewhat vague. If any anal agency wants to burn you, they will find USPAP mistakes on your report, or at least that perception to fine you.
I actually think the HUD handbook, which most have not actually read, it a better USPAP book than USPAP. HUD spells out exactly what they expect.

Not saying it's me but you can do appraisals without reading them.

 

[George Hatch]

here is one suggestion for criminals on 15th st...let the appraisers be advocates...and let the good times roll

That's your suggestion? That the appraisers do a 180* on their assertions of impartiality and objectivity?

 

[George Hatch]

could you imagine driving down the freeway and the sign says minimum speed limit 60 m.p.h...there is no end

Biggest Red Herring ever. The text doesn't support your talking point. And no standard of any type establishes an upper limit to how much diligence and competency the individual can provide.

 

[Dublin ohio]

could you imagine driving down the freeway and the sign says minimum speed limit 60 m.p.h...there is no end

Don't have to imagine it. Have seen some that say 45 mph min.

 

[George Hatch]

if i state on my appraisal that i am advocating for whoever...what is wrong with that...bye bye shilly shill shill

The only marketable attribute that we add to the transaction IS our assertions of impartiality and objectivity. Everyone and their dog already has an opinion of the value and they're all advocates for their position in the deal. Sometimes they're even right about the value, so there's nothing special about simply being right about the value.

There is no demand for "just another advocate", except when doing so deceptively and without the knowledge of the client's trading partners. In other words, except to enable the client to do crimes and to cheat their trading partners. We assert that we do diligence and transparency, not teamplay. If we aren't doing what we say we do then that becomes a lie.

Our appraisals are unmarketable if can act with client bias becomes part of our standards. Starting with the govt cutting us loose altogether, followed closely by most of the lenders eliminating appraisals from their underwriting protocols.

Worst idea ever.

 

[djd09]

fannie forms, fannie guidelines, fannie jargon, fannie certs, fannie CU review, and he still thinks we are impartial...dont drink the kool aid