USPAP violations

[JSmith43]

As a very wise appraiser wrote, "How do you defend yourself when your interpretation, and even that of many of your peers is different from the actual interpretation of the board?"

Keep a diary of appraisal board reversals in court comes to mind. We shouldn't all have to reinvent the wheel. Each state should be a good candidate for appraisers organizing & distributing this type of data. Maybe it could be done on the appraiser's forum within the states individual forums, without much dilution of purpose.

I wonder if the Head Surfer would have a business objection? To me, it seems like a valuable source of information. Collect it & sell access to it, Wayne

Of course, give it to contributors with a minimum post count of, for example, +/-1,000. Who would post 1,000 times just to avoid an access fee?

 

[Terrel L. Shields]

Regulation seeking a concrete goal using subjective words results in punitive actions.

What if I define the market area as an entire school district, and use comps from there, but a reviewer uses only a portion of the school district and draws all comps based on distance as the primary factor (distance, time, similarity).... Who is right?

 

[George Hatch]

If the comps come down to proximate and similar then what difference does it make if a reviewer doesn't agree with an appraisers' wider boundaries in a neighborhood? How does that affect the valuation?

Even property ratings. So what if the appraiser categorizes a C3/Q3 and the reviewer disagrees? As long as the appraiser is consistent in their ratings they end up with the same comparison. It's only if the appraiser is obviously inconsistent between subject and comps that their benchmark becomes the problem.

IMO the bigger problem is the reviewers not recognizing the difference between the role of reviewing vs the role of appraising. That has nothing to do with licensing.

 

[George Hatch]

One thing I try to do as much as I can is to provide the context for my opinions. If a reviewer is going to *opine* that the original neighborhood description is in error then what's the context for that? "Wrong" compared to what? "Inadequate" compared to what? "Average" compared to what?

Using these terms as if they're abstracts and not relational gets to being misleading when used to express an opinion.

 

[CANative]

In a way, the discussion of the specifics is sort of off topic in the context of my original post or question.

Since it is up to the state agency to make the determination that a violation of USPAP has occurred, should appraisers use the phrase "USPAP violation?"

Or would it be better to qualify the statement is "possibly" or "potentially" or some other qualifier?

 

[George Hatch]

The applicability of USPAP is not limited to those activities that fall under the jurisdiction of the government.

If some nimrod passes you at 95mph on the freeway most people would have no qualms about expressing an opinion of that act as violating the posted speed limit.

 

[23Degrees]

If you use the term "USPAP violation" and it's later determined to not be a USPAP violation, has one committed a USPAP violation?

It might not be improper to use the term but it would probably be prudent to point out errors or lapses without using it in the context of a review and let the people holding the whip make the final call. Personally I'd go with a qualifier as you suggested if I was going to mention USPAP at all.

 

[Peter LeQuire]

If the comps come down to proximate and similar then what difference does it make if a reviewer doesn't agree with an appraisers' wider boundaries in a neighborhood? How does that affect the valuation?

Even property ratings. So what if the appraiser categorizes a C3/Q3 and the reviewer disagrees? As long as the appraiser is consistent in their ratings they end up with the same comparison. It's only if the appraiser is obviously inconsistent between subject and comps that their benchmark becomes the problem.

IMO the bigger problem is the reviewers not recognizing the difference between the role of reviewing vs the role of appraising. That has nothing to do with licensing.

It matters a great deal. Regardless of the outcome of a regulatory proceeding, appraisers are in the position of having to defend themselves against "offenses" that are - to one extent or another - subjective to the person making the charges. The fact that a charge is made -whether it's a valid charge of a substantial violation or a disagreement about the "adequacy" of someone's analysis - appraisers have to notify their E&O carrier; pay the attorney the minimum amount required by their coverage; accept whatever penalty and/or additional education is imposed by way of sanction or appeal to the court system. Appraisers are naïve in the extreme if they don't get their own attorney (their E&O carrier's lawyer is not there to protect the appraiser, their there to protect the insurer). And, after all that, if there is a sanction - however small - that can cause loss of clients and future business.

 

[VegasWayne]

Back in the 60's and 70's I lived in California near one of the main roads going to Las Vegas. On Friday afternoons the CHP would randomly pull over cars and write tickets for tailgating or impeding traffic until they had filled their quota. The way state boards interpret USPAP is similar. If they want to find you guilty they will find a way using USPAP.

 

[Tim Hicks (Texas)]

Bobby Bucks has been a member of the USPAP police force for many years. Give his office a call or just drop in on him some time.