What is this? "HB 2533 - appraiser is not required to comply with USPAP effective June 15, 2021".

[George Hatch]

"Limited Appraisal" went the way of the DEPARTURE RULE, nigh on 20 years ago.

As for superior product vs inferior product, if the pro-eval argument is that it allows appraisers to get away with doing "inferior" appraisals outside of the jurisdiction of their regulators then that's not a professional position I want to take.

IMO, people get way to wrapped up in what they normally sell to their clients without realizing how much of what they're doing is actually user driven as opposed to being hardwired in USPAP. If we can acknowledge that users can and do demand more than the minimums - which they do - then it shouldn't be so excruciating to also acknowledge that they can ask for less.

These users are spelling out their expectations. An appraiser who is hitting those minimums as well as whatever other *minimums* that are required in USPASP is not taking any more risks than in any other appraisal assignment.

 

[Mejappz]

YES BUT when the apprarsier does an-Evaluation he/she has to remove his apparsiers hat and put on his Evaluators hat because he/she want to make it clear that it's not an-appraisal -You do not attach or use your appraisal license number because its not an-appraisal .

Sure, that is included in the report. The report has labels on them stating ” This is not an Appraisal” The person who signs does not represent themselves as an appraiser.

 

[Mejappz]

About two years ago, I posted on this forum appraisers in Tennesse who primarily complete these Evals. Once in a while, they complete an appraisal on their terms. One of them is a Certified USPAP instructor; the other is an MAI.

 

[Mejappz]

However, this workproduct does meet all the minimum requirements of SR1/SR2 of USPAP.

But that's not what the client wants or state law requires.

 

[glenn walker]

"Limited Appraisal" went the way of the DEPARTURE RULE, nigh on 20 years ago.

As for superior product vs inferior product, if the pro-eval argument is that it allows appraisers to get away with doing "inferior" appraisals outside of the jurisdiction of their regulators then that's not a professional position I want to take.

IMO, people get way to wrapped up in what they normally sell to their clients without realizing how much of what they're doing is actually user driven as opposed to being hardwired in USPAP. If we can acknowledge that users can and do demand more than the minimums - which they do - then it shouldn't be so excruciating to also acknowledge that they can ask for less.

These users are spelling out their expectations. An appraiser who is hitting those minimums as well as whatever other *minimums* that are required in USPASP is not taking any more risks than in any other appraisal assignment.

You still don't get it an Evaluation is not an -Appraisal and in your case you should not prepare Evaluations because it does allow the preparer to develop and deliver a product that in theory is inferior to a real full blown USPAP compliant appraisal. Thats OK but understand the States are allowing this to take the USPAP appraisal liability off the back of appraisers who do prepare Evaluations. If they are prepared to be USPAP compliant or worse the appraiser removes the States USPAP shield of liability he is screwed if ever challenged in what capacity he was acting in. Lets see I invoke USPAP and even declare it meets USPAP minimum standards- sure sound like he completed an -appraisal to me. Finally HOW many people doing Evaluations even appraisers will meet Mini um USPAP Standards ? Almost none and State Boards know that Evaluations are a lessor product completed with less work and time done and to place it under USPAP would risk the appraisers career . I have seen a USPAP compliant Report nor-have I ever seen one where the person who prepared it say it was USPAP compliant. AT best its most comparable to a Enhanced Realtors Comparative Market Analysis or a Brokers BPO.

 

[DWiley]

About two years ago, I posted on this forum appraisers in Tennesse who primarily complete these Evals. Once in a while, they complete an appraisal on their terms. One of them is a Certified USPAP instructor; the other is an MAI.

An advantage that we have in TN is that the law, and the AG's written position on the law is crystal clear. An appraiser who holds a state-issued appraisal credential can perform an Evaluation, that Evaluation has to be clearly labeled, including a notice that it is NOT an "appraisal" (as legally defined in the State), and the appraisal law and its requirements do not apply to Evaluations.

I and others at my firm(s) did thousands of Evaluations in the 29 years I worked at a firm or as a firm owner. It was very common for the local banks to use them and to engage local appraisers to do them. We billed them at the same hourly rate as appraisals, so it worked in our business plan.

How different were they from appraisals? Other than the label, not very.

 

[George Hatch]

You still don't get it an Evaluation is not an -Appraisal and in your case you should not prepare Evaluations because it doews allow the preparer to develop and deliver a product that in theory is inferior to a real full blown USPAP complaint appraisal .

You aren't getting it. The label doesn't alter the role of the individual to be competent and ethical, or the expectations of the user for the individual providing that service to to be competent and ethical (including impartial).

Under certain circumstances even some BPOs fit the definition of an appraisal, and when brokers are acting impartially and without advocacy they are acting in the role of an appraiser as defined. The labels being used don't change what the individual is doing.

As for the laws and regs, they do not establish an upper limit of conduct and performance. So as long as I meet the minimums under the law I remain free to add whatever else I think might be meaningful to their use.

I can use the "Evaluations" label on such an assignment without feeling the need to hide behind it to skip something I would normally do anyway for that type of use/user. I'm not saving any time/effort in performing the service and I'm not taking any undue risks.


.

 

[DWiley]

You still don't get it an Evaluation is not an -Appraisal and in your case you should not prepare Evaluations because it doews allow the preparer to develop and deliver a product that in theory is inferior to a real full blown USPAP complaint appraisal .

Well, there's the rub. Evaluations ARE appraisals as that term is defined in USPAP. But, in my state, they are NOT appraisals, simply because in my state that is what the law says.

This is a large part of the confusion on this topic - competing and conflicting definitions

 

[Mejappz]

An advantage that we have in TN is that the law, and the AG's written position on the law is crystal clear. An appraiser who holds a state-issued appraisal credential can perform an Evaluation, that Evaluation has to be clearly labeled, including a notice that it is NOT an "appraisal" (as legally defined in the State), and the appraisal law and its requirements do not apply to Evaluations.

I and others at my firm(s) did thousands of Evaluations in the 29 years I worked at a firm or as a firm owner. It was very common for the local banks to use them and to engage local appraisers to do them. We billed them at the same hourly rate as appraisals, so it worked in our business plan.

How different were they from appraisals? Other than the label, not very.

I agree with the first point. But how different they are is a different story. Not only do you not have to follow standards 1 and 2--but you also don't have to maintain a work file for five years. You can if you want, but it is not a requirement.

 

[George Hatch]

This is just another variation of appraisers conflating "appraisal" with just the one type of appraisal assignment they're accustomed to appraising. The idea being that nothing else is really an appraisal.