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

[George Hatch]

Again, licensing and regulation is a separate issue from "what is an appraisal". Whether in its current iteration or not, the fundamentals of our current standards predate licensing and will remain after licensing is gone.

It is no small irony in this tangent of the discussion that the *requirements* for evals are spelled out by the govt - at the federal level, no less - in the form of regulation. So much for the fantasy of the unrestrained laize faire free market.

 

[djd09]

the venal class doing their buddies a favor. no surprise here. evals, hybrids, waivers, just more racing to the bottom

 

[djd09]

c)AAA documentprovidedunderSection1103.004(4)or (5)

must contain on the first page of the document the following notice:"This is not an appraisal performed in accordance with the Uniform Standards of Professional Appraisal Practice."

a licensed appraiser inserting a statement like that seems unethical

 

[George Hatch]

It's not not at all unethical if the law requires it.

 

[djd09]

which part of USPAP don't they want to comply to, the ethic section?

 

[Mike Ault]

As the esteemed Stephen Santora once said "nobody wants an appraisal, they just want to know what the property is worth". Once $50 "evaluations" get their nose under the tent nobody will even remember what an "appraisal" is supposed to look like.

 

[Mejappz]

Just out of curiosity, when compared to what the requirements actually are for an eval assignment, how much time/effort would you guess you can save doing one of those as opposed to doing an appraisal with the same SOW?

It doesn't matter what time/effort one might save. The point is many financial institutions do not want a USPAP-compliant appraisal when they are permitted to use non-USPAP compliant evaluations. This means a loss of income for an appraiser. Would you rather have Joe "six-pack" completing these, or would you want somebody who is actually trained to value properties completing them? Either way, this won't affect me much since I live in a high-priced area and would not benefit much from them until the market eventually crashes.

I noticed Ms. Janet gave you a thumbs up in post eight, and since she is or was on the FREAB maybe, she can shine some light on what is happening in Florida regarding Evals?

 

[George Hatch]

Why are you bringing up non-appraisers and fees into this? What does that have to do with the question of "what is an appraisal?" Because that's what this discussion has been about - what the difference is between what an eval assignment requires vs what an "appraisal" requires.

The talking point is that appraisers need to be allowed to do evals instead of calling the appraisal an appraisal because otherwise they can't compete with non-appraisers due explicitly to the constraints of USPAP. IMO that entire talking point is a line of horsepoo. The real reason most CG appraiser's don't usually do those assignments is because they don't pay as much as their regular work. And that's fine, but at the same point saying that they can't compete is a gross untruth.

All appraisers do is value properties. All day, every day. The idea that an experienced appraiser cannot do what they do faster than a non-appraiser who is only dabbling at it is sheer lunacy. You can do it faster and you can do it better. "Cheaper" isn't a function of that, it's a function of what your other alternatives are for making money that day.

 

[Mejappz]

Why are you bringing up non-appraisers and fees into this?

Because the majority of individuals completing these assignments are not appraisers.

 

[Mike Ault]

All appraisers do is value properties. All day, every day. The idea that an experienced appraiser cannot do what they do faster than a non-appraiser who is only dabbling at it is sheer lunacy. You can do it faster and you can do it better. "Cheaper" isn't a function of that, it's a function of what your other alternatives are for making money that day.

I would say that eventually the majority of evaluations are going to be done as a fill-in – side hustle for realtor's teenage kids and underpaid/unqualified bank personnel. The fact that at least 75% of all appraisal work will be going this way soon does not bode well for the future. Fortunately the future does look bright for qualified appraisers advertising their services to those who will soon be harmed by this complete abdication of fiduciary responsibility.