Podcast: Play in new window | Download (Duration: 9:25 — 7.4MB)
USPAP and ammunition? What does that mean? We appraisers have made it too easy for our critics to shoot at us. Not only that, we appraisers supply our critics with the ammunition! One of the major points of contention we have with our critics is that since appraisers determine a property’s value then, in neighborhoods of color, why can’t we determine a higher number? After all, it is clear we appraisers determine value. Why is that clear? Because we say so in our reports. What do we say? We say, “…the purpose of this appraisal is to determine the subject’s market value…”, so by our own admission we determine value. But the problem is, we don’t determine value. That is a function of the market, not the appraiser. Our critics are wrong. But we’ve supplied them with all the ammunition they need.
USPAP and ammunition to our critics? USPAP gives us the solution to this problem. Look at the definition of a real estate appraisal. It is the process we go through to develop an opinion of value. There is nothing in that definition about determining anything. So USPAP gives us the ammunition to shoot back at our critics. Since USPAP makes it clear we develop a value opinion, then let’s say so in our appraisal reports!
When it comes to USPAP and ammunition, USPAP really lends a hand against our critics. USPAP provides us with the ammunition we need to fire back! How? Listen to this podcast. You’ll find out! Really, its straightforward. Thanks for listening!