Tim

Question: “A reviewer just called me. She indicated that USPAP required me to provide verification of the sales data from two different sources. I asked the reviewer to show me where this requirement was in USPAP. The reviewer did not answer my question (or apparently, appreciate my attitude in asking it), but indicated that unless I complied with her “request” in a hurry she would send a report off to the state for review and possible discipline. As you might imagine, that got my attention. Where in USPAP does it say I have to confirm my sales data with two different sources? I don’t want to make this mistake again. Help! Is that reviewer crazy?”

Question: All too often appraisers hear the complaint from the consumer (who, typically is not the client, thus we appraisers really shouldn’t care), “…the damn appraisal came in too low! That idiot appraiser doesn’t know his ass from his elbow! That’s basically why one homeowner filed a complaint against me with the state. Now what do I do?!” Typically, appraisers hear this when the contract sales price is greater than the appraised value, thus it affects the broker, too, as well as the lender, buyer, and seller. What are appraisers supposed to do when this happens?

So, what does the State look for when it asks you to send in your appraisal and workfile? It’s looking for (a) the data in your workfile to support your value conclusion in the report; and (b) it’s looking to see if the appraisal and report are credible (which, according to USPAP means worthy of belief – although USPAP does not make clear at all of whose belief the appraisal should be worthy). In short, what this means is the state looks to see if you followed Standard 1 in developing the appraisal (credibility) and Standard 2 in reporting the appraisal (not misleading).

In residential real estate appraisal, it is common to omit the protocols of the Cost Approach in all but the appraisal of new construction.  That may be common, but is it proper appraisal protocol?  One reviewer does not think so, and nicked an appraiser for this omission.  So, what does USPAP say on the matter?  The Appraiser’s Advocate, Tim Andersen, takes a look at this question and offers his thoughts on it!

When you think about them, the ibuyer platform & business model have the potential to disrupt not only the real estate brokerage business, but the real estate appraisal business as well (including USPAP). Tim Andersen, The Appraiser’s Advocate, discusses this platform & model in his latest blog, as well as raises some important questions about the future of both brokerage and appraisal. So, what will you do to continue to make a good living as an appraiser?

Really, you can’t go into a contest with your state appraisal board alone, naked, and unarmed. Why would you want to? Obviously, you need legal counsel, but you may also need USPAP counsel as well. That’s why I’m here. Question:  “My state board recently charged me with writing a misleading report.  I got the client