Does USPAP demand precision?  This is a question few appraisers have raised, so there is no specific answer to it. USPAP itself uses the word precision just once, in AO-23, but in the context of a discounted cash flow analysis.  It uses precise only four times.  But only one of those is in Standard 1.  None of them is in Standard 2.  And its use in Standard 1 is in the context of a precise definition of value.  USPAP does not use the term in the context of the value opinion itself. But, does USPAP demand precision anywhere in Standard 2 (the report writing standard), in any context?  Directly, no it does not.  However, SR2-1 demands the appraisal report be clear and accurate so that it is not misleading.  That same SR also makes it clear the client and the intended user(s) must be able to “…understand the [appraisal] report properly…” no matter the reporting format.  So, in an off-handed manner, USPAP does demand precision, although that call could be clearer and more emphatic. So, the question, “Does USPAP Demand Precision?” raises another question:  “What is precise?”, which this podcast’s purpose is to illustrate with a series of questions.    For example, in twenty (-20-) words or less, answer this question:  “In the final reconciliation, why did sale-X deserve more weight than sale-Y?”  Here is another one:  “In twenty (-20-) words or less, explain why appraisers develop value opinions, rather than provide estimates of value”.   There are so many more. “Does USPAP Demand Precision?” may be too emphatic.    Perhaps a more applicable question is, “Does USPAP Encourage Precision?”  Given what Standard 2 says about not misleading the client, about writing the report so it is easy to understand, it looks as if the answer is in the affirmative.  So, why is it that we appraisers should write precisely?  (In the podcast, I mention Einstein’s E=MC-squared formula.  Here is an explanatory link).

<a href="https://theappraisersadvocate.com/" rel="nofollow" target="_blank">Does USPAP demand precision</a>?  This is a question few appraisers have raised, so there is no specific answer to it. USPAP itself uses the word precision just once, in AO-23, but in the context of a discounted cash flow analysis.  It uses precise only four times.  But only one of those is in Standard 1.  None of them is in Standard 2.  And its use in Standard 1 is in the context of a precise definition of value.  USPAP does not use the term in the context of the value opinion itself. But, does USPAP demand precision anywhere in Standard 2 (the report writing standard), in any context?  Directly, no it does not.  However, SR2-1 demands the appraisal report be clear and accurate so that it is not <a href="https://theappraisersadvocate.com/product/uspap-and-potential-inconsistencies/" rel="nofollow" target="_blank">misleading</a>.  That same SR also makes it clear the client and the intended user(s) must be able to “…understand the [appraisal] report properly…” no matter the reporting format.  So, in an off-handed manner, USPAP does demand precision, although that call could be clearer and more emphatic. So, the question, “Does USPAP Demand Precision?” raises another question:  “What is precise?”, which this podcast’s purpose is to illustrate with a series of questions.    For example, in twenty (-20-) words or less, answer this question:  “In the final reconciliation, why did sale-X deserve more weight than sale-Y?”  Here is another one:  “In twenty (-20-) words or less, explain why appraisers develop value opinions, rather than provide estimates of value”.   There are so many more. “Does USPAP Demand Precision?” may be too emphatic.    Perhaps a more applicable question is, “Does USPAP Encourage Precision?”  Given what Standard 2 says about not misleading the client, about writing the report so it is easy to understand, it looks as if the answer is in the affirmative.  So, why is it that we appraisers should write precisely?  (In the podcast, I mention Einstein’s E=MC-squared formula.  <a href="https://www.fauske.com/blog/einsteins-original-1905-emc2-paper" rel="nofollow" target="_blank">Here</a> is an explanatory link).

DOES USPAP DEMAND PRECISION?  TAA PODCAST 114

We call this one USPAP, Transformative Appraisals, and the Public Trust.  Actually, this podcast is not USPAP oriented at all.  I have to include USPAP for SEO purposes.  However, the issues of transformative appraisals and the public trust are the orientation of this podcast. Typically, appraisers do not equate USPAP, transformative appraisals, and the public trust.  But that is unfortunate.  By not equating these concepts we have made it very hard for the public to trust us, what we do, and how we do it.  As evidence of this, consider the GSEs’ movement toward not using appraisers in certain very-limited circumstances.  This does not mean we are not necessary.  It does mean, however, we are less necessary than before.  How much of that is due to our failure to court and win the public’s trust in us? What happens when appraisers equate USPAP, transformative appraisals, and the public trust?  In all candor, I don’t know.  However, until we choose to equate them, via education and/or practical application, how many appraisals will continue to be the result of educated guesses, rules-of-thumb, and boilerplate?  And how many appraisal reports will continue to be merely an agglomeration of facts, providing the client with nothing they did not already know? So this is what we mean by USPAP, transformative appraisals, and the public trust.  Our appraisals must transform mere facts and data into information the client can use to make decisions.  For example, merely to state the GLA adjustment is $87 per square foot of difference is a fact with no information.  But what market forces made that $87 per square foot a reality?  How does $87 per square foot relate to the subject’s exposure time, highest and best use, marketability, and market value?  Mere facts do not answer those questions, nor do they give the public a reason to believe us.  If they don’t have reason to believe us, why should they trust us?  When we transform appraisals into something they can believe, when appraisal reports are reliable, then we will have transformed real estate appraisal from what it is not into the profession it should be.

We call this one USPAP, Transformative Appraisals, and the Public Trust.  Actually, this <a href="https://theappraisersadvocate.com/real-estate-appraisal-podcasts/" rel="nofollow" target="_blank">podcast</a> is not <a href="https://theappraisersadvocate.com/" rel="nofollow" target="_blank">USPAP</a> oriented at all.  I have to include USPAP for SEO purposes.  However, the issues of transformative appraisals and the public trust are the orientation of this podcast. Typically, appraisers do not equate USPAP, transformative appraisals, and the <a href="https://appraiserelearning.com/product/selecting-and-supporting-market-adjustments/" rel="nofollow" target="_blank">public trust</a>.  But that is unfortunate.  By not equating these concepts we have made it very hard for the public to trust us, what we do, and how we do it.  As evidence of this, consider the GSEs’ movement toward not using appraisers in certain very-limited circumstances.  This does not mean we are not necessary.  It does mean, however, we are less necessary than before.  How much of that is due to our failure to court and win the public’s trust in us? What happens when appraisers equate USPAP, transformative appraisals, and the public trust?  In all candor, I don’t know.  However, until we choose to equate them, via education and/or practical application, how many appraisals will continue to be the result of educated guesses, rules-of-thumb, and boilerplate?  And how many appraisal reports will continue to be merely an agglomeration of facts, providing the client with nothing they did not already know? So this is what we mean by USPAP, transformative appraisals, and the public trust.  Our appraisals must transform mere facts and data into information the client can use to make decisions.  For example, merely to state the GLA adjustment is $87 per square foot of difference is a fact with no information.  But what market forces made that $87 per square foot a reality?  How does $87 per square foot relate to the subject’s exposure time, highest and best use, marketability, and market value?  Mere facts do not answer those questions, nor do they give the public a reason to believe us.  If they don’t have reason to believe us, why should they trust us?  When we transform appraisals into something they can believe, when appraisal reports are reliable, then we will have transformed real estate appraisal from what it is not into the profession it should be.

USPAP, Transformative Appraisals, and the Public Trust – TAA Podcast 113

There is so much writing in an appraisal report!  So, what does an appraiser do when it comes to USPAP and clear &amp; persuasive appraisal reports?  Thanks for asking!  Please keep reading, too! It is no secret appraisers are not trained writers. But USPAP and clear &amp; persuasive appraisal report are not an appraisal requirement, are they?  Do  you remember all that report writing you did in appraisal school?  I don’t either.  That’s because we did not do any writing in appraisal school!  We learned to fill boxes and spaces on reporting forms.  That talent, by the way, is effectively passe’.  When the new appraisal reports debut, box-checking and space-filling will be obsolete talents.  Instead, writing clear, concise, persuasive narrative will be necessary. Anyway, USPAP and clear &amp; persuasive appraisal reports are not part of the training appraisers receive currently.  In the future, such training will not be a hallmark, either.  Appraisers will have to get that training via their own initiative.  But how and where?  Appraisal entrepreneurs may step into that breach with such classes.  But a 7-hour CE class on writing is really a waste of time.   You cannot learn to communicate clearly and persuasively in 7-hours.  And, no, templates will not work, since the reporting forms are almost an historical relic. When it comes to USPAP and clear and persuasive appraisal reports, learning the secrets of clear and persuasive writing will not come from CE.  Rather, it will come with university-level writing classes, private tutoring, and/or private mentoring.  To quote the late founder of Faber College, Emil Faber, “Knowledge is Good”.  And knowledge of communication by writing is even better!

There is so much writing in an appraisal report!  So, what does an appraiser do when it comes to <a href="https://theappraisersadvocate.com/uspap-consulting-and-compliance-services-for-real-estate-appraisers/" rel="nofollow" target="_blank">USPAP</a> and clear &amp; persuasive appraisal reports?  Thanks for asking!  Please keep reading, too! It is no secret appraisers are not trained writers. But USPAP and clear &amp; persuasive appraisal report are not an appraisal requirement, are they?  Do  you remember all that report writing you did in appraisal school?  I don’t either.  That’s because we did not do any writing in appraisal school!  We learned to fill boxes and spaces on reporting forms.  That talent, by the way, is effectively passe’.  When the new appraisal reports debut, box-checking and space-filling will be obsolete talents.  Instead, <a href="https://theappraisersadvocate.com/product/connecting-the-gses-reporting-forms-with-highest-and-best-use-what-this-all-means/" rel="nofollow" target="_blank">writing clear, concise, persuasive</a> narrative will be necessary. Anyway, USPAP and clear &amp; persuasive appraisal reports are not part of the training appraisers receive currently.  In the future, such training will not be a hallmark, either.  Appraisers will have to get that training via their own initiative.  But how and where?  Appraisal entrepreneurs may step into that breach with such classes.  But a 7-hour CE class on writing is really a waste of time.   You cannot learn to communicate clearly and persuasively in 7-hours.  And, no, templates will not work, since the reporting forms are almost an historical relic. When it comes to <a href="https://appraiserelearning.com/product/selecting-and-supporting-market-adjustments/" rel="nofollow" target="_blank">USPAP and clear and persuasive appraisal reports</a>, learning the secrets of clear and persuasive writing will not come from CE.  Rather, it will come with university-level writing classes, private tutoring, and/or private mentoring.  To quote the late founder of Faber College, Emil Faber, “Knowledge is Good”.  And knowledge of communication by writing is even better!

USPAP AND CLEAR & PERSUASIVE APPRAISAL REPORTS – TAA PODCAST 112

To answer those USPAP and Whatever questions usually means going to USPAP to get an answer.  Really, where else would you go?  USPAP is not a difficult document to read.  What affects us appraisers directly is really in the first twenty-four pages.  So, in practicality, the document is not all that long.  Its brevity is both a strength and a weakness.  Its strength is that it does not get bogged down in the minutiae of telling appraisers how to practice real estate appraisal.  What’s its weakness?  Since it has no practical solutions, it can leave appraisers in the dark about what to do and how to do it.  But, if you think about it, that’s really a strength. How is it a strength not to give practical solutions to answer those USPAP and whatever questions?  That strength is in the fact that USPAP’s restraint makes the appraiser look to USPAP for guidance.  Then, with USPAP’s guidance in mind, the appraiser comes up with her own solution to the problem.  In part, this is what USPAP means by independent, impartial, and objective.  Is an appraiser independent if she has to depend on outside influences to answer her every appraisal question? To answer those USPAP and whatever questions independently, etc. calls for the appraiser to take a number of steps.  First is to understand where (if at all) the USPAP document covers this topic.  Here’s a secret:  If the USPAP document does not mention something, even in passing, is it all that important?  Here’s an example:  USPAP does not require the appraiser to measure the subject.  Given this indifference, it is safe to assume it does not care about the standard of measurement you use.  You can’t mislead the client.  But other than that, USPAP says nothing. Therefore, to answer those USPAP questions is, in the main, your call.

To answer those <a href="https://theappraisersadvocate.com/" rel="nofollow" target="_blank">USPAP and Whatever questions</a> usually means going to USPAP to get an answer.  Really, where else would you go?  USPAP is not a difficult document to read.  What affects us appraisers directly is really in the first twenty-four pages.  So, in practicality, the document is not all that long.  Its brevity is both a strength and a weakness.  Its strength is that it does not get bogged down in the minutiae of telling appraisers how to practice real estate appraisal.  What’s its weakness?  Since it has no practical solutions, it can leave appraisers in the dark about what to do and how to do it.  But, if you think about it, that’s really a strength. How is it a strength not to give <a href="https://theappraisersadvocate.com/nine-reasons-why-you-should-hire-the-appraisers-advocate/" rel="nofollow" target="_blank">practical solutions</a> to answer those USPAP and whatever questions?  That strength is in the fact that USPAP’s restraint makes the appraiser look to USPAP for guidance.  Then, with USPAP’s guidance in mind, the appraiser comes up with her own solution to the problem.  In part, this is what USPAP means by independent, impartial, and objective.  Is an appraiser independent if she has to depend on outside influences to answer her every appraisal question? To <a href="https://appraiserelearning.com/product/selecting-and-supporting-market-adjustments/" rel="nofollow" target="_blank">answer</a> those USPAP and whatever questions independently, etc. calls for the appraiser to take a number of steps.  First is to understand where (if at all) the USPAP document covers this topic.  Here’s a secret:  If the USPAP document does not mention something, even in passing, is it all that important?  Here’s an example:  USPAP does not require the appraiser to measure the subject.  Given this indifference, it is safe to assume it does not care about the standard of measurement you use.  You can’t mislead the client.  But other than that, USPAP says nothing. Therefore, to answer those USPAP questions is, in the main, your call.

USPAP and Whatever

Appraisers have asked me about USPAP and bracketing.  What they want to know is if it is really possible to bracket every difference there is between a subject and its comparables?  Spoiler alert:  the short answer is “NO!”.  Unfortunately, the long answer is “NO!”, too.   To derive an adjustment via bracketing is just as effective and practicably applicable as is paired-sales analysis.  Paired-sales analysis is a great tool.  But where can you find the sales of two properties exactly the same in all aspects to each other, except one?  That’s the problem.  With incredibly rare exceptions, such properties do not exist. When it comes to USPAP and bracketing, we appraisers have the same dilemma we have with paired sales.  You won’t get the contributory value of a third bedroom by bracketing such a property with the sale of a two bedroom house and a four bedroom house.  Why?  All other things being equal, there are too many areas of inferiority in a two bedroom house.  Therefore, there are too many areas of superiority in a four bedroom house.  Given this, it should be clear that bracketing, at this level, results in a meaningless answer.  Yet, our friends, the lenders, want us to bracket every difference there is between the subject and the comps.  To assume this, begs the question every difference must have a counter-balancing adjustment.  Simply, the market does not support this contention even if the AMC’s reviewer insists otherwise. So, when it comes to USPAP and bracketing, appraisers understand it is a tool.  But just every problem a carpenter faces is not a nail, a hammer is not the solution to all carpentry problems.  Therefore, bracketing is not the solution to carving out an adjustment for every difference there is between the subject and a comp.  Shouldn’t this be obvious?

Appraisers have asked me about <a href="https://theappraisersadvocate.com/uspap-consulting-and-compliance-services-for-real-estate-appraisers/" rel="nofollow" target="_blank">USPAP</a> and bracketing.  What they want to know is if it is really possible to bracket every difference there is between a subject and its comparables?  Spoiler alert:  the short answer is “NO!”.  Unfortunately, the long answer is “NO!”, too.   To <a href="https://appraiserelearning.com/product/selecting-and-supporting-market-adjustments/" rel="nofollow" target="_blank">derive an adjustment</a> via bracketing is just as effective and practicably applicable as is paired-sales analysis.  Paired-sales analysis is a great tool.  But where can you find the sales of two properties exactly the same in all aspects to each other, except one?  That’s the problem.  With incredibly rare exceptions, such properties do not exist. When it comes to USPAP and bracketing, we appraisers have the same dilemma we have with paired sales.  You won’t get the contributory value of a third bedroom by bracketing such a property with the sale of a two bedroom house and a four bedroom house.  Why?  All other things being equal, there are too many areas of inferiority in a two bedroom house.  Therefore, there are too many areas of superiority in a four bedroom house.  Given this, it should be clear that bracketing, at this level, results in a meaningless answer.  Yet, our friends, the lenders, want us to bracket every difference there is between the subject and the comps.  To assume this, begs the question every difference must have a counter-balancing adjustment.  Simply, the market does not support this contention even if the AMC’s reviewer insists otherwise. So, when it comes to USPAP and bracketing, appraisers understand it is a tool.  But just every problem a carpenter faces is not a nail, a hammer is not the solution to all carpentry problems.  Therefore, bracketing is not the solution to carving out an adjustment for every difference there is between the subject and a comp.  Shouldn’t this be obvious?

USPAP and Bracketing – What’s Correct? – TAA Podcast 110

USPAP and breathing dust should conjure up leaders breathing fresh air, while the followers breathe the leader’s dust.  So far, we appraisers have chosen to follow when it comes to what the AMCs and lending industry mistakenly call “appraisal modernization”.   Without question, real estate needs to come into the 21st century.  But why did appraisers choose not to lead this assault on their own mediocrity?  Leaders breathe the fresh air.  Followers breathe their dust.  But we can change this situation!  We can take the lead!  This usurpation of the lead is not a matter of capacity.  It is a matter of will!  In a past podcast I spoke of growing a pair.  Will we?  When? USPAP and breathing dust foreshadows that appraisers do not like or want that subservient position.  So, how will we reverse it?  Education is one key.  This means taking challenging, critical thought-provoking classes.   It will require us to expand our professional horizons.  This will mean taking classes in the scientific method of inquiry, regression analysis, artificial intelligence, adjustment techniques, and other appraisal-specific topics.  It might even mean taking university-level classes on logic, reasoning, persuasive writing, public speaking, and time management. USPAP and breathing dust raises the issue of using artificial intelligence as part of any real estate appraisal and the analytics behind a credible, unbiased opinion of value.  If we don’t lead in that area, we will surely breathe the dust of those who choose to make that sacrifice.  So, are we going to enter the future breathing the pure air of leadership, or the choking dust of subservience?

USPAP and breathing dust should conjure up leaders breathing fresh air, while the followers breathe the leader’s dust.  So far, we appraisers have chosen to follow when it comes to what the AMCs and lending industry mistakenly call “appraisal modernization”.   Without question, real estate needs to come into the 21st century.  But why did appraisers choose not to lead this assault on their own mediocrity?  Leaders breathe the fresh air.  Followers breathe their dust.  But we can change this situation!  We can take the lead!  This usurpation of the lead is not a matter of capacity.  It is a matter of will!  In a past <a href="https://theappraisersadvocate.com/2023/05/uspap-and-growing-a-pair-taa-podcast-107/" rel="nofollow" target="_blank">podcast</a> I spoke of growing a pair.  Will we?  When? USPAP and breathing dust foreshadows that appraisers do not like or want that subservient position.  So, how will we reverse it?  <a href="https://appraiserelearning.com/product/selecting-and-supporting-market-adjustments/" rel="nofollow" target="_blank">Education</a> is one key.  This means taking challenging, <a href="https://www.appraisalsummit.net/" rel="nofollow" target="_blank">critical thought</a>-provoking classes.   It will require us to expand our professional horizons.  This will mean taking classes in the scientific method of inquiry, regression analysis, artificial intelligence, adjustment techniques, and other appraisal-specific topics.  It might even mean taking university-level classes on logic, reasoning, persuasive writing, public speaking, and time management. USPAP and breathing dust raises the issue of using artificial intelligence as part of any real estate appraisal and the analytics behind a credible, unbiased opinion of value.  If we don’t lead in that area, we will surely breathe the dust of those who choose to make that sacrifice.  So, are we going to enter the future breathing the pure air of leadership, or the choking dust of subservience?

USPAP and Breathing Dust – TAA Podcast 109

USPAP and all information necessary comes right out of SR1-4.  But now is the time to learn what “…all information necessary to credible assignment results…” really means.  The USPAP document itself does a poor job of explaining it.  Our 7-hour USPAP update classes do not even begin to explain this topic.  And that’s a shame.  If more appraisers were familiar with it, we would likely have less trouble with hollow charges of racism Washington, D.C. so erroneously levels against appraisers. USPAP and all information necessary means just that.  There is nothing hidden here.  Yes, it means all of the sales and listing data available to the appraiser/analyst.  But that’s not all it means.  “All information necessary for credible assignment results…” also means all of the cost and depreciation data necessary.  And this does not refer to merely listing these data.  Primarily it refers to analyzing these data.  And to analyze those data means to engage in all of the protocols of the Cost Approach.  Engage in them until you are as comfortable with their indication of value as you are with the indication of value from the sales comparison approach.  But it means more, too. USPAP and all information necessary for credible assignment results means the property’s complete analysis.  There are three analytical models, which means we analyze the the subject via the income approach, too.  But my subject is not rented, you exclaim!  So?!  You can stick a “House For Lease” sign in the front yard, right?  There are similar houses for lease in similar neighborhoods, are there not?  You know there are!  Your MLS tells you that!  So analyze those houses and then extrapolate those rental and GRM data to the subject. We avoid bias when we analyze all the data.  So, analyze all the data!

<a href="https://theappraisersadvocate.com/uspap-consulting-and-compliance-services-for-real-estate-appraisers/" rel="nofollow" target="_blank">USPAP</a> and all information necessary comes right out of SR1-4.  But now is the time to learn what “…all information necessary to credible assignment results…” really means.  The USPAP document itself does a poor job of explaining it.  Our 7-hour USPAP update classes do not even begin to explain this topic.  And that’s a shame.  If more appraisers were familiar with it, we would likely have less trouble with hollow charges of racism Washington, D.C. so erroneously levels against appraisers. USPAP and all information necessary means just that.  There is nothing <a href="https://theappraisersadvocate.com/2023/03/uspap-and-whats-omitted/" rel="nofollow" target="_blank">hidden</a> here.  Yes, it means all of the sales and listing data available to the appraiser/analyst.  But that’s not all it means.  “All information necessary for credible assignment results…” also means all of the <a href="https://appraiserelearning.com/product/selecting-and-supporting-market-adjustments/" rel="nofollow" target="_blank">cost and depreciation</a> data necessary.  And this does not refer to merely listing these data.  Primarily it refers to analyzing these data.  And to analyze those data means to engage in all of the protocols of the Cost Approach.  Engage in them until you are as comfortable with their indication of value as you are with the indication of value from the sales comparison approach.  But it means more, too. USPAP and all information necessary for <a href="https://theappraisersadvocate.com/product/connecting-the-gses-reporting-forms-with-highest-and-best-use-what-this-all-means/" rel="nofollow" target="_blank">credible</a> assignment results means the property’s complete analysis.  There are three analytical models, which means we analyze the the subject via the income approach, too.  But my subject is not rented, you exclaim!  So?!  You can stick a “House For Lease” sign in the front yard, right?  There are similar houses for lease in similar neighborhoods, are there not?  You know there are!  Your MLS tells you that!  So analyze those houses and then extrapolate those rental and GRM data to the subject. We avoid bias when we analyze all the data.  So, analyze all the data!

USPAP and All Information Necessary – TAA Podcast 108

USPAP and growing a pair?  Really?!  Isn’t that a bit risque’ for a YouTube real estate appraisal education post?  Yet, it is.  But it caught your attention, didn’t it?  That’s the purpose.  To make you stop and think.   So let’s consider this. USPAP and growing a pair means, in one sense, getting enough courage.  Enough courage to do what?  Courage to grow a pair and leave the comfortable – and generally lucrative – world of GSE appraisals.  This is probably all you’ve done throughout your entire real estate appraisal career.  It’s comfortable, isn’t it?  You know what answer goes in each box, right?  You’ve got your boilerplate down.  You’ve used that same neighborhood analysis in the last 30 reports in this neighborhood.  Life is good.  So why change?  That’s the second part about growing a pair. USPAP and growing a pair makes us ask about what the GSEs have recently done.  That comfortable real estate business as some appraisers know and have come to love, it is poised for a tectonic shift.  What shifts?  Will there be fewer appraisal assignments?  That’s a safe assumption.  Is the number of appraisers going to decrease?  Yes, but not as quickly as the number of appraisal assignments.  Are property data collectors going to take from us some of the work we did in the past?  It is naive to think otherwise. So, what are appraisers to do?  Read on! The second part of USPAP and growing a pair means growing a new set of skills to transition out of GSE work into other areas of real estate appraisal.  It also refers to growing another book or books of business to replace the GSE appraisal book.  So, yes, growing a pair has a risque’ meaning.  It also has a perfectly logical meaning – growth of new skill sets and books of business.  Thanks for listening!

USPAP and growing a pair?  Really?!  Isn’t that a bit risque’ for a YouTube real estate appraisal education post?  Yet, it is.  But it caught your attention, didn’t it?  That’s the purpose.  To make you stop and think.   So let’s consider this. USPAP and growing a pair means, in one sense, getting enough courage.  Enough courage to do what?  Courage to grow a pair and leave the <a href="https://theappraisersadvocate.com/2023/02/uspap-and-expanding-horizons-taa-podcast-102/" rel="nofollow" target="_blank">comfortable</a> – and generally lucrative – world of GSE appraisals.  This is probably all you’ve done throughout your entire real estate appraisal career.  It’s comfortable, isn’t it?  You know what answer goes in each box, right?  You’ve got your boilerplate down.  You’ve used that same <a href="https://theappraisersadvocate.com/product/analyze-the-neighborhood/" rel="nofollow" target="_blank">neighborhood analysis</a> in the last 30 reports in this neighborhood.  Life is good.  So why change?  That’s the second part about growing a pair. USPAP and growing a pair makes us ask about what the GSEs have recently done.  That comfortable real estate business as some appraisers know and have come to love, it is poised for a tectonic shift.  What shifts?  Will there be fewer appraisal assignments?  That’s a safe assumption.  Is the number of appraisers going to decrease?  Yes, but not as quickly as the number of appraisal assignments.  Are property data collectors going to take from us some of the work we did in the past?  It is naive to think otherwise. So, what are appraisers to do?  Read on! The second part of USPAP and growing a pair means growing a new set of <a href="https://appraiserelearning.com/product/selecting-and-supporting-market-adjustments/" rel="nofollow" target="_blank">skills</a> to transition out of GSE work into other areas of real estate appraisal.  It also refers to growing another book or books of business to replace the GSE appraisal book.  So, yes, growing a pair has a risque’ meaning.  It also has a perfectly logical meaning – growth of new skill sets and books of business.  Thanks for listening!

USPAP And Growing a Pair  – TAA Podcast 107

“USPAP – It Ain’t Binary” is a phrase you’ve never heard before.  Why?  Well, it is not binary.  Seldom in real estate appraisal is anything purely a one (-1-) or a zero (-0-).  We have choices to make.  There are ambiguities to unravel.  What happens when we get conflicting data from the listing broker and the selling broker?  County data say the subject has 3,327 square feet.  But our ANSI measurements shows 3,402 square feet.  A  plumbing contractor says it will cost $5,823 to repair the damage from the flood in the bathroom.  But a general contractor says a minimum of $9,000 to repair the flood damage since there may be damage to the sub-floor joists.  This is what the title of this podcast means. “USPAP – It Ain’t Binary” also means the document itself, while the universal standard for real estate appraisers and real estate appraisals, recognizes ambiguity.    How?  In some states like New York, compliance with USPAP is voluntary on the appraiser’s part (within limits, of course).  But in Illinois, if you express a value opinion about real estate or any interest in real estate, you’d better have a state appraisal credential. This podcast carries the title “USPAP – It Ain’t Binary” to recognize the fact that, despite what appraisers want, real estate appraisal rarely has a simple “YES!” or “NO!” solution.  As USPAP instructors like to say, “Well, the answer to that questions depends…”, with some qualification to the response you never thought of before.  But really, this is a benefit to us.  This allows us to amass, analyze, and interpret sufficient quantities of data to come to a value opinion or an exposure time estimate via critical thinking and synthesis.  In other words, there are no mechanical, rote, or pat answers in real estate appraisal.

“USPAP – It Ain’t Binary” is a phrase you’ve never heard before.  Why?  Well, it is not binary.  Seldom in real estate appraisal is anything purely a one (-1-) or a zero (-0-).  We have <a href="https://theappraisersadvocate.com/2023/03/uspap-and-whats-omitted/" rel="nofollow" target="_blank">choices</a> to make.  There are ambiguities to unravel.  What happens when we get conflicting data from the listing broker and the selling broker?  County data say the subject has 3,327 square feet.  But our ANSI measurements shows 3,402 square feet.  A  plumbing contractor says it will cost $5,823 to repair the damage from the flood in the bathroom.  But a general contractor says a minimum of $9,000 to repair the flood damage since there may be damage to the sub-floor joists.  This is what the title of this podcast means. “USPAP – It Ain’t Binary” also means the <a href="https://theappraisersadvocate.com/" rel="nofollow" target="_blank">document</a> itself, while the universal standard for real estate appraisers and real estate appraisals, recognizes ambiguity.    How?  In some states like New York, compliance with USPAP is voluntary on the appraiser’s part (within limits, of course).  But in Illinois, if you express a value opinion about real estate or any interest in real estate, you’d better have a state appraisal credential. This podcast carries the title “USPAP – It Ain’t Binary” to recognize the fact that, despite what appraisers want, real estate appraisal rarely has a simple “YES!” or “NO!” solution.  As USPAP instructors like to say, “Well, the <a href="https://appraiserelearning.com/product/selecting-and-supporting-market-adjustments/" rel="nofollow" target="_blank">answer</a> to that questions depends…”, with some qualification to the response you never thought of before.  But really, this is a benefit to us.  This allows us to amass, analyze, and interpret <a href="https://theappraisersadvocate.com/product/uspap-highest-and-best-use/" rel="nofollow" target="_blank">sufficient</a> quantities of data to come to a value opinion or an exposure time estimate via critical thinking and synthesis.  In other words, there are no mechanical, rote, or pat answers in real estate appraisal.

USPAP – It Ain’t Binary! – TAA Podcast 106

USPAP and standing tall?  What does that mean?  And, how is a competent real estate appraiser like a WWF pro wrestler at a ballerina’s convention?  Do ballerinas even have conventions?  And why is Tim, a real estate appraisal podcaster, concerned with WWF pro wrestlers and ballerinas?  Just where is this going?  Believe it or not, there is a relationship.  Read on and then listen to the podcast, please. USPAP and standing tall has to do with more than WWF pro wrestlers and ballerinas.  It also has to do with appraisers who are willing to stand up and stand tall in and for the profession. USPAP’s Standard 1 is the appraisal development standard.  That is not news.  Nor is it news there are still a few appraisers out there who have no clue how to develop an appraisal.  There are, however, those appraisers who have taken the time to read and understand Standard 1.  As they follow that appraisal development model, they stand tall because they stand out from their peers. What does USPAP’s Preamble have to do with USPAP and standing tall?  Basically, it gives us appraisers our marching orders.  What are those orders?  They are to promote and maintain a high level of public trust in all facets of real estate appraisal.  They are to perform professionally anytime we have our appraiser’s hat on.  They are to give the public a genuine reason to trust us.  And remember:  soldiers do not march while sitting or all hunched over and sloppy.  Rather, they stand up to march, then stand tall so they stand out. So, USPAP and standing tall means professional conduct in all things appraisal any time we have that hat on.  It also means we do our best to be outstanding.  Thanks for listening!

USPAP and standing tall?  What does that mean?  And, how is a <a href="https://theappraisersadvocate.com/" rel="nofollow" target="_blank">competent</a> real estate appraiser like a WWF pro wrestler at a ballerina’s convention?  Do ballerinas even have conventions?  And why is Tim, a real estate appraisal <a href="https://theappraisersadvocate.com/real-estate-appraisal-podcasts/" rel="nofollow" target="_blank">podcaster</a>, concerned with WWF pro wrestlers and ballerinas?  Just where is this going?  Believe it or not, there is a relationship.  Read on and then listen to the podcast, please. USPAP and standing tall has to do with more than WWF pro wrestlers and ballerinas.  It also has to do with appraisers who are willing to stand up and stand tall in and for the profession. USPAP’s Standard 1 is the appraisal development standard.  That is not news.  Nor is it news there are still a few appraisers out there <a href="https://theappraisersadvocate.com/uspap-consulting-and-compliance-services-for-real-estate-appraisers/" rel="nofollow" target="_blank">who have no clue</a> how to develop an appraisal.  There are, however, those appraisers who have taken the time to read and understand Standard 1.  As they follow that appraisal development model, they stand tall because they stand out from their peers. What does USPAP’s Preamble have to do with USPAP and standing tall?  Basically, it gives us appraisers our marching orders.  What are those orders?  They are to promote and maintain a high level of public trust in all facets of real estate appraisal.  They are to perform professionally anytime we have our appraiser’s hat on.  They are to give the public a genuine reason to trust us.  And remember:  soldiers do not march while sitting or all hunched over and sloppy.  Rather, they stand up to march, then stand tall so they stand out. So, USPAP and standing tall means professional conduct in all things appraisal any time we have that hat on.  It also means we do our best to be outstanding.  Thanks for listening!

USPAP and Standing Tall – TAA Podcast 105

Tim Andersen, The Appraiser’s Advocate, enlightens you on all things related to Real Estate Appraisal

USPAP and What’s Omitted?  What does that mean?  Really, we mean what’s omitted from your appraisal and report.  It is true, you should omit very little from the appraisal, as well as from the report.  Why?  A sale is not a comparable sale unless it has the same highest and best use as the subject.  So, appraisers cannot omit those analyses.  How about neighborhood analysis? Fannie Mae wants answers to thirty-six questions about the neighborhood.  There is nothing about the neighborhood the appraiser can omit from the appraisal or the report.  USPAP’s SR1-6 calls for a complete reconciliation.  So, no, the appraiser cannot omit that, either.  Then, just what can the appraiser omit? USPAP and What’s Omitted refers to unnecessary stuff.  What is unnecessary stuff in a real estate appraisal and report? You can probably omit the analyses of the Income Approach if you’re appraising your basic cookie-cutter house (although not always).  Most assuredly, you do not need a level-C or -D market analysis to appraise credible a single family residence. According to USPAP, you can omit pictures, too, since there is nothing in that document calling for them to be part of the appraisal or the report.  So, yes, there is stuff you can reliably omit from your typical GSE appraisal.  But let’s also talk about omitting the really necessary stuff. Read your report carefully, please.  USPAP and What’s Omitted refers to stuff you should not omit from the appraisal or the report.  When you listen to this podcast, pay attention to what the State of Alabama did.  This appraiser chose to omit from the report a summary for the analyses and market support behind all the adjustments.  Omission of these analyses and rendered the appraisal not credible and the report misleading.  To omit something this simple violated USPAP.

USPAP and What’s Omitted?  What does that mean?  Really, we mean what’s omitted from your appraisal and report.  It is true, you should omit very little from the appraisal, as well as from the report.  Why?  A sale is not a comparable sale unless it has the same <a href="https://theappraisersadvocate.com/product/connecting-the-gses-reporting-forms-with-highest-and-best-use-what-this-all-means/" rel="nofollow" target="_blank">highest and best use</a> as the subject.  So, appraisers cannot omit those analyses.  How about <a href="https://theappraisersadvocate.com/product/analyze-the-neighborhood/" rel="nofollow" target="_blank">neighborhood analysis? </a>Fannie Mae wants answers to thirty-six questions about the neighborhood.  There is nothing about the neighborhood the appraiser can omit from the appraisal or the report.  USPAP’s SR1-6 calls for a complete <a href="https://theappraisersadvocate.com/product/a-uspap-compliant-reconciliation/" rel="nofollow" target="_blank">reconciliation</a>.  So, no, the appraiser cannot omit that, either.  Then, just what can the appraiser omit? USPAP and What’s Omitted refers to unnecessary stuff.  What is unnecessary stuff in a real estate appraisal and report? You can probably omit the analyses of the Income Approach if you’re appraising your basic cookie-cutter house (although not always).  Most assuredly, you do not need a level-C or -D market analysis to appraise credible a single family residence. According to USPAP, you can omit pictures, too, since there is nothing in that document calling for them to be part of the appraisal or the report.  So, yes, there is stuff you can reliably omit from your typical GSE appraisal.  But let’s also talk about omitting the really necessary stuff. Read your report carefully, please.  USPAP and What’s Omitted refers to stuff you should not omit from the appraisal or the report.  When you listen to this podcast, pay attention to what the State of Alabama did.  This appraiser chose to omit from the report a summary for the analyses and market support behind all the adjustments.  Omission of these analyses and rendered the appraisal not credible and the report misleading.  To omit something this simple violated USPAP.

USPAP and What’s Omitted – TAA Podcast 104

USPAP and pending contracts.  What does that mean?  It means its is perfectly OK to use the pending purchase and sale contract on your subject as a comparable!  Underwriters will swear that is a violation of USPAP!  Reviewers will need to buy red pens by the gross to mark-up reports if that happens!  Heads will explode!  GSEs will start to care about appraisers and what they think of the 1004 form! Civilizations will crumble!  The Republican party will  finally get its act together and elect a candidate to the White House!  All of these are stinky hogwash since they will never happen, even if appraisers start to use the purchase and sale agreement as a comp.  (OK, if appraisers start using the purchase and sale agreement as a comp, civilizations may crumble.) In fact, when it comes to USPAP and pending contracts, it may be internally inconsistent not to use contracts as comps.  USPAP says nothing about this phenomenon. Actually, the Fannie Mae Selling Guide encourages it.   A contract is nothing more than another data point to analyze. So, why not analyze it as if it were a comparable sale?  It is a component of neighborhood trends.  So why not analyze it as part of neighborhood analysis? Since USPAP and pending contracts is such an important concept, it is important to understand.  That understanding starts here!  Thanks for listening!

USPAP and pending contracts.  What does that mean?  It means its is perfectly OK to use the pending purchase and sale contract on your subject as a comparable!  Underwriters will swear that is a <a href="https://theappraisersadvocate.com/2023/01/uspap-and-the-nick/" rel="nofollow" target="_blank">violation of USPAP</a>!  Reviewers will need to buy red pens by the gross to mark-up reports if that happens!  Heads will explode!  GSEs will start to care about appraisers and what they think of the 1004 form! Civilizations will crumble!  The Republican party will  finally get its act together and elect a candidate to the White House!  All of these are stinky hogwash since they will never happen, even if appraisers start to use the purchase and sale agreement as a comp.  (OK, if appraisers start using the purchase and sale agreement as a comp, civilizations may crumble.) In fact, when it comes to USPAP and pending contracts, it may be<a href="https://theappraisersadvocate.com/product/uspap-and-potential-inconsistencies/" rel="nofollow" target="_blank"> internally inconsistent</a> not to use contracts as comps.  USPAP says nothing about this phenomenon. Actually, the <a href="https://singlefamily.fanniemae.com/media/33571/display" rel="nofollow" target="_blank">Fannie Mae Selling Guide</a> encourages it.   A contract is nothing more than another data point to analyze. So, why not analyze it as if it were a comparable sale?  It is a component of<a href="https://theappraisersadvocate.com/product/analyze-the-neighborhood/" rel="nofollow" target="_blank"> neighborhood trends</a>.  So why not analyze it as part of neighborhood analysis? Since USPAP and pending contracts is such an important concept, it is important to understand.  That understanding starts here!  Thanks for listening!

USPAP and Pending Contracts – TAA podcast 103

USPAP and expanding horizons.  Now that the appraisal business is slow, it’s time to expand your horizons.  This means taking steps you have never taken before.  It means engaging in activities in which you’ve never engaged before. We will need to adopt a mindset we have never adopted before.  In other words, it means change.  Appraisers fight change.  We are accustomed to a single set of appraisal protocols. It is common to fill out the 1004 form in the same way as always.  We use the same boilerplate. It was Albert Einstein who taught us that it is insanity to continue to engage in the same activities, yet expect different results from those we achieved before. Therefore, as the real estate appraisal business changes, as the economy changes, we must be ready for those changes. When we talk about USPAP and expanding horizons, what we mean is change is inevitable. Literally, since the beginning of 2023, the progress of artificial intelligence has increased more than it has in the last two years.  AI will continue to integrate into all areas of real estate appraisal, especially into the composition of appraisal reports. Are we going to expand our horizons and adapt AI to real estate appraisal?  Or, are we going to fight it while the rest of the mortgage lending continuum takes advantage of it? USPAP is not a perfect document.  However, it is dynamic.  It is adaptable to change.  So, as we consider USPAP and expanding horizons, are we adaptable to change?  Are we going to take advantage of the educational opportunities these changes will demand?  Are we going to capitalize on this new technology to improve the way we write our reports? USPAP and expanding horizons means we have a choice.  We can keep our own status quo which essentially means we will be falling behind. Or we can adopt and adapt.  Real estate appraisers tend to be smart, analytical folks.  If I we’re going to bet the mortgage payment, I would bet that appraisers will adopt and adapt. What do you think?

<a href="https://theappraisersadvocate.com/" rel="nofollow" target="_blank">USPAP</a> and expanding horizons.  Now that the appraisal business is slow, it’s time to expand your horizons.  This means taking steps you have never taken before.  It means <a href="https://theappraisersadvocate.com/nine-reasons-why-you-should-hire-the-appraisers-advocate/" rel="nofollow" target="_blank">engaging in activities</a> in which you’ve never engaged before. We will need to adopt a mindset we have never adopted before.  In other words, it means change.  Appraisers fight change.  We are accustomed to a single set of appraisal protocols. It is common to fill out the 1004 form in the same way as always.  We use the same boilerplate. It was Albert Einstein who taught us that it is insanity to continue to engage in the same activities, yet expect different results from those we achieved before. Therefore, as the real estate appraisal business changes, as the economy changes, we must be ready for those changes. When we talk about USPAP and expanding horizons, what we mean is change is inevitable. Literally, since the beginning of 2023, the progress of artificial intelligence has increased more than it has in the last two years.  AI will continue to integrate into all areas of real estate appraisal, especially into the composition of appraisal reports. Are we going to expand our horizons and adapt AI to real estate appraisal?  Or, are we going to fight it while the rest of the mortgage lending continuum takes advantage of it? USPAP is not a perfect document.  However, it is dynamic.  It is adaptable to change.  So, as we consider USPAP and expanding horizons, are we adaptable to change?  Are we going to take advantage of the <a href="https://appraiserelearning.com/product/selecting-and-supporting-market-adjustments/" rel="nofollow" target="_blank">educational opportunities</a> these changes will demand?  Are we going to capitalize on this new technology to improve the way we write our reports? USPAP and expanding horizons means we have a choice.  We can keep our own status quo which essentially means we will be falling behind. Or we can adopt and adapt.  Real estate appraisers tend to be smart, analytical folks.  If I we’re going to bet the mortgage payment, I would bet that appraisers will adopt and adapt. What do you think?

USPAP and Expanding Horizons – TAA Podcast 102

USPAP and three questions?  What does that mean?  It means that, in this podcast, we are going to tackle three questions.  They are questions appraisers constantly ask.  This consistency means that these answers are not cast in stone.  That is a shame.  Therefore, we’re going to answer them in a manner that is applicable to any appraisal and report. Uspap and three questions is vital for appraisers. In short, the three questions are, “How do I confirm a comparable sale?”.  The next is “What does a state investigator look for in my work file?”.   And, finally, “ What is enough support in my work file?” We are also going to look at these questions from a perspective you’ve probably never considered before. So, uspap and three questions will raise novel issues.  It’s also likely that as you formulate your answers to them, you’ll come to understand residential real estate appraisal, and even highest and best use, better than you did before. There are great CE classes out there.  However, you’ll find none of them cover these three questions in any depth. That, too, is a shame since these questions continue to merit straightforward and unambiguous answers. Contemplate uspap and three important questions.  In addition, given the fact that business has slowed for so many appraisers, this may be a great time to sharpen your saws.  It might be a good time to ask an expert to audit some of your reports, just to make sure they are as clean and uspap- compliant as they should be. Thanks for listening!  please hit that subscribe button!  More of these podcasts are on the way. One comes out about every two weeks. Remember to contact me at tim@theappraisersadvocate.com Thanks!  And, as always, my best!

USPAP and three questions?  What does that mean?  It means that, in this <a href="https://theappraisersadvocate.com/real-estate-appraisal-podcasts/" rel="nofollow" target="_blank">podcast</a>, we are going to tackle three questions.  They are questions appraisers constantly ask.  This consistency means that these answers are not cast in stone.  That is a shame.  Therefore, we’re going to answer them in a manner that is applicable to any appraisal and report. Uspap and three questions is vital for appraisers. In short, the three questions are, “How do I confirm a comparable sale?”.  The next is “What does a state investigator look for in my work file?”.   And, finally, “ What is enough support in my work file?” We are also going to look at these questions from a perspective you’ve probably never considered before. So, uspap and three questions will raise novel issues.  It’s also likely that as you formulate your answers to them, you’ll come to understand residential real estate appraisal, and even<a href="https://theappraisersadvocate.com/product/uspap-highest-and-best-use/" rel="nofollow" target="_blank"> highest and best use</a>, better than you did before. There are <a href="https://appraiserelearning.com/product/selecting-and-supporting-market-adjustments/" rel="nofollow" target="_blank">great CE classes</a> out there.  However, you’ll find none of them cover these three questions in any depth. That, too, is a shame since these questions continue to merit straightforward and unambiguous answers. Contemplate uspap and three important questions.  In addition, given the fact that business has slowed for so many appraisers, this may be a great time to sharpen your saws.  It might be a good time to ask an expert to audit some of your reports, just to make sure they are as clean and uspap- compliant as they should be. Thanks for listening!  please hit that subscribe button!  More of these podcasts are on the way. One comes out about every two weeks. Remember to contact me at tim@theappraisersadvocate.com Thanks!  And, as always, my best!

USPAP and Three Questions – TAA Podcast 101

USPAP and (un)intentional omissions?  What does that mean?  Unintentional omissions makes sense.  But why would an appraiser intentionally omit something? And that’s the question.  Why would the appraiser intentionally omit the analyses of the cost approach from the appraisal?  And why would the appraiser intentionally omit the results of those analyses from the report?  These don’t make a lot of sense, right?  Yet that is exactly what happens in many residential appraisals. When it comes to USPAP and (un)intentional omissions, that refers to excuses, not reasons.  Excuses?  How about, “the cost approach was not utilized since calculation of accrued depreciation in older houses is difficult”?  That statement is not the reasoning behind its omission.  It is, instead, an excuse to cut a corner.  In turn, that is justification to avoid a professionally embarrassing situation.  Chances are, that appraiser does not know how to complete the cost approach analyses credibly. So, to avoid USPAP and (un)intentional omissions, it is first necessary to understand when an omission is OK.  But, to omit the cost approach, the appraisers must carry out the protocols.  This means concluding a vacant site value.  Then analyzing the property’s physical characteristics to calculate its replacement cost credibly.  Next, the appraiser extracts market-based accrued depreciation.  Now the cost approach is complete. Since it is complete, does it indicate anything the sales comparison did not already tell the appraiser.  If it sheds no further light on the subject’s market value, then omit it from the report.  But first, it was necessary to prove it added nothing.  A competent appraiser does not merely assume that.  Thanks for listening!

USPAP and (un)intentional omissions?  What does that mean?  Unintentional omissions makes sense.  But why would an appraiser intentionally omit something? And that’s the question.  Why would the appraiser intentionally omit the analyses of the cost approach from the appraisal?  And why would the appraiser intentionally omit the <a href="https://theappraisersadvocate.com/2022/10/uspap-and-non-traditional-appraisals/" rel="nofollow" target="_blank">results of those analyses from the report</a>?  These don’t make a lot of sense, right?  Yet that is exactly what happens in many residential appraisals. When it comes to USPAP and (un)intentional omissions, that refers to excuses, not reasons.  Excuses?  How about, “the cost approach was not utilized since calculation of accrued depreciation in older houses is difficult”?  That statement is not the<a href="https://theappraisersadvocate.com/product/50-questions-on-uspap/" rel="nofollow" target="_blank"> reasoning</a> behind its omission.  It is, instead, an excuse to cut a corner.  In turn, that is justification to avoid a professionally embarrassing situation.  Chances are, that appraiser does not know how to complete the cost approach analyses credibly. So, to avoid<a href="https://theappraisersadvocate.com/uspap-consulting-and-compliance-services-for-real-estate-appraisers/" rel="nofollow" target="_blank"> USPAP</a> and (un)intentional omissions, it is first necessary to understand when an omission is OK.  But, to omit the cost approach, the appraisers must carry out the protocols.  This means concluding a vacant site value.  Then analyzing the property’s physical characteristics to calculate its replacement cost credibly.  Next, the appraiser extracts market-based accrued depreciation.  Now the cost approach is complete. Since it is complete, does it indicate anything the sales comparison did not already tell the appraiser.  If it sheds no further light on the subject’s market value, then omit it from the report.  But first, it was necessary to prove it added nothing.  A competent appraiser does not merely assume that.  Thanks for listening!

USPAP AND (UN)INTENTIONAL OMISSIONS – Did You Really Mean to Omit the Cost Approach from Your Appraisal? – TAA Podcast 100

USPAP and enough iterations.  What does that mean?  Really, it relates to what is in your workfile.  Or, what is supposed to be in your workfile.  OK, what is supposed to be in the workfile?  Everything.  But that answer is too general and too ambiguous really to mean anything.  Let’s see if we can be more specific, more inclusive, shall we? When it comes to USPAP and enough iterations, we really mean analytics.  We mean the quantity of analyses necessary to come to a credible value conclusion.  Wait a minute!  This sounds as if we are talking a lot of work here!  Frankly, we may be doing just that.  You see, we cannot really analyze a comparable sale, for example, without exposing it to multiple analyses.  Yes.  When the GSEs talk about market value, they refer to a sale that meets the criteria in it.  Specifically, there are five criteria in the definition.  All of these must be present.  If they are not, the sale is not a market value transaction.  So, in the workfile there must be enough analyses to demonstrate both that and how we determined “…a reasonable time [was] allowed for [the subject’s] exposure in the open market…”.  By doing the research to answer those five questions we engage in analytics.  We have analyzed a sale to the point we conclude it was or was not a market value transaction.  These are the iterations we go through to reach this decision. So, as we look at USPAP and enough iterations, we mean the extent of our analytics.  We look at the extent of what we did to determine it was enough.  Then, we keep all those iterations in the workfile.  Why?  We do that to demonstrate both our knowledge of and compliance with USPAP.  You’re welcome!

USPAP and enough iterations.  What does that mean?  Really, it relates to what is in your workfile.  Or, what is supposed to be in your workfile.  OK, what is supposed to be in the workfile?  Everything.  But that answer is too general and too ambiguous really to mean anything.  Let’s see if we can be more specific, more inclusive, shall we? When it comes to USPAP and enough iterations, we really mean analytics.  We mean the quantity of analyses necessary to come to a credible value conclusion.  Wait a minute!  This sounds as if we are talking a lot of work here!  Frankly, we may be doing just that.  You see, we cannot really analyze a comparable sale, for example, without exposing it to multiple analyses.  Yes.  When the <a href="https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B4-Underwriting-Property/Chapter-B4-1-Appraisal-Requirements/Section-B4-1-1-General-Appraisal-Requirements/1032991751/B4-1-1-01-Definition-of-Market-Value-04-15-2014.htm" rel="nofollow" target="_blank">GSEs</a> talk about market value, they refer to a sale that meets the criteria in it.  Specifically, there are five criteria in the definition.  All of these must be present.  If they are not, the sale is not a market value transaction.  So, in the workfile there must be enough analyses to demonstrate both that and how we determined “…a reasonable time [was] allowed for [the subject’s] exposure in the open market…”.  By doing the <a href="https://theappraisersadvocate.com/nine-reasons-why-you-should-hire-the-appraisers-advocate/" rel="nofollow" target="_blank">research</a> to answer those five questions we engage in analytics.  We have analyzed a sale to the point we conclude it was or was not a market value transaction.  These are the iterations we go through to reach this decision. So, as we look at USPAP and enough iterations, we mean the extent of our analytics.  We look at the extent of what we did to determine it was enough.  Then, we keep all those iterations in the workfile.  Why?  We do that to demonstrate both our knowledge of and compliance with USPAP.  You’re welcome!

USPAP and Enough Iterations – TAA Podcast 099

USPAP and the NICK.  What does that mean?  Has a reviewer ever told you some part of your report was not right?  Gave you a hard time on it?  Told you to re-do something?  That’s the nick.  But there is help!  There are ways to avoid the nick in the future.  Read on! When we talk about USPAP and the nick, for example, did that reviewer say your neighborhood analysis was just a collection of facts?  It really did not analyze the neighborhood?  From reviewers, that is a common comment, as well as one that is entirely avoidable, too!  Or, how about the nick from the reviewer that your reconciliation did not meet USPAP’s SR1-6?  That, too, is something you can avoid. So, how do you avoid USPAP and the nick?  There is not much you can do to avoid USPAP.  That’s cast in granite, right?  But avoiding the nick is much easier.  And that’s exactly what we cover in the podcast – ways to avoid the nick.  This can be easier than you might think.  How?  Avoid meaningless statements such as, “…the subject is in a good neighborhood”.  Why?  OK, what’s a good neighborhood?  How did you measure that goodness objectively?  You avoid this problem by instead telling your client the three, four, or five reasons the market wants to purchase in the subject’s neighborhood. You avoid USPAP and the nick, for example, by complying with USPAP to use logic and reasoning to explain why you did or did not do something as part of your appraisal. Again, you explain to your client why the market wants to purchase houses in the subject’s neighborhood.  You avoid merely telling the client that the market wants to buy in the subject’s neighborhood.  You avoid that nick when you communicate with your client, not merely tell the client something.

USPAP and the NICK.  What does that mean?  Has a reviewer ever told you some part of your report was not right?  Gave you a hard time on it?  Told you to re-do something?  That’s the nick.  But there is help!  There are ways to avoid the nick in the future.  Read on! When we talk about USPAP and the nick, for example, did that reviewer say your <a href="https://theappraisersadvocate.com/product/analyze-the-neighborhood/" rel="nofollow" target="_blank">neighborhood analysis</a> was just a collection of facts?  It really did not <a href="https://theappraisersadvocate.com/2022/11/uspap-and-neighborhood-analysis/" rel="nofollow" target="_blank">analyze the neighborhood</a>?  From reviewers, that is a common comment, as well as one that is entirely avoidable, too!  Or, how about the nick from the reviewer that your <a href="https://theappraisersadvocate.com/product/a-uspap-compliant-reconciliation/" rel="nofollow" target="_blank">reconciliation</a> did not meet USPAP’s SR1-6?  That, too, is something you can avoid. So, how do you avoid USPAP and the nick?  There is not much you can do to avoid USPAP.  That’s cast in granite, right?  But avoiding the nick is much easier.  And that’s exactly what we cover in the podcast – ways to avoid the nick.  This can be easier than you might think.  How?  Avoid meaningless statements such as, “…the subject is in a good neighborhood”.  Why?  OK, what’s a good neighborhood?  How did you measure that goodness objectively?  You avoid this problem by instead telling your client the three, four, or five reasons the market wants to purchase in the subject’s neighborhood. You avoid USPAP and the nick, for example, by complying with USPAP to use logic and reasoning to explain why you did or did not do something as part of your appraisal. Again, you explain to your client why the market wants to purchase houses in the subject’s neighborhood.  You avoid merely telling the client that the market wants to buy in the subject’s neighborhood.  You avoid that nick when you communicate with your client, not merely tell the client something.

USPAP and The Nick – TAA Podcast 098

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!

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 <a href="https://theappraisersadvocate.com/product/uspap-and-potential-inconsistencies/" rel="nofollow" target="_blank">market</a>, 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 <a href="https://theappraisersadvocate.com/real-estate-appraisal-podcasts/" rel="nofollow" target="_blank">podcast</a>.  You’ll find out!  Really, its straightforward.  Thanks for listening!

USPAP and Ammunition – TAA Podcast 097

USPAP and sharp saws?  What do USPAP have to do with sharp saws?  Things are slow right now, right?  Volume of orders is less than it was even two months ago, correct?  So, now you have some free time.  Read some books.  Listen to some podcasts.   Take some classes.  That’s what you do when you have some free time.  You sharpen that saw. When it comes to USPAP and sharp saws, what should you do to sharpen the saws you use everyday?  Take some classes.  Not just CE classes.  Every appraiser takes CE classes.  Generally, CE classes do not sharpen your saws.  You need something extra.  Something that will set you apart.  Something that makes your client base stand up and take notice! When you are sharp, for example, you understand how to use spreadsheet programs.  There are plenty of these classes on the internet.  Some are free.  Some have a modest tuition. All will take some effort on your part.  But now you have that free time.  Now you can put in that extra effort to educate yourself into excellence. USPAP and sharp saws also means become a better writer.  Appraisers communicate using the written word.  But there is not a class in QE or CE to teach you how to write.  You need to write clearly, concisely, and persuasively.  You produce a credible value opinion.  But if it does not lead your client clearly, concisely, and persuasively to your value conclusion, what good is the appraisal report? All this means you educate yourself into excellence.  Start now, while things are slow.  In this interim, take the time to learn at least one new skill.  Sharpen your saw when there are few trees to cut down.  You’ll be glad you did!

USPAP and sharp saws?  What do USPAP have to do with sharp saws?  Things are slow right now, right?  Volume of orders is less than it was even two months ago, correct?  So, now you have some free time.  <a href="https://theappraisersadvocate.com/product/uspap-highest-and-best-use/" rel="nofollow" target="_blank">Read some books</a>.  Listen to some <a href="https://theappraisersadvocate.com/2022/11/uspap-and-the-neighborhood/" rel="nofollow" target="_blank">podcasts.</a>   Take some <a href="https://appraiserelearning.com/product/selecting-and-supporting-market-adjustments/" rel="nofollow" target="_blank">classes</a>.  That’s what you do when you have some free time.  You sharpen that saw. When it comes to USPAP and sharp saws, what should you do to sharpen the saws you use everyday?  Take some classes.  Not just CE classes.  Every appraiser takes CE classes.  Generally, CE classes do not sharpen your saws.  You need something extra.  Something that will set you apart.  Something that makes your client base stand up and take notice! When you are sharp, for example, you understand how to use spreadsheet programs.  There are plenty of these classes on the internet.  Some are free.  Some have a modest tuition. All will take some effort on your part.  But now you have that free time.  Now you can put in that extra effort to educate yourself into excellence. USPAP and sharp saws also means become a <a href="https://theappraisersadvocate.com/product/analyze-the-neighborhood/" rel="nofollow" target="_blank">better writer</a>.  Appraisers communicate using the written word.  But there is not a class in QE or CE to teach you how to write.  You need to write clearly, concisely, and persuasively.  You produce a credible value opinion.  But if it does not lead your client clearly, concisely, and persuasively to your value conclusion, what good is the appraisal report? All this means you educate yourself into excellence.  Start now, while things are slow.  In this interim, take the time to learn at least one new skill.  Sharpen your saw when there are few trees to cut down.  You’ll be glad you did!

USPAP and Sharp Saws – TAA Podcast 096

When it comes to USPAP and neighborhood analysis, many appraisers think such an analysis is a waste of time.  After all, every house in the US is near shopping, schools, houses of worship, entertainment, and recreation, right?  But what does Fannie Mae say about neighborhood analysis?  She makes her demands really clear in section B4-1.3-03, Neighborhood Section of the Appraisal Report, under “Neighborhood Analysis”.  In fact, there are 36 criteria she looks for in this analysis in addition to merely highest and best use.  In fact, in this podcast, we cover five of those 36 just to make sure you’re familiar with them. So, why do some appraisers think USPAP and neighborhood analysis are a waste of time?  Well, first of all they are entitled to their opinions, right?  Second of all, there is not enough space on that archaic and poorly designed 1004 form.  Third, they think the neighborhood section is merely the location for more boilerplate.  In reality, it is not such a location.  In fact, if the appraiser answers all 36 of Fannie Mae’s questions, it is going to be really hard for someone to call out an appraiser on bias.  How so?  If the appraiser analyzes the neighborhood, and then answers all 36 of those questions, it will be obvious s/he has considered all the options.  When that happens, there is no bias. So, when we appraisers pay attention to USPAP and neighborhood analysis, we are really (1) giving the client a clear picture of what’s happening in the neighborhood.  And (2) we are working to cover our assets, too!

When it comes to USPAP and neighborhood analysis, many appraisers think such an analysis is a waste of time.  After all, every house in the US is near shopping, schools, houses of worship, entertainment, and recreation, right?  But what does Fannie Mae say about <a href="https://selling-guide.fanniemae.com/" rel="nofollow" target="_blank">neighborhood analysis</a>?  She makes her demands really clear in section B4-1.3-03, Neighborhood Section of the Appraisal Report, under “Neighborhood Analysis”.  In fact, there are <a href="https://theappraisersadvocate.com/product/analyze-the-neighborhood/" rel="nofollow" target="_blank">36 criteria</a> she looks for in this analysis in addition to merely <a href="https://theappraisersadvocate.com/product/uspap-highest-and-best-use/" rel="nofollow" target="_blank">highest and best use</a>.  In fact, in this podcast, we cover five of those 36 just to make sure you’re familiar with them. So, why do some appraisers think USPAP and neighborhood analysis are a waste of time?  Well, first of all they are entitled to their opinions, right?  Second of all, there is not enough space on that archaic and poorly designed 1004 form.  Third, they think the neighborhood section is merely the location for more boilerplate.  In reality, it is not such a location.  In fact, if the appraiser answers all 36 of Fannie Mae’s questions, it is going to be really hard for someone to call out an appraiser on bias.  How so?  If the appraiser analyzes the neighborhood, and then answers all 36 of those questions, it will be obvious s/he has considered all the options.  When that happens, there is no bias. So, when we appraisers pay attention to USPAP and neighborhood analysis, we are really (1) giving the client a clear picture of what’s happening in the neighborhood.  And (2) we are working to cover our assets, too!

USPAP and Neighborhood Analysis.  What You Need to Know Now!

Love this podcast!  Tim has a wealth of information and he is so generous to share it with the rest of the appraisal world.  Every episode is informative, helpful, and fun!

Golden Voice, Golden Content

Tim is amazingly knowledgeable and has a fantastic personality!

Amazing

Tim Andersen, The Appraiser's Advocate Podcast 

Diana Jacob

When Diana Jacob speaks on USPAP, or any real estate-related topic, the wise listen.  Tim Andersen, The Appraiser’s Advocate, interviews Diana.  She covers a wide variety of topics with her typical intelligence and down-to-earth sense of humor.  Thanks for listening!

When Diana Jacob speaks on USPAP, or any real estate-related topic, the wise listen. Tim Andersen, The Appraiser’s Advocate, interviews Diana. She covers a wide variety of topics with her typical intelligence and down-to-earth sense of humor. Thanks for listening!

Diana Jacob, One of the Great Ones, is in the House! – TAA Podcast 017

Craig Morley

Craig Morely, NAR’s Chair of the Appraisal  Committee and former Chair of the Utah state appraisal board, visits with Tim Andersen, The Appraiser’s Advocate, to give his take on the Strengths, Weaknesses, Opportunities, and Threats facing real estate appraisers, and the real estate appraisal industry, today.  This is a must-listen podcast!

Craig Morely, NAR’s Chair of the Appraisal Committee and former Chair of the Utah state appraisal board, visits with Tim Andersen, The Appraiser’s Advocate, to give his take on the Strengths, Weaknesses, Opportunities, and Threats facing real estate appraisers, and the real estate appraisal industry, today. This is a must-listen podcast!

The Appraiser’s SWOT Team, with Craig Morley – TAA Podcast 020

Confused over SR2-3, the Certification Standard?  Tim Andersen, The Appraiser's Advocate, helps to alleviate that problem...and explains the difference between a fact and a conclusion, too

Confusion Over Standards Rule 2-3, the Certification Standard?  Yes, That Make’s Sense -TAA Podcast 016

Trees typically do not move very far, very fast, or very often.  However, is there something in your appraisal report that suggests they could? Do your reports always communicate what you want them to communicate?  In this podcast, #Tim Andersen, #The Appraiser's Advocate, without being too wooden in his narrative, helps you add strength and timber to your reports and covers these solid yet moving real estate appraisal report issues.  Thanks for listening!

Stop that Tree Before it Gets Away! – TAA Podcast 018

Pave

Is the road to Hell paved with Good Intentions?  Is USPAP that road to Hell?  Only you can decide that for yourself, but Tim Andersen, The Appraiser's Advocate, is willing to go along with you for the ride!  Thanks for listening!

Yes!  Good Intentions Do Pave That Freeway! – TAA Podcast 021

Ever think of AFFORDABILITY as on of the areas of analysis for a client?  Tim Andersen, The Appraiser's Advocate and recognized USPAP expert takes on this challenge.  AVMs can't handle it, BPOs don't include this analysis, and evaluations do not even consider analyses to this depth.  Only appraisers can do this!  Thanks for listening!

I Couldn’t Think of a Snappy Name for this Podcast – TAA Podcast 019

Want to hear about what's going on in appraisalworld from somebody who knows?  Tim Andersen, The Appraiser's Advocate, interviews Craig Morley, the former chair of the Utah appraisal board.  You'll enjoy his remarks!

An Interview with Craig Morley – TAA Podcast 015

Falling off my bike.  What a terrible way to learn some life lessons.  Especially when that fall takes place in the rain!  Consequently, there are lessons here for you to learn without having to fall from yours.  On the other hand, fall from your bike in the rain if you want to.  But, learning from my mistakes is quicker – and way less painful.  Moreover, there are even some real estate appraisal lessons to learn from, too.  What are they?  Preparation.  Gratitude.  Asking for help from experts and consultants when you need it.  Love of and for family.  The important stuff.  And oh, yea.  Pavement is really hard, so don’t fall on it.  That’s another lesson.  Take it from Tim Andersen, the Appraiser’s advocate.  There are better ways to learn life’s lessons than falling off a bike.  More fun, too.   That’s something I’m going to do my best to avoid!  So should you!

Falling off my bike. What a terrible way to learn some life lessons. Especially when that fall takes place in the rain! Consequently, there are lessons here for you to learn without having to fall from yours. On the other hand, fall from your bike in the rain if you want to. But, learning from my mistakes is quicker – and way less painful. Moreover, there are even some <a href="https://www.youtube.com/watch?v=HYe_y5QvLNM&amp;t=404s" rel="nofollow" target="_blank">real estate appraisal lessons</a> to learn from, too. What are they? Preparation. Gratitude. Asking for help from <a href="https://www.datamasterusa.com/?gclid=CjwKCAjw5cL2BRASEiwAENqAPpi06kYUsxMshMythLO3gXMr4Jb5ebZoEr6l2YuLm2VqCCCsxYX2YxoClLcQAvD_BwE" rel="nofollow" target="_blank">experts</a> and <a href="https://theappraisersadvocate.com/services" rel="nofollow" target="_blank">consultants</a> when you need it. Love of and for family. The important stuff. And oh, yea. Pavement is really hard, so don’t fall on it. That’s another lesson. Take it from Tim Andersen, the Appraiser’s advocate. There are better ways to learn life’s lessons than falling off a bike. More fun, too. That’s something I’m going to do my best to avoid! So should you!

Long Story Short – Lessons I Learned Falling Off My Bike – TAA Podcast 033

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