Voluntary Appraiser Disciplinary Action Matrix Based on 2014-15 edition of USPAP

A very interesting document provided by the Appraisal Foundation to state boards. Not mandatory, just information for them. State boards vary dramatically in how they handle discipline. Fortunately, I am in California, which has never had a state board (Governor of CA at that time did not want to increase any expenses, including advisory boards). Investigators are all state employees.

3 examples:

An appraiser states in his certification on an appraisal that he inspected the interior and exterior of the subject property, when in fact he only drove by the property.
As a result, he stated that the subject property was in average condition when it was actually in poor condition and essentially uninhabitable. He did not use any extraordinary assumptions or hypothetical conditions in the assignment. He knew that the lender required an interior inspection.

An appraiser accepted an appraisal assignment in an area where he is not geographically competent, failed to notify the client that he was not geographically competent and failed to take the necessary steps to become competent. As a result, he produced an appraisal that was not supported by market data.

In the sales comparison approach, an appraiser simply adds the adjusted value of the three comparable sales used and divides by three for an indicated value, even though some sales were far better indicators of value than others.

Note: These are the simple examples. There are more commercial appraisal examples and more complicated residential examples.

Click here to download from the Oklahoma state regulator web site.

My comment: Well worth reading. What does your state board do?

Thanks to Long Time Reader and author Doug Smith in Montana for this great link!!

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If you use XP today, what are your plans regarding upgrading your operating system and internet browser in 2014?

Poll Results from www.appraisalport.com
Go there to participate  the current poll!!
11/11/13

If you use XP today, what are your plans regarding upgrading your operating system and internet browser in 2014?

– I plan to upgrade XP to Windows 7 or 8 and use newer included IE browser, Chrome or Firefox. 573 votes 14%
– I plan to move to another platform such as Apple along with a Safari, Firefox or Chrome browser. 78 votes 1%
– I don’t plan to upgrade XP, but will move to a different browser like Chrome or Firefox. 284 votes 7%
– I’m not going to do anything and hope for the best. 601 votes 7%
– I have already upgraded my system(s). 2,220 votes 56%
– I am not sure what Operating System I use. 201 votes 5%

Total Votes: 3,957

My comment: wow. I am definitely behind!! Still using XP (too cheap to purchase new software and go through the extreme hassle of moving everything to a new computer;> Stuff going back to the early 90s, buying and installing new software, etc. etc. ;> But, I do plan to get a new computer and upgrade to Windows 8 in 2014… sometime. I have been using a macbook pro for 4 years for music and video. No hassles at all. I have a dual boot to PC and have had very few problems with it either, even though I run most of my business software on it. Few crashes and hassles on the pc side. In direct contrast, I spend about 2-3 hours per week, on average, hassling with my two desktop pcs. I guess finally, after 30 years, windows is coming close to the mac in reliability and east of use, so they say. My got first PC in 1980. Nothing but hassles since then.

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What appraisal designation(s) do you currently hold?

Poll results from www.appraisalport.com
Go there to participate  the current poll!!
7/29/13

What designation(s) do you currently hold?
MAI 49 votes .8%
SRA 491 votes 8%
IFA 82 votes 1.4%
ASA 24 votes .04%
Other 227 votes 4%
Two or more of the above. 92 votes 1.6%
AI associate member only 293 votes 5%
None, but state certified residential or general. 4087 votes 70%
None, but state licensed. 417 votes 7%
None, working as a trainee at this time. 50 votes 1.2%

Total Votes: 5,812

My comment: Once again, I am in the minority with an MAI and an SRA. Probably because I am an “old timer” who started before licensing and also because I have an MAI, which is very valuable for commercial appraising. No extra fee for having both designations.

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