Five USPAP Myths Dispelled in 2024 USPAP
By Daniel A. Bradley, SRA, CDEI, McKissock Learning
On May 5, 2023, the Appraisal Standards Board (ASB) voted to adopt changes to the Uniform Standards of Professional Appraisal Practice (USPAP), which will become effective January 1, 2024. These represent the first changes to USPAP in four years. Many of the changes will not have a significant impact on the way appraisers practice but are nevertheless important for public trust.
Appraisers and the public have traditionally held several misconceptions about USPAP, and these changes should help to dispel some of those myths. There are five myths and misconceptions that are addressed in the changes to the 2024 USPAP.
- Myth 1: USPAP Allows Discrimination as Long as the Appraiser’s Conclusions are Supported
- Myth 2: The Removal of the Definition of Misleading from USPAP Reduces Liability for Appraisers
- Myth 3: An Inspection of the Subject Property by a Third Party is the Equivalent of a Personal Inspection by an Appraiser
- Myth 4: Appraisers are not Required to Analyze Prior Non-Sale Transfers of the Subject Property
- Myth 5: The USPAP Update Course Cycle is the Same as the USPAP Publication Cycle
To read more, Click Here
My comments: It’s worth reading, especially if you do residential lender appraisals. Lender issues are a significant factor in USPAP and Myths 1 to 4. I suppose it is because most appraisals are done (now) for residential lending purposes. Many thanks to Dan Bradley for writing about the 2024 USPAP changes.
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NOTE: Please scroll down to read the other topics in this long blog post on New CA bias classes, 2024 New Years resolutions, 2024 goals, unusual homes, mortgage origination stats, etc.
Modern Montauk NY ‘Tree House’ Offers Sweeping Oceanfront Views for $7.5M
Excerpts: 4 Bedrooms, 4.5 baths, 4,000 sq.ft., 4.01 Acres
Built in 1978, the four-bedroom, waterfront oasis is set on a little more than an acre, surrounded by trees—for unbeatable privacy. It’s known as the “Modern Montauk Tree House,” the listing notes. It also has a private rooftop deck with sunset views
“It’s in an area of Hither Woods that is a very hilly section of Montauk near the ocean,” says listing agent Rylan Jacka, “It’s unusual to see the ocean from most places, unless you are directly on the ocean. This house sits on a high point and has great ocean views. It’s at the end of a cul-de-sac as well, so it’s a very quiet spot.”
To read more, Click Here
To see 31 photos in the listing, Click Here
Top Ten Reasons Why It Is Great to be an Appraiser
10. Dazzle your friends with your knowledge of external obsolescence.
9. The wonderful world of rats, bats, and spiders.
8. Be a part of the profession blamed for the collapse of the savings and loan industry.
7. See places in people’s houses that usually require a search warrant to access.
6. Arouse the suspicion of an entire neighborhood when inspecting comparable sales.
5. Chance to really irritate annoying real estate salespeople.
4. Walk around holding a clipboard just like “Skip” down at the Jiffy Lube.
3. Spend hours writing volumes of supporting documentation to justify the market value of a property you already decided on when you pulled into the driveway.
2. See that some people really do hang those black velveteen pictures of Elvis on their living room walls.
1. Be one of a handful of people who know that USPAP is not a medical term.
Many thanks to reader Joe Ibach, MAI, for this great list! He doesn’t know the source… seems like it is one of those email/send/resends floating around on the Internet!
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In the January 1, 2024 issue of Appraisal Today
New Year’s Resolutions for Appraisers. Set Goals for 2024 and Plan How You Will Accomplish Them
Excerpts: Of course, goals can be done at any time, but many of us think about New Year’s resolutions so this is a good time to work on them. In this article, I don’t focus on losing weight, which is one of the hardest goals to achieve. This requires eating habits acquired over many years. Instead I focus on very specific goals, mostly business related, that you can achieve.
Write down specific goals and see how well you do during the year. This is very important. Dates are good to set also. You can revise your goals when you need to. Start small. Pick two goals. For example, take one short CE class or webinar to update your appraisal skills in March.
Below are examples. Setting specific dates is very important. You know what is important to you.
– Set up a budget for 2024 by the end of February.
– Bring your lunch one day of the week when working in the field. (Saves time and money, plus is healthier.)
– Update your website. Select a date. Or setup a website.
– Set up your Google business profile.
– Start working on your income taxes in January.
– Work on getting a more positive attitude toward your clients, fees, etc. Pick one client to start with.
– Attend a meeting of a local appraisal group. Set the date(s).
– Attend a local, regional, or national appraisal conference. Sign up and pay ahead of time so you will be more likely to attend.
My New Year’s Resolution: Don’t forget personal Resolutions. Play More Pickleball! Two months ago a new facility was available in my small city. Open from 6am to 10pm. 8 indoor courts and 7 outdoor ;> For 8 years, we only had 4 public courts with 8am to dark use. Had to wait a long time to play, like in many other cities.
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Appraisers Share Their Top Professional Goals for 2024
By: McKissock December 19, 2023
With 2024 just around the corner, we wanted to find out what goals real estate appraisers hope to achieve and where they plan to focus their efforts in the coming year. As part of our monthly survey series, we asked our appraisal community, “What is your top professional goal for 2024?” Many are planning to either get licensed/certified or work on growing their business.
Get licensed or certified (24%)
Grow my business (23%)
“As the lending side of the commercial appraisal business has declined, we are actively networking to increase our private party work for CPAs, lawyers, and estate planning professionals.”
Improve my work-life balance (11%)
“Work less and play more. I was able to take some good steps towards this goal this past year by eliminating my furthest territory. Prior to that, I found myself driving there on the weekends mostly.”
Streamline my appraisal process (10%)
Plus 3 more
To read more, Click Here
My comments: Interesting stats! I was surprised that “get licensed or certified” was number 1.
Elimination of Bias and Developing Cultural Competency – with Real World Relevance
Required for California Appraisers
Fulfills BREA’s new appraiser CE requirement for elimination of bias and cultural competency.
Instructor: Peter Christensen
3 CE Hours Live Virtual CE Class on Zoom
BREA Approval No. 2310722004
Price: $70 Use Coupon Code “ann” for $15 off
January 19, 2024, 10am to 1pm Pacific
For more information and To purchase the class Click Here
You will get up-to-date information from attorney Peter Christensen about what is really happening in the courts and in administrative bodies relating to alleged discrimination in appraising from an attorney who is presently handling cases and investigations.
You’ll learn key ways to work on eliminating bias and reduce your legal risk. You’ll also learn why “cultural competency” knowledge and skills are truly important for appraisers – you’ll see how a lack of cultural competency has led appraisers into legal quagmires.
My comments: I have known Peter for a long time and have heard him speak many times and taken his classes. Take this class from a practical “insider” who tells you what and why of these topics.
Like most appraisers, I don’t like taking classes on these topics. But the speaker can tell us about the legal side, such as “bad” allegedly biased appraisers in the news. Legal topics are very popular with appraisers. LIA’s “ads” on the top of each email newsletters often have the most popular topics!
I found out about this new requirement last month During a required CE class. :<
Iconic Malibu CA Masterpiece – Airbnb $1,950 per night
Excerpts: 3 bedrooms, 2.5 baths
An architectural masterpiece designed by World renowned architect Harry Gesner and a wonderful fusion of modern architectural style with Gothic castle.
Perched on a quiet hilltop overlooking the Pacific ocean, the home is entered through a unique arched doorway. A sweeping staircase leads down to the great room with its 30ft high vaulted arched ceilings, vast open fireplace and stone mosaic floor. All around are distinctive hand crafted elements and wonderfully eclectic furnishings.
There are sweeping ocean views from every room including the three bedrooms. The house is surrounded by lush gardens, several vast decks and patio areas and a pool with a spa. A 1957 Airstream trailer sits among the trees.
To read more and see photos, Click Here
My comments: Malibu, California, is very upscale, located close to the beach with celebrity homes. Maybe you’ll see a movie star on the beach ;>
HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, Click Here.
Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.
My comments: Rates are going up and down. Many appraisers are not busy. Some are busy, usually with non-lender appraisals.
Mortgage applications decreased 9.4 percent from two weeks earlier
WASHINGTON, D.C. (January 3, 2024) — Mortgage applications decreased 9.4 percent from two weeks earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 29, 2023. The results include adjustments to account for the holidays.
The Market Composite Index, a measure of mortgage loan application volume, decreased 9.4 percent on a seasonally adjusted basis from two weeks earlier. On an unadjusted basis, the Index decreased 38 percent compared with two weeks ago. The holiday adjusted Refinance Index decreased 18 percent from two weeks ago and the unadjusted Refinance Index decreased 43 percent from two weeks ago; both measures were 15 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 5 percent compared with two weeks ago. The unadjusted Purchase Index decreased 34 percent compared with two weeks ago and was 12 percent lower than the same week one year ago.
“Markets continued to digest the impact of slowing inflation and potential rate cuts from the Federal Reserve, helping mortgage rates to stay at levels close to the lowest since mid-2023. The 30-year fixed mortgage rate edged higher last week and ended 2023 at 6.76 percent, over a percentage point lower than its recent peak of 7.9 percent in October 2023,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The recent decline in rates has given the housing market some cause for optimism going into 2024, but purchase applications have not yet picked up in response, with the overall level of purchase activity 12 percent lower than a year ago. Refinance applications were still at very low levels, but were 15 percent higher than a year ago.”
Added Kan, “The housing market has been hampered by a limited supply of homes for sale, but the recent strength in new residential construction will continue to help ease inventory shortages in the months (to) come.”
The refinance share of mortgage activity decreased to 36.3 percent of total applications from 39.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.0 percent of total applications.
The FHA share of total applications decreased to 14.5 percent from 15.0 percent the week prior. The VA share of total applications decreased to 14.6 percent from 17.3 percent the week prior. The USDA share of total applications increased to 0.5 percent from 0.4 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.76 percent from 6.71 percent, with points increasing to 0.61 from 0.55 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $726,200) increased to 6.86 percent from 6.85 percent, with points increasing to 0.41 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.51 percent from 6.50 percent, with points increasing to 0.86 from 0.73 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.26 percent from 6.41 percent, with points increasing to 0.73 from 0.50 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 5.71 percent from 6.26 percent, with points decreasing to 0.59 from 0.59 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, and thrifts. Base period and value for all indexes is March 16, 1990=100.
Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
1826 Clement Ave. Suite 203 Alameda, CA 94501