Appraisal Q&A: Your USPAP questions answered
In an effort to help promote the Uniform Standards of Professional Appraisal Practice and dispel common myths about the appraisal profession, Valuation Review has partnered with experts from The Appraisal Foundation to answer your on-the-job questions about appraisal best practices and other commonly misunderstood areas of the appraisal world, such as USPAP guidelines. Keep reading to see the Foundation’s latest USPAP guidance in our Appraisal Q&A.
How an emerging green trend might affect home values
Appraisers are increasingly being called upon to understand how energy-efficient features affect the values of the properties they are appraising.
But according to an article published July 15 by NPR, a growing trend in green features is on the cusp of further complicating the valuation of residential properties.
Solar panels are growing in popularity thanks to the money they can save homeowners on their utility bills, but the installation of these panels can be upwards of $20,000. In order to afford these modern money savers, more homeowners are turning to leasing programs to outfit their homes.
How to ensure everyday compliance in appraising
Sometimes it’s the little things that add up to make a big difference in the quality of an appraisal report.
That was the message that Joshua Walitt had for attendees to his “Everyday Compliance Items in Your Appraisal Business” presentation at Valuation Expo in Las Vegas. Walitt is a certified residential appraiser who works for the Colorado-based firm Brownlee Appraisal Services.
Everything from increasing fees, adding clients, ensuring compliance and boosting efficiency can be aided by doubling down on the basics.
The problem is that appraisers often forget or overlook some of the simple guidelines that steer the profession.
Pennsylvania plaintiffs allege appraiser incompetence after ‘mental breakdown’
A federal district judge in Pennsylvania recently tossed out a lawsuit in which Philadelphia homeowners argued an appraisal on their home following damage from a fire should be set aside because their appraiser “suffered some form of mental breakdown which rendered him incompetent to adequately advocate on their behalf.”
The case is John Mitchell, et al., v. Safeco Insurance Co. of Illinois.
The facts of the case date back to December 2012, when plaintiffs John Mitchell and Sarah Klunk suffered fire, smoke and related damage to their Philadelphia home. When their insurer, Safeco Insurance Co. of Illinois, did not pay damages, Mitchell and Klunk filed a lawsuit in the Court of Common Pleas of Philadelphia County, seeking claims for breach of contract and bad faith.
Valuation fraud is increasing, according to new report
Even in an age when compliance requirements and the scrutiny of appraisal reports are at an all-time high, valuation fraud is escalating.
Interthinx, a subsidiary of First American Financial Corp. and a provider of risk mitigation solutions for the financial services industry, has released its Mortgage Fraud Risk Report for the first quarter of 2014. According to the report, property valuation fraud has increased notably throughout the country both over the last year and since the fourth quarter of 2013, even as other types of fraud have dropped.
More data, more specialization, more money: How the role of appraisers is changing forever
Valuation leaders across the industry descended upon Las Vegas for the Valuation Expo June 23-25 to share insights on the current state of the appraisal profession and the direction that it is heading. Over the course of the three-day event, many topics were touched upon, but if there was a prevailing theme, it might be this: The days of using three comps to come to a value conclusion are over, and the era of Big Data has begun.
Big Data, defined simply, is a collection of complex data sets. With more analytics available by the day in our computer-run world, knowing how to use Big Data to come to appropriate appraisal values is going to redefine the role of appraisers in the coming years.