USPAP and Non-Traditional Appraisals – TAA Podcast 093

Is it time to expand and diversity your appraisal business?  USPAP and non-traditional appraisals may be just the proper answer you’ve been looking for!  In this podcast we do not discuss hybrid or desktop appraisals.  We’ve already done that.  Instead, in this podcast we consider expanding and diversifying your business by accepting assignments from other than traditional lenders, evil AMCs and the GSEs.  This is because there is another universe of appraisal out there.  It has the generic term “private work”.  But it means appraisal work for other than refinancing an existing mortgage or applying for a first mortgage loan to purchase a house.  And what’s wonderful is that we can do these private appraisals, too.

USPAP and non-traditional appraisals come into play in times when mortgage work slows down.  And given the increase in US interest rates since May of 2022, mortgage and re-finance work have slowed way down and may slow even more.  What’s more, foreclosure and pre-foreclosure appraisals may increase as homeowners find themselves underwater if they paid too much for their house during the boom.  And what about pre-listing appraisals.  Our broker friends want to list houses at prices that will earn them commissions.  An overpriced house does not fit that bill.  Potentially, tax appeals are a source of revenue for appraisers.  How so?

USPAP and non-traditional appraisals will be an important feature when real estate values start to fall.  Property owners will want a competent, independent, impartial, and objective real estate appraisal when it comes time to appeal their ad valorem tax assessments.  Who better than an appraiser to carry this out?  Brokers, who live on commissions, will have their impartiality open to suspicion in such appraisals.  That’s what our mantra should be from now forward!  “Appraisers do it Right!”  Or, at least, we should!