| Q: What are the Uniform Standards of Professional Appraisal Practice (USPAP)? A: USPAP is the Uniform Standards of Professional Appraisal Practice, the code of ethics written by the Appraisal Foundation, which Congress authorized as the source of appraisal standards and appraiser qualifications. The purpose of the Uniform Standards of Professional Appraisal Practice (USPAP) is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers. It is essential that appraisers develop and communicate their analyses, opinions, and conclusions to intended users of their services in a manner that is meaningful and not misleading. Q: What is an Automated Valuation Model (AVM)? A: AVM's are computerized valuations, "black box" technology that analyzes data using an automated process. For example, AVM's may use regression, adaptive estimation, neural network, expert reasoning, and artificial intelligence programs. AVM's are NOT appraisals. AVM output for the most part is limited in accuracy and confidence. In our experience we have found AVM's to be inaccurate as they utilize outdated market information and are incapable of discerning between the most important factors such as interior condition of the subject and specific locational issues such as locational obsolescence, views and site characteristics. Most importantly, they lack the judgment that comes from an experienced, professional certified appraiser. There are some vendors falsely advertising their AVM's on websites as appraisals. The reader is cautioned that the old adage applies: you get what you pay for. Q: What is a Comparative Market Analysis or CMA? A: A CMA is typically performed by a real estate sales agent or broker to establish a listing price for a property a client wishes to sell. CMAs are currently being used as marketing tools, where prospective customers inquire about the value of their homes based on a "free appraisal" and are contacted by a number of real estate agents. The CMA is NOT an appraisal. |
| Frequently Asked Questions Claude Simos Appraisals |
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