NEVADA REAL ESTATE DIVISION
WINTER 2020
APPRAISAL
REPORT
http://red.nv.gov/
A Newsletter for Nevada Appraisers
INTRODUCING
COMMISSION
PRESIDENT KENNETH
CRONIN
FROM THE
STANDARD 3
REVIEWER'S DESK
DISCIPLINARY
CASES FROM
THE APPRAISAL
ADVISORY REVIEW
COMMITTEE
APPRAISAL
STATISTICS
6
D
id you know that you can attend an Appraisal
Commission Meeting and receive up to six
hours of continuing education credit per
renewal cycle at no cost?
In order to receive credit, you may not be
a participant in or otherwise affiliated with a
disciplinary hearing at the hearing which you are
attending.
Simply sign in, stay for a minimum of two hours,
and sign out.
Upcoming meeting dates are available on the
Division's website. Check the website three days
prior to the meeting date to confirm the time and
location. Please note meetings do not always last
three days, so it is always best to plan on attending
on the first day. Meetings and dates are subject to
change.
EDUCATION CORNER
FREE CONTINUING EDUCATION CREDIT
AT COMMISSION MEETINGS
A
s a fth-generation
native Nevadan,
my roots in this
great state run
deep. My family
were some of the rst settlers to
the region, rst making a living
via cattle and later in the insurance
and banking industries. My great
grandfather’s residence still stands
in downtown Reno and is on the
National Registry of Historic
Places, having entertained the
likes of Nevada Governor Emmet
D. Boyle and U.S. Senator Tasker
Oddie. I wholeheartedly enjoy
living and working in Nevada, and
it has been a true honor to establish
a career here in the rewarding and
progressive appraisal profession.
I have been an appraiser for the
last 15 years, during which time
I have been the sole proprietor
of Appraisal Group of Northern
Nevada. I spend much of my time
working in the Lake Tahoe basin
and surrounding areas. I enjoy
the diversity of the Lake Tahoe
market, with both luxury class,
lakefront properties and one-of-a-
kind, historic cabins. Appraising
such complex and remarkable
properties is what I enjoy most, as
it requires the pursuit of continual
knowledge and erudition—this
process has undoubtedly made me
a better appraiser. Appraising such
unique properties has allowed me
to network with other appraisers
whom I deeply admire and respect,
and although it is wonderful being
able to do this exciting work in such
a beautiful area, I have found over
the course of my career that it’s
really the people you meet along
the way who make the appraisal
profession so special.
While I am certainly motivated
and passionate about my work as an
appraiser, I am equally driven and
inspired in my family and personal
endeavors. There is nothing that I
enjoy more than spending time in
the outdoors with my wife of over
16 years and our two children, ages
12 and nine. Together, the two of
them keep us busier than we ever
imagined.
When I’m not working on an
appraisal, I can be found skiing and
driving my children to and from
their "full time" ski racing programs
at Squaw Valley Ski Resort in the
winter. In the spring, I also go by
the name “Coach” and savor my
time on the baseball eld coaching
my sons’ teams.
When not on land, I can be
found shing on Lake Tahoe with
my family or making an annual
pilgrimage to Vancouver Island
for salmon and halibut. I am an
avid outdoorsman always looking
forward to time spent hunting big
game or soaking in the state’s beauty
in the marsh.
Staying active—not only in my
career, but in life—is very important
to me. I’m a rm believer that we
should never stop growing in any
facet of our lives—personally or
professionally. I am humbled by this
appointment and am greatly looking
forward to serving as President of
the Commission.
Introducing Commission
President Kenneth Cronin
FROM THE
STANDARD 3
REVIEWER'S
DESK
LACK OF DISCUSSION AND ANALYSIS OF HIGHEST AND BEST USE
THE CURE
Highest and best use analysis, depending on the assignment and property, may be
quite complex. But whether simple or complex, the important takeaway is that the
appraiser must "summarize" the support and rationale for his or her highest and
best use opinion, when writing an Appraisal Report.
Checking the "Yes" box on a standard lending appraisal form is not adequate,
regardless of what other appraisers may do or how you were trained.
For simple properties and simple assignments, much of the summary of the
highest and best use may be very similar to the summary in other assignments.
For example, you might not need a long-drawn-out analysis and summary
regarding the highest and best use of a property in a subdivision. However, a more
in-depth analysis and write-up might be necessary for a more unique property
or for an assignment that is otherwise complex. At a minimum, summarize
the results of your consideration of the four tests: legally permissible, physically
possible, financially feasible, and most productive.
STANDARD RULE 1-3 (B)
"When necessary for credible assignment results in developing a market
value opinion, an appraiser must develop an opinion of highest and best
use of the real estate. Comment: An appraiser must analyze the relevant
legal, physical, and economic factors to the extent necessary to support
the appraiser’s highest and best use conclusion(s)."
STANDARD RULE 2-2 (A)
"The content of an Appraisal Report must… when an opinion of highest
and best use was developed by the appraiser, summarize h support and
rationale for that opinion."
ONE OF THE MOST
COMMON ERRORS
FOUND IN STANDARD 3
REVIEWS FOR THE STATE
OF NEVADA.
DISCIPLINE CASES FROM THE APPRAISAL
ADVISORY REVIEW COMMITTEE
Note: The following is a summary of recent disciplinary actions imposed by the Nevada
Commission of Appraisers of Real Estate. This is only a summary of the written decisions of the
Commission. For brevity, some of the facts and conclusions may have been edited out. Because
these are summaries only, and because each case is unique, and fact specific, these summaries
should not be relied on as precedent as to how similar cases may be handled
AS OF OCTOBER 2019, THERE ARE 6 CASES PENDING AARC FOR 2020.
!
CERTIFIED RESIDENTIAL
CERTIFIED RESIDENTIAL
VIOLATIONS
VIOLATIONS
DISCIPLINE
DISCIPLINE
A complaint filed with the Division on April 2, 2018 questions the comparable sales utilized within a
report and notes that all comparable sales were valued greater than the subject’s final value opinion.
The complaint itemizes and monetizes the upgrades of the subject home, questioning if the upgrades
were taken into consideration by the respondent. The complaint alleges that the respondent appeared to
maintain a racial bias. Furthermore, the complaint alleges that the report was not completed accurately,
and the report impairs the owner’s ability to refinance the subject in order to improve upon its value in the
future.
A review of another case prompted a closer look at this appraisal. A complaint was filed against another
appraiser on June 30, 2017 regarding the same subject property. A review of the appraisal in the complaint,
filed on June 20, 2017, warranted a closer look by the Division at the appraisal, done by this respondent.
Respondent did the original appraisal on the subject property. The complaint was filed against the other
appraiser who did a secondary appraisal, on the same subject property.
Record Keeping Rule
Standard Rule 1-1 (a)
Standard Rule 1-5 (b)
Standard Rule 2-2 (a) (viii)
Standard Rule 2-2 (a) (x)
Record Keeping Rule
Standard Rule 1-1 (a)
Standard Rule 2-2 (a) (viii)
Standard Rule 2-2 (a) (x)
Sales Adjustments: 15 HRS
Work File: 5 HRS
Site Valuation & Cost Approach: 14 HRS
Report Writing: 14 HRS
Sales Adjustments: 15 HRS
Work File: 5 HRS
Site Valuation & Cost Approach: 14 HRS
Report Writing: 14 HRS
First of two complaints against this respondent.
Second of two complaints against this respondent.
CERTIFIED RESIDENTIAL
VIOLATIONS DISCIPLINE
A Statement of Fact was received on March 28, 2018. The complaint states that the respondent completed
a previous appraisal of the subject in 2016 and that the reports from 2016 and 2018 were the same with no
mention of subsequent upgrades. The 2018 report includes comments from 2016 regarding ceiling water
damage in the kitchen and dining area which was repaired prior to 2018 appraisal.
Record Keeping Rule,
Standard Rule: 2-1(b),
Standard Rule: 2-2(a)(viii)
Standard Rule 2-2 (a) (x)
Sales Adjustments: 7 HRS
Cost Approach: 14 HRS
Report Writing: 14 HRS
CERTIFIED RESIDENTIAL
VIOLATIONS
VIOLATIONS
DISCIPLINE
DISCIPLINE
The 1004MC Market Conditions Addendum’s limited sampling size contributed to a statistical error,
concluding the median comparable sales prices are stable. Therefore, the appraisal conclusion that property
values are stable within the defined market area are not supported.
The value opinion based upon the Sales Comparison Approach is not credible, given that no adjustments
for contract dates were applied to the Sales Comparison Approach comparable sales.
Adjustments were applied to the comparable sales for site area, bathroom count, room count, covered
patio, and upgrades. In addition, the comparable listings were adjusted for contract date and superior
upgrades. The work file contains no evidence of analysis or computations regarding the adjustments.
The client required the appraisal report include the Cost Approach. Although the appraisal reconciliation
analysis indicated the Cost Approach was given no consideration in the final opinion of value, the Cost
Approach was not completed in a credible manner.
The appraisal reported a previous sale of the subject, but no analysis of the sale was noted in the report.
Record Keeping Rule
Standard Rule 1-1 (a)
Standard Rule 1-5 (b)
Standard Rule 2-1 (a)
Record Keeping Rule,
Standard Rule 1-1 (a)
Standard Rule 1-1 (b)
Standard Rule 1-1 (c)
Standard Rule 1-5 (b)
Work File: 5 HRS (online)
Site Valuation & Cost Approach: 14 HRS
(Classroom)
Residential Report Writing & Case
Analysis: 14 HRS (Classroom)
Work File: 5 HRS (online)
Site Valuation & Cost Approach: 14 HRS
(Classroom)
Residential Report Writing & Case
Analysis: 14 HRS (Classroom)
CERTIFIED RESIDENTIAL
The complaint disagrees with the final opinion of value, stating, “There is just no way we can sell our home
for 174k when the same house in our complex just sold for 193k and we have an all updated interior.”
Standard Rule 2-1 (a)
Standard Rule 2-2 (a) (viii)
Standard Rule 2-2 (a) (x)
DISCIPLINE CASES FROM THE APPRAISAL ADVISORY REVIEW COMMITTEE
APPRAISAL STATISTICS AS OF JANUARY 2020
COMMISSION OF APPRAISERS OF REAL ESTATEREAL ESTATE DIVISION
SHARATH CHANDRA
Administrator
PERRY FAIGIN
Deputy Administrator
JAYE LINDSAY
Appraisal Program Manager
VACANT
Compliance/Audit Investigator II
KENNETH CRONIN
President
Washoe County
LARRY MICHAEL GANDY, JR.
Vice President
Clark County
DAVID STEFFAN
Secretary
Washoe County
VACANT
Commissioner
VACANT
Commissioner
APPRAISER TYPE COUNT
Certified General Appraisers
424
Certified Residential Appraisers
454
Residential Appraisers
72
Appraiser Interns
91
Appraisal Management Companies
153
Appraisal Management Companies (Individual)
336
Inters Approved since July 1, 2019
0
This is the Appraisal Section’s second newsletter. It is the intent to get a newsletter
out at least quarterly. If you have suggestions or recommendation for the
newsletter, please feel free to contact Jaye Lindsay, Appraisal Program Manager at
jvlindsay@red.nv.gov.
UPDATES TO THE NATIONAL REGISTRY
A Couple More Things . . .
SERVE ON THE ADVISORY REVIEW COMMITTEE
To have information such as addresses and phone numbers updated on the
National Registry, contact the Appraisal Program Manager at jvlindsay@
red.nv.gov with the information that needs to be updated or corrected.
The Appraisal Advisory Review Committee (AARC) is comprised of
volunteer Appraisers who gather to hear investigative cases in an informal
setting. If you're interested in serving on the AARC, complete the application
NEW ONLINE:
• New Continuing
Education (CE)
Courses
• Renewed CE
Courses
• Additional
Resources
