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Comp check/Look up

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by meierd2000, Oct 2, 2007.

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  1. meierd2000

    meierd2000 New Member

    0
    Sep 6, 2007
    Professional Status:
    Licensed Appraiser
    State:
    Texas
    I've looked on here and can't seem to find anything about it. I had a new client email a look up and said they needed $400K or more, wanted me to get back to them with the value and then they will order the full appraisal. I remember reading in USPAP that look ups are illegal and especially meeting a pre-determined value. Another appraiser in my office found something in 2004 USPAP saying it's okay as long as you disclose this is an appraisal, keep it 5 years, etc with lots of assumptions and could change upon the actual appraisal of the subject. I have noticed that many appraisers will not do look ups saying they are illegal but will do an appraisal if the client wants to order one. So, what is true?? What should I do? Is there a certain way to do them that makes it legal?
     
  2. seattle98116

    seattle98116 Junior Member

    0
    Apr 19, 2007
    Professional Status:
    Certified General Appraiser
    State:
    Washington
    The "need $400k or more" is where you can get in trouble. There are many threads on here about "compliant comp checks" and there are people that will argue for them either way, or so I have read. There are USPAP instructors on here too that can elaborate more, but if you choose to do a "compliant comp check", it really is a desktop appraisal and you need to have the relevant certs and signatures included in your work file. Some people charge for this. If an order gets "upgraded" to a full appraisal then it is a new assignment.
    That is how I see it anyway. I am not advocating either side, just trying to spell it out. However, I am putting on my kevlar vest just in case...I think I may get blasted :)
    Justin
     
  3. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
  4. Michael Tipton

    Michael Tipton Senior Member

    0
    Sep 25, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Attached is a link to the 2006 version of USPAP.

    http://commerce.appraisalfoundation.org/html/2006%20USPAP/toc.htm

    I'd suggest reviewing the Ethics Rule-Management Section lines 266-273 and AO-19.
     
    Last edited: Oct 2, 2007
  5. Joyce Potts

    Joyce Potts Elite Member

    11
    Feb 6, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Where did I put the bullets?
     
  6. Suz-E

    Suz-E Senior Member

    0
    Apr 17, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
  7. meierd2000

    meierd2000 New Member

    0
    Sep 6, 2007
    Professional Status:
    Licensed Appraiser
    State:
    Texas
    well, i put in look up, comp check, maybe i did it wrong, i'm new to this forum! sorry! but thank you for all the info! i've signed up for a USPAP update class next week, my last USPAP class was in 2005!
     
  8. Joyce Potts

    Joyce Potts Elite Member

    11
    Feb 6, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Unfortunately, I doubt your USPAP class will adequately convey to you the differences. You're far better off to research the posts in this Forum, IMO.

    No personal offense to the 1,000 certified USPAP instructors out there.
     
  9. Tom Woolford

    Tom Woolford Elite Member

    32
    Nov 20, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida

    I'll send you some.
     
  10. Elliott

    Elliott Elite Member

    34
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oregon
    meier asked, Is there a certain way to do them that makes it legal?

    If you supplied them with raw data, lots of it, then ASB would probably
    say that's ok. If you were to work up a report (do you know anything
    about the subject?) and keep a standard workfile (essentially do an
    appraisal), then I doubt you could be faulted.

    But you do understand they don't give a rats a** about your comps,
    they want your assurance that you'll make the number they gave you
    work. That's a harder one to get around. Cause your work file would
    have the 'comp check' request in it. Some, maybe even your state
    board, could say you accepted an assignment with a pre-determined
    value. That would be wrong.
     
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