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USPAP Compliant Reconciliation

Discussion in 'Appraisal Review' started by Metropolis, Nov 23, 2010.

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  1. zdfenton

    zdfenton Junior Member

    2
    Nov 13, 2008
    Professional Status:
    Certified General Appraiser
    State:
    Wisconsin
    I don't think they know what they're asking for. Standards Rule 1-6 (A) requires a reconciliation of the quality and quantity of data within approaches, but if you didn't perform an income approach you can hardly reconcile within that approach.

    You may want to bring that to their attention and see what they're really asking.

    By stating the approach was not applicable to me you've done your job from a USPAP perspective
     
  2. rowdydog

    rowdydog Junior Member

    0
    Dec 11, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    remember this, you might be dealing with "wanta be appraiser",who has no idea of what he is asking for.
     
  3. JRS at OBX

    JRS at OBX Elite Member

    3
    Jun 13, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Kinda like the Doc claiming to be USPAP certified.
     
  4. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    246
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    Each approach should within its own section "Reconcile" the value and its reasoning. Then the final reconciliation should devote itself to arguing which approach is Applicable, applied, weighted, imho.

    I don't think you need to rehash each approach in the final reconciliation.

    as for reconciling the Income Approach. It is easy to dismiss it, but in many subdivisions now, I am seeing 30 - 50% renters.....sooo...it is applicable even if, like the cost approach it is not necessary to arrive at a market value conclusion. So maybe he is complaining that you didn't do it... otherwise, there is nothing more to reconcile that what you have done.
     
  5. Laughing Heir

    Laughing Heir Senior Member

    1
    Oct 16, 2007
    Professional Status:
    Certified General Appraiser
    State:
    Pennsylvania
    My bold.

    That's how I see things too. I found it much easier to write a convincing SCA summary (and reconciliation) after I learned to use the active voice.

    This is one I might use in my final reconciliation for a rural property:

    I omitted the income approach from the development of this appraisal; homebuyers in this market area do not typically purchase single-family dwellings for their ability to generate income yada yada yada.

    It's the same thing for whatever approach I did / did not employ throughout the process. I feel that the first person, active voice approach engages the reader and makes them want to read your appraisal.

    YMMV

    Mike
     
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