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Verbage

Discussion in 'Appraisal Education' started by Susie Seibert, Jun 22, 2005.

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  1. Susie Seibert

    Susie Seibert Junior Member

    0
    Mar 22, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Michigan
    Hi you guys...

    I was wondering if there is an online site or a publication that offers examples of verbage we can use to address intended use and users, scope of work, departure, etc.

    Any help?

    Many thanks as usual.
     
  2. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    135
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    Susie
    You are on your own for the time being. This is the question. What is going to constitute bullet proof scope of work verbiage? I really don't know but I can assure you that the Std. board will have to address the issue and they will thoroughly confuse the appraisal community in the process.
     
  3. leelansford

    leelansford Elite Member

    24
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    "Scope of Work: the amount and type of information researched and the analysis applied in an assignment. Scope of work includes, but is not limited to, the following:
    --the degree to which the property is inspected and identified;
    --the extent of research into physical or economic factors that could affect the property;
    --the extent of data research; and
    --the type and extent of analysis applied to arrive at opinions or conclusions."

    That, per the 2005 definition of "Scope of Work".

    Think about it. It is pretty much what you did and how you did it. Reflect upon that, and put it on paper.
     
  4. George Hatch

    George Hatch Elite Member

    48
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    California
    I think of scope of work disclosures as consisting of more than just what the development process is, but also the elements that lead to that decision and why that decision is reasonable for that assignment.

    Think of all the elements that go into a scope of work decision:

    Who is the Client and intended users and what are their needs
    What is the intended use
    What type of workproduct is being developed
    What definition of value is being used
    What's the effective date of the work
    What type of property is involved
    What are the attributes of that property that are relevant to the work
    What assignment conditions are involved that affect the work

    These are the elements you use to justify the extent of your scope of work.

    Then you get to the process itself, the inspection, the research and confirmation of market data, all of which leads to the analyses, opinions and conclusions.

    In my mind a good disclosure is going to address all of these issues in an appraisal report so that the context of the decision as well as the decision itself are adequately communicated to the reader. I don't think it can be done well in a single boilerplated paragraph (Fannie's clumsy attempts fail miserably, IMO). for that matter I don't think we should get too wrapped up in the idea of developing a fire-and-forget disclosure. Scope of Work decisions should be given at least a few moments of consideration in every assignment because one size does not even fit most, let alone all.

    FTR, in anticipation of the looming replacement of the Departure Rule with the Scope of Work Rule, I have swapped out the "USPAP Addendum" page in my form reports (as provided by my software vendor) and have substituted a 1-page narrative-style addendum that covers all the above elements and then some. It's not fire-and-forget, but then again I don't want it to be. When the next edition of USPAP comes out, my conversion away from the Departure Rule to the Scope of Work Rule might take me all of about 5 minutes to complete. Just a little editing is all.
     
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