Summary, self-contained

[PropertyEconomics]

The only thing in the work file of a self-contained appraisal report .. is a copy of the appraisal report. That should give you an idea about what level of detail and inclusion of documents, explanation, and support is in a self-contained appraisal report.

Its not literal but its very close.

 

[Mr Rex]

Tank you, tank you verry much.:icon_mrgreen:

 

[Michigan CG]

The only thing in the work file of a self-contained appraisal report .. is a copy of the appraisal report. That should give you an idea about what level of detail and inclusion of documents, explanation, and support is in a self-contained appraisal report.

Its not literal but its very close.

Very good description. I see a lot of complaining about this or that client is making me write a self-contained report. I would like to send those folks an MAI demo report which is the only time most appraisers ever really write a self-contained report.

 

[Terrel L. Shields]

I've seen some appraisers take the "kitchen sink" approach to self contained reports. This means they included everything but the kitchen sink. I saw one where the appraiser included not just a full page write up of a lease comp, but the listing flyer (5-6 pages), and copy of the lease that he obtained (10-15 pages). The report also contained basically the entire zoning code (80-90 pages). The final report was over 700 pages long

I would like to send those folks an MAI demo report which is the only time most appraisers ever really write a self-contained report.

The level of detail needed in a report should relate to the CLIENT and the APPRAISERS needs not a contrived definition which USPAP created in the mid-90s along with Limited and Complete so as to completely confuse everyone.

The level of description should relate to the minimum that the appraiser is comfortable with and the intended users can understand. A 12 page description of a building that the owner/client is fully aware of is pointless. Some clients want the comps to include not only the book and page number but a copy of the deed and/or at a minimum the complete name of the grantors-grantees..how quaint...and pointless usually.

All three terms should be abolished and the appraiser should have a choice to provide a form report or a narrative and each to be appropriately fleshed out according to the needs of the client and the appraisers own judgment of what needs to go in it to make it understandable.

Abolish the 3 levels.

 

[PropertyEconomics]

The level of detail needed in a report should relate to the CLIENT and the APPRAISERS needs not a contrived definition which USPAP created in the mid-90s along with Limited and Complete so as to completely confuse everyone.

The level of description should relate to the minimum that the appraiser is comfortable with and the intended users can understand. A 12 page description of a building that the owner/client is fully aware of is pointless. Some clients want the comps to include not only the book and page number but a copy of the deed and/or at a minimum the complete name of the grantors-grantees..how quaint...and pointless usually.

All three terms should be abolished and the appraiser should have a choice to provide a form report or a narrative and each to be appropriately fleshed out according to the needs of the client and the appraisers own judgment of what needs to go in it to make it understandable.

Abolish the 3 levels.

I you do much review work you know this will be a complete and utter disaster. Many if not most appraisers must have a recipe or they simply cannot bake .. and left to their own devise ... will just simply lead the market to conclude even more, appraisals are not worth anything in the process.

 

[Terrel L. Shields]

You can lead a horticulture but you can't make her think - Dorothy Kilgallen

It is hard to get appraisers out of the form mentality rut and to actually comprehend the zen of appraising.

When I was a senior engineer (more like a sanitary engineer than a real engineer) with a service company in the oil biz I was tapped as the advanced trainer. They hated me as a basics trainer but the boss inferred that I took trainees to the next level to make them understand WHY we were doing this job, not just HOW to do this job.

I feel like a lot of appraisers learn HOW to do the job but fail to understand the very reason and nuances of WHY it is done...

 

[Mike Garrett RAA]

There is a time and a place for each reporting option. There is absolutely nothing wrong with using a form but it should contain sufficient information for the intended user to understand the appraiser's methodology and conclusions. Since all major players; fannie, freddie, FHA, and VA all understand this type of report, switching to a self-contained appraisal report would result in total confusion.

The major problem we have now is that we, as appraisers, prefer to fight the system. Should page one say..."neighborhood" or "marketing area"? Should the information on the 1004mc match page 1 or should it be what the form says..."comparable sales"? Are the quality and condition code be something different?

Folks...it is what it is. We need to live with it. If you can't...give up appraising for mortgage lending purposes. Endless hours of debate does nothing but make us look silly. Perhaps that is why I say..."and the next blind man......"

If someone gives me an SUV I should learn to drive it rather than whining "But I wanted a Cadillac!".

 

[Lee Lansford]

In practice, there are VERY FEW appraisal reports that rise to the level of "Self-Contained".

It's much more likely (and, I have witnessed this) that some appraisers label an appraisal as Self-Contained when in reality it is barely Summary.

 

[Terrel L. Shields]

John Widdoss used to say all his reports were summary because he really didn't know where the boundaries are on "self-contained"...it sorta implies that you write the history of the world in one report.

I think the OPs complaint however centers around clients that continue to add "stips" to reports...requiring details that most of us would think the sort of describe provisions that are required in a self-contained report. Extended explanatory text, things like aerial photos ("original" aerial photos for instance), zoning maps, letters from zoning commissions and building codes...etc.

His complaint is legitimate. Why are they asking for such details? It's because they don't trust you. They simply do not understand that when people bid against each other for 72 hr. TATs you will typically get the fastest, cheapest, and least reliable product. So they add things so they can vet the quality within the report. An aerial photo, for instance, should show the adjacent homes and if it is abutted against a factory, a cemetery, a shipyard....they can see for themselves that the view isn't "average". Interior photos support the quality ratings, etc.

Since the low bid losers that they hire cannot be depended upon, the AMCs are "making 'em honest" by requiring things that support the assertions in the report. It is far beyond, "Trust me, I am your certified appraiser." The profession has not earned that trust, largely due to those cut rate, cut quality appraisers who remain abundant in the field.

 

[George Hatch]

The ASB has working on revamping our reporting requirements for a long time now and appears to be considering just about every alternative imaginable.

On a practical basis, once you get past certain mandatory disclosures the remainder of appraisal report content is basically a response to those expectations of the intended users that are communicated to the appraisers. When the users aren't looking for a lot of explanation they go with the lite version and when they want a "typical" amount of information they go with the other. As a minimum performance standard the Self-Contained reporting option has been headed for the scrapheap for quite a while.

Some people would argue the basic mandatory disclosures are superfluous but I look at them as being more for the appraisers' benefit than the users; the exception being the 3yr services disclosure.