First Exposure Draft - Identifying Comparable Properties

[Lee Lansford]

Now I really understand what was going on with the Appraisal Institute - Appraisal Foundation's dust-up.

IMO, this is appraisal 101 best taught in recognized texts and appraisal courses.

Do we need the APB to spend its resources on such an elementary issue as comparable selection and identification?

Let the foundation set the standards and qualifications.
Let the foundation issue clarification statements when necessary.
Let expert course developers identify how best to structure course presentations to meet the requirements set by the foundation.

I'm in favor of the APB's role of providing some guidance in best practices; especially on controversial or challenging issues (and I don't consider comp identification and selection to be a contraversial issue).
I'm not in favor of it become the course provider for basic education (no appraiser left behind).

You understand the situation quite well and you state it in similar fashion.

 

[ZZGAMAZZ]

I don't understand how the traditional criteria for "market value" can be met when supply is manipulated by institutional owners, and demand is affected by institutional consortiums determined to buy/rent/hold large blocks of single family residences.

 

[3 Putt]

IMO, this is appraisal 101 best taught in recognized texts and appraisal courses.

Do we need the APB to spend its resources on such an elementary issue as comparable selection and identification?

[/I]).

Maybe it is a proclamation on the current state of the appraisal union?

Do they really need to cover the 101 basics? Are there that many appraisers out there who do not understand the essentials?

 

[Randolph Kinney]

I don't understand how the traditional criteria for "market value" can be met when supply is manipulated by institutional owners, and demand is affected by institutional consortiums determined to buy/rent/hold large blocks of single family residences.

The guide to comparable selection does not cover that or when there are too few sales that fit any sort of measure of comparability. The appraiser uses what he has, not what is ideal. The results are sometimes purely based upon the appraiser's judgment that are reflected in the wild*ss adjustments made to the sales used.

 

[Lee Lansford]

...

Do they really need to cover the 101 basics? Are there that many appraisers out there who do not understand the essentials?

The answer to both questions is YES.

If in doubt, spend some time here at the AF. Just kiddin'...but not totally.

Seriously, it would be amazing if it were not so frequently repeated, the number of appraisers who really do not understand principles and are mechanical in their approach to valuation.

 

[Mr Rex]

Perhaps this is in response to the hue and cry from the NAR et al that REOs etc are not to be used as comparables, never ever?

 

[Carnivore]

Looks like this will expand the size(pages) of Standard 1 from five pages to 6 pages.

This will also result in several extra pages of FAQ's , AO's, statements and defintions.

If the training is really that weak why start with USPAP?

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additional thought.

This is great. If it goes in USPAP then that WILL be the standard, PERIOD. Now the USPAPIANS will say explain it in the report when you cant meet parts of this standard.

I agree with that if they actually say it. This is SUPER because it will absolutley require more time(you have to document your efforts, successful or not in acquiring the verifications) and time is money. Woo Hoo! We are slowly working are way up to $1,000 dollar SFR Fees.

 

[Papoua Jose]

What exactly are the "recognized methods and techniques"?.

Whatever a state appraisal board deems them to be.

 

[Papoua Jose]

Perhaps this is in response to the hue and cry from the NAR et al that REOs etc are not to be used as comparables, never ever?

100% agree!

 

[Carnivore]

Hmmm.. Please tell me they are not listening to the NAR. Good Grief we are doomed if they are. I realize they were founded in 1908, but they are advocates for themselves, not the property owner.

We(field of appraising) have decades of published appraisal techniques and precedures.

Why is this so hard to recognize today!