Where Do You Think "geographic Competency" Begins And Ends?

[George Hatch]

What is the difference between lacking geo competency and just not yet have completed the tasks required by SR 1-2 and 1-3?

I think that's the operative question here and I wish I had thought to ask it that way.

 

[Terrel L. Shields]

removing geo competence as a work standard or requirement in appraisal, j

no such competence is required by USPAP.

USPAP is a minimum standard

It is no standard at all when usurped by FHA, VA, & Fannie and their own special rules. Why bother with USPAP when it is a hollowed out shell and Fannie dictates form, function, & even competence to TAF. As the broken record I am, You cannot serve two masters. And Fannie instructions are clear but hardly "supplemental" to USPAP. They superseded them knowingly.

 

[J Grant]

What is the difference between lacking geo competency and just not yet have completed the tasks required by SR 1-2 and 1-3?

That is like asking what is the difference between appraising real estate, which is fixed location, or appraising personal property, such as jewelry or art with their value not tied to location.

Regarding getting competent for an assignment-for SR1-2 or 1-3, it might involve learning /applying an unfamiliar appraisal method, or digging around for a fact. Whereas geo competency is trying to separate the inseparable, the fact that so much of a property's value is integral to location and local influences fanning out to regional. Whether one can swoop in and figure it out well enough to be competent in a new area within a reasonable time of when assignment is due might vary widely among appraisers ; and it can then vary from assignment to assignment or market to market for the same appraiser.

The problem is when an appraiser assumes they are competent to go into a new area, and does a thorough job, but unknown to them, they missed out on a local X factor that influenced value. They won't know that till the assignment is over, and even then might not know it , unless it is reviewed by a party who finds it. Some appraisers might find out midway through an assignment and choose to withdraw.

Then there are the volume pump them out appraisers who don't care, whether they work locally or in a wider area they dump in generic rote results- it's bad enough if they practice locally, do we want them turned loose in far off areas?

 

[J Grant]

Terrel- USPAP does not require geo competence, but Fannie requires the appraiser already be competent for the assignment ( which would extend to geo competence) and many lenders and or AMC's have requirements of geo competency for assignment. Since the poll was about the ordinary SFR assignment, the volume of those assignments are lender work.

 

[DWiley]

That is like asking what is the difference between appraising real estate, which is fixed location, or appraising personal property, such as jewelry or art with their value not tied to location.

That question has a clear and well established answer that virtually any appraiser can provide. That is not true at all for the question I posed.

In fact, best I can see, very few have even attempted to answer the question I posed, opting instead to either critique the very asking of the question, pose a conspiracy theory, or provide emoational rants based on the apparent fear that the cheese is about to be moved.

 

[J Grant]

If you hate everyone's answer so much, perhaps provide the answer you think is a better one? We can learn...

 

[DWiley]

If you hate everyone's answer so much, perhaps provide the answer you think is a better one? We can learn...

Well.....if I had the answer, I wouldn’t be asking.

 

[J Grant]

Danny, not trying to evade the answer ( whatever you think it might be), but the question itself perhaps is impossible to ever adequately answer for other appraisers en mass, let alone for oneself.

For residential RE, the MV opinion definition hinges on a well informed or well advised buyer or seller. Do you think a buyer, purchasing from afar, looking at photos and an overhead map, would make the same purchase decision as if they really know the area? We quite frequently see out of town buyers choosing differently or paying differently than local buyers. I believe even educated appraisers could fall into that same dilemma when they attempt to appraise out of area relying on overhead maps, photos and data,

Though a personal inspection would help , it is preposterous to think that for lender work they would send, or pay for, an appraiser to go far away esp to other states /regions simply to do an ordinary SFR assignment.

The trying to get it right appraisers whether they visit personally or not, would carefully look into many local aspects and do research and make lots of calls , while the volume fast appraiser would stick in any old comp and make any convenient assumption. since appraisers run such a wide gamut between the two, how can this question be answered , especially since the rote pump them out appraiser might very well be those who respond sure, I can appraise anywhere, geo competence is not needed.

 

[J Grant]

Well.....if I had the answer, I wouldn’t be asking.

Fair enough ! Maybe there is no answer, which points back to that some questions just cant' be answered , or at least everyone would have a very different, highly charged answer... (like is there a God ....ego much comparing God to appraisal ?)

RE is fixed location based and the MV definition references well informed or well advised buyers and sellers...how can an appraiser be less well informed about an area than the typically motivated buyers and sellers are?

Perhaps you want theory and not practice, but I know on a practical level, RE agents or owners/builders frequently ask if I know the area and they are grateful when I tell them I am locally based and know the area well- at which point many of them tell stories about a terrible job from an out of area appraiser. Do the opinions of these people who are vested in the market mean nothing? I think they mean quite a bit.

 

[Joe Flacco]

The answer is the probability of screwing up 1-2 and 1-3 increases without already having geo-competency prior to beginning 1-2 and 1-3.