Significant Appraisal Assistance (1004p)

[ucbruin]

USPAP didn't make it clear because it used to be unthinkable that anyone other than an appraiser would be doing an inspection of the subject property. Most of the time the obvious doesn't need to be stated. It defies logic than if an appraiser does something then it's one thing, but if an re agent does the same thing, then it's something else.

I can't broker a deal to buy/sell real estate then claim I wasn't acting in a roll of a agent/broker - I was just helping these guys buy a house for a commission. Defies logic.

AMC's are mostly now large corporations, squeezing out every last penny of profit from employees and contractors is a cornerstone of their way of life. They have a whole staff of guys in suits thinking this sh*t up.

"USPAP didn't make it clear because it used to be unthinkable that anyone other than an appraiser would be doing an inspection of the subject property."

When it comes to technological advances which progresses exponentially....
Guideline languages continually lag behind....
Look at the music and movie industries 10+ years ago....
It never dawned on the talent to include language for dvd, streaming, etc. delivery services when creating "residual" agreements....
To them it was only theaters, TV, radio, albums, pre-recorded tapes....

But it would be nice for the appraisal industry to require licensed appraisers to perform any type of appraisal/inspection for FRT mortgage work....

 

[Michigan CG]

We have the Scope of Work Rule which most appraisers would say is a very good thing.

Desktop appraisals have been around for a long time. In the residential world they have a pre-printed Scope of Work where the appraiser relies on the photos and descriptions provided by someone else. . Most appraisers have completed these reports.

The 2055 report has been around a long time. They have a pre-printed Scope of Work where the appraiser relies on the photos and descriptions provided by someone else. Most appraisers have completed these reports.

We have the desktop review reports. They have a pre-printed Scope of Work where the appraiser relies on the photos and descriptions provided by someone else. Most appraisers have completed these reports.

We have the field review assignments. They have a pre-printed Scope of Work where the appraiser relies on the photos and descriptions provided by someone else. Most appraisers have completed these reports.

We have the 1004 form and use it for new construction. The only data we have about the subject property is a photo of dirt and the plans and specs provided by the builder.

In the private world of appraising we have no pre-printed Scope of Work and we develop our own Scope of Work (same with commercial). I have five assignments due in June where my Scope of Work (that I will write) will state that I made no inspection of the subject property and neither did anyone else.

 

[Mark K]

In the private world of appraising we have no pre-printed Scope of Work and we develop our own Scope of Work (same with commercial). I have five assignments due in June where my Scope of Work (that I will write) will state that I made no inspection of the subject property and neither did anyone else.

Scope of work is a wonderful thing; some appraisers don't fully grasp the concept.

I just finished appraising over 11 miles, 32 separate parcels, of abandoned RR R/W for a trails project. Never left the office because I can see more of it from the aerial views than I can from the ground.

 

[J Grant]

We have the Scope of Work Rule which most appraisers would say is a very good thing.

Desktop appraisals have been around for a long time. In the residential world they have a pre-printed Scope of Work where the appraiser relies on the photos and descriptions provided by someone else. . Most appraisers have completed these reports.

The 2055 report has been around a long time. They have a pre-printed Scope of Work where the appraiser relies on the photos and descriptions provided by someone else. Most appraisers have completed these reports.

We have the desktop review reports. They have a pre-printed Scope of Work where the appraiser relies on the photos and descriptions provided by someone else. Most appraisers have completed these reports.

We have the field review assignments. They have a pre-printed Scope of Work where the appraiser relies on the photos and descriptions provided by someone else. Most appraisers have completed these reports.

We have the 1004 form and use it for new construction. The only data we have about the subject property is a photo of dirt and the plans and specs provided by the builder.

In the private world of appraising we have no pre-printed Scope of Work and we develop our own Scope of Work (same with commercial). I have five assignments due in June where my Scope of Work (that I will write) will state that I made no inspection of the subject property and neither did anyone else.

That is true. The SOW varies for assignments, and not all assignments include an inspection., or same degree of inspection.

But when an inspection is done for purpose of the appraisal, it is recognized it was done for that appraisal purpose. Imo USPAP should clarify that an inspection of a property done for the purpose of an appraisal is part of appraisal practice.

Higher expectations of users and purpose usually has an inspection or higher level of it.

1004 P will have same user expectations as 1004, purchase and refi origination loan . The tight turn times will their Achilles heel as well as unknown competence of who the inspector is. The appraiser does not select who inspects and has no supervision over them. You might get a good inspector on one assignment and a careless one on the next.

.

 

[J Grant]

For a perspective - what makes an appraiser an appraiser is their combination of field experience and the data and information and market analysis. One informs the other. DWiley keeps saying there is no "formal training" about inspections in the coursework thus any person /RE agent can do the appraisal inspection (or data gathering, which is it) reducing it to measure and photo. But the appraise is educated about properties from the experience of looking at many properties, seeing the good, the bad , the ugly, and mediocre. That is the reason for X years of supervisor inspects along with the trainee- the appraiser gets to know how to evaluate and compare properties by doing it ( and getting feedback from supervisor,) then in their own practice the years of field work cumulatively builds knowledge as an appraiser inspects many diverse properties and neighborhoods..

I wonder how future generation of "appraisers" if they start their career with this and thus get little field work, will be able to competently evaluate the photos and notes from a third party, since they have so little field experience to put it into perspective..

 

[J Grant]

Scope of work is a wonderful thing; some appraisers don't fully grasp the concept.

I just finished appraising over 11 miles, 32 separate parcels, of abandoned RR R/W for a trails project. Never left the office because I can see more of it from the aerial views than I can from the ground.

Understanding different SOW is not the same as talking about disclosures

If you and your client were fine with you no inspection that was the assignment and SOW. But if client required inspection (or you thought one was needed ) and another party inspected the RR R/W for the appraisal, should that person;s isnpection be disclosed as having contributed significant real property appraisal assistance?

 

[DWiley]

But when an inspection is done for purpose of the appraisal, it is recognized it was done for that appraisal purpose. Imo USPAP should clarify that an inspection of a property done for the purpose of an appraisal is part of appraisal practice.

Because report writing and development often occur simultaneously, many appraisers fail to really distinguish between the two different activities. I think you make the same mistake in many of your posts about inspection. Yes, when we visit/inspect homes we make judgments during that process. But those judgments are made based on the data we collect. The fact that we have often done those two things (data collection and forming judgments about the date) simultaneously does not make them one activity.

Appraisal practice, by definition, is activity conducted by someone acting in the capacity of an appraiser. Hence, as George has pointed out numerous times, the change you are seeking would not be as simple as what you present. It would require changes to some of the most basic definitions in USPAP, and it would have lots of undesired ripple effects.

The SOW Rule would already require proper disclosure of the nature of any inspection that was performed. Mis-classifying a third party inspection as appraisal practice would accomplish no real goal. So, WHY are you so set on having it labeled as appraisal practice? I find your position on this topic very confusing.

 

[Terrel L. Shields]

They're apparently not that worried that the value conclusion might not be as reliable.

Most never wanted neither appraiser nor report. It is a compliance document they would waive if possible

You do know you get a copy of the inspection report with a name on it right?

wrong. It might name them might not, and even so where is their license? What legal liability do they have?

You don't have a real, true licensed appraiser noticing all those nuances."

Exactly. SITG- the licensed have skin in the game. The rest do not. Inspectors have zero skin in the game...no liability. The agents filling out an MLS are cya their own career. They have licenses and SITG. They are not doing it for us, they are disinterested third parties. The inspector is a third party paid for their work. No liability and every incentive to do as many inspections as possible as quickly as possible.

USPAP didn't make it clear because it used to be unthinkable that anyone other than an appraiser would be doing an inspection

true

We have the Scope of Work Rule which most appraisers would say is a very good thing.

Some appraisers are amused at the notion that SOW is a mutually agreed upon process. Being told to take it or leave it regardless the situation, well, I call that the "play ball with me or I cram the bat up yours" scope. The appraiser certainly isn't invited to be involved in developing SOW, it's all on the pre-printed form. ​

 

[DWiley]

Understanding different SOW is not the same as talking about disclosures

If you and your client were fine with you no inspection that was the assignment and SOW. But if client required inspection (or you thought one was needed ) and another party inspected the RR R/W for the appraisal, should that person;s isnpection be disclosed as having contributed significant real property appraisal assistance?

Again, why are you hung up on using that particular label? The third party inspection is disclosed. do you really think that most intended users (and that is who we are supposed to be writing our report for) know the definition of that term?

 

[Lil Rhody]

On a not so light note...newer appraisers will lack field experience, how will they even be able to give a context to what the inspectors send them?

This aspect seems to get overlooked during the hybrid conversations. Experience and education requirements are being relaxed because of a perceived appraiser shortage. If hybrids become the new norm, this new generation of appraisers will not be trained to the level of many seasoned appraisers in the intricacies of property inspection. When/if the hybrid test project fails, the industry could be left with a large number of appraisers who cannot competently inspect a subject property.