Significant Appraisal Assistance (1004p)

[Mark K]

....be disclosed as having contributed significant real property appraisal assistance?

Inspection assistance? Yes.

Significant appraisal assistance? No.

 

[J Grant]

You are not trying to "update' anything. You want to change the definition of "Appraisal Practice" to include activities of non-appraisers. That is a terrible idea that would be VERY detrimental. You just cannot (or will not) see that because you are arguing base don emotion rather than logic.

Again i ask, why is it so important to you that the term "significant appraisal assistance" be applied? You still have not answered that.

No, I do not watn to change the definition of appraisal practice to include activities of non appraisers. I want the definition of what comprises appraisal practice to include an inspection done for the purposes of an appraisal.

If logical or compliance out come of that is only cert/licences appraisers can do the inspection when a cert/license appraiser is required for assignment so be it..

The disclosures is different than the definition, correct?

Why it is important to me - If GSE's want to use non appraisers to do the appraisal inspection, but not call it that to avoid liability crossing into appraisal practice by label of data collection, yet still call it an inspection for gravitas ( misleading) USPAP needs to address this - clarify a non appraiser sent on site to do "data collection" have it clearly labeled they did data collection, and not an inspection .

It needs be disclosed that a third party inspected or that the appraiser did not inspect.
To keep it from crossing into appraisal practice, the GSE's claim the "inspector" is only data gathering. Which is it then? Choose one. Why are they called an inspector, if they are not a home inspector, and they are not performing an inspection, but rather a data collection?

If they want to continue with the data gathering trope, then referring to it as an inspection,a nd calling the person doing it an inspector (unless they are a licensed home inspector ) is misleading. USPAP needs to clarify if a non appraise is data collecting on site it be called that and their non appraiser and license (if they have one in ) be clearly disclosed throughout the process..

report disclosure: Joe Smith, RE agent performed the data collection of subject onsite on X date.

making appointment: Joe Smith, licensed RE agent will be coming to your house to do a data collection for the appraisal

One of USPAPs fundamentals is not be misleading, then their definitions and disclosures need to change to ensure that with a market sea change of non appraisers inserted by GSE's.

 

[djd09]

Perhaps. But I see a different possibility. One thing all this discussion has done has highlighted the lack of formal training/education in inspection for appraisers. Many want to proclaim the superiority of an appraiser's inspection - but where s the objective evidence of that? How much formal training in inspection is required of an appraiser? (answer - none).

So, I see development of (required) education on the topic, and I think that would actually be a good thing. The PAREA program could help everyone (including seasoned appraisers) hone inspection skills.

How is that lawsuit going? Is SL paying 'inspectors' minimum wage, yet?

 

[DWiley]

How much formal training in inspection is required of an appraiser? (answer - none).

I guess it would depend on how you define formal training. If one defines formal training only as course taken online or in person to either get your license or retain it, then our definitions would vary. I consider the training my mentor gave me during my two years of apprenticeship as formal training that was required to make me a competent appraiser. That training included subject inspection methodology and without it I would not consider myself competent to appraise. My mentor had a regimented schedule that we followed for the first 6 months of my training. It was well thought out and taught me to walk before I could run.
I do agree with you that this issue has shed a light on the lack of courses that teach basic inspection techniques. In this thread alone there have been a number of disagreements on something as simple as measurement techniques and taking measurement and pictures should be the easiest part of an onsite inspection.

It sounds like you were very fortunate to have a good mentor. Many did not have such a good experience as a trainee. And, even with the best of intentions, training by a mentor is inherently limited to the experience/background of the mentor.

 

[DWiley]

No, I do not watn to change the definition of appraisal practice to include activities of non appraisers. I want the definition of what comprises appraisal practice to include an inspection done for the purposes of an appraisal.

Thank you for illustrating my point so well

 

[J Grant]

Thank you for illustrating my point so well

Then I have to work on that verbiage thanks!

 

[gregb]

There is most likely a measurable (no pun intended) difference between a trainee who has passed several appraisal courses getting trained by a supervisory appraiser in the inspection process versus a non-appraiser inspecting without supervision and without having taken any appraisal courses. There is a reason some clients insist on the certified appraiser signing as the inspecting appraiser.

 

[J Grant]

It sounds like you were very fortunate to have a good mentor. Many did not have such a good experience as a trainee. And, even with the best of intentions, training by a mentor is inherently limited to the experience/background of the mentor.

Even the worst mentor offers better training on how to inspect a house than a RE agent gets ! IF an appraiser has a weak mentor, they can supplement that with additional reading /other education on the subject.

Mainly though it is the years of field experience / inspections of many diverse properties that educates the appraiser and forms a cumulative knowledge base- as well as reconciling what they observe at the property with the cost approach, data analysis, comparative property ranking, talking with contractors, flippers , homeowners , builders, etc.

 

[George Hatch]

The only sea change that is occurring is that the GSEs and other lenders are considering an expansion in the types of appraisals they'll accept.

 

[Mr Rex]