Is pulling comparable sales an appraisal?

[Bob Ipock]

Several USPAP instructors over the years have said that if the search criteria is filtered then it is an appraisal. Just pulling up all sales in an area is not filtering them. A Filtered data set would indicate a range in value for a specific type of property.

Correct

 

[itmustbeme77]

Thank you all for the replies, to those saying that it would not be an appraisal

"As defined in USPAP, an appraisal is the act or process of developing an opinion of value. The valuation process is a systematic procedure the appraiser follows to answer a client's question about real property value. The most common type of appraisal assignment is the development of an opinion of market value."

What gives me pause is the line "The valuation process is a systematic procedure the appraiser follows to answer a client's question about real property value." Even though I am not giving a value, I would be using a systematic procedure to answer my client's question about real property value.

I am looking to offer a service to sellers, buyers, or agents in my area where I just pull the most comparable properties and list how they are superior/inferior in GLA, site size, condition, quality, location, etc., without assigning value to the differences.

 

[Dale Floyd]

Zillow provides sales based on parameters, but is not an appraisal.

AVMs provide sales based on parameters, but are not appraisals.

The CMA feature of your MLS program, provides sales based on parameters, but is not an appraisal.

Providing sale data is not an appraisal, as long as you do not offer or insinuate an opinion of value or a range of values.

Giving somebody a handful of MLS numbers is not an appraisal.

If the development, or the process, is the argument - every secretary of every appraiser would be violating the law.

 

[J Grant]

Thank you all for the replies, to those saying that it would not be an appraisal

"As defined in USPAP, an appraisal is the act or process of developing an opinion of value. The valuation process is a systematic procedure the appraiser follows to answer a client's question about real property value. The most common type of appraisal assignment is the development of an opinion of market value."

What gives me pause is the line "The valuation process is a systematic procedure the appraiser follows to answer a client's question about real property value." Even though I am not giving a value, I would be using a systematic procedure to answer my client's question about real property value.

I am looking to offer a service to sellers, buyers, or agents in my area where I just pull the most comparable properties and list how they are superior/inferior in GLA, site size, condition, quality, location, etc., without assigning value to the differences.

I am looking to offer a service to sellers, buyers, or agents in my area where I just pull the most comparable properties and list how they are superior/inferior in GLA, site size, condition, quality, location, etc., without assigning value to the differences.

If you were just pulling comparable properties and filtering them, that might evade the appraisal label
But now you are ranking them, as inferior /superior to a subject and that could start to form a value direction, and a benchmark (greater or less than X ) or a value range is an appraisal.

You don't "list" how they are superior/inferior, as an appraiser one assumes a brain is at work analyzing, so deciding why X is inferior in quality becomes an opinion - too muddy for comfort imo.

 

[Zoe]

Your acting as an appraiser. You need a work file.

 

[Zoe]

But your general public. Don't worry about it. Do it.

 

[Dale Floyd]

To point out that a sale is bigger or smaller in reported GLA is a statement of fact, and not an appraisal.

To point out that a sale is bigger or smaller in site size is a statement of fact, and not an appraisal.

To point out that Formica countertops are cheaper than granite or that Brazilian hardwood is more expensive than rolled vinyl flooring is a statement of fact, and not an appraisal.

To point out that certain locations are selling higher than others is a statement of fact, and not an appraisal.

To point out that a sale has a bricked facade and not vinyl siding is a statement of fact, and not an appraisal. I could do this all day.

An appraisal is when an appraiser takes all the facts, and with skilled training and professional analysis, delivers an opinion of value (or a range of value). An appraiser has never been taken to court because they pointed out that lot #2 is bigger than #8.

Just don’t present anything outside the facts, if you are going down this road. Never be guilty of analyzing the sales when you point out the obvious because that’s the process of appraising something. Never say things akin to “superior in value” or “inferior in marketability”. Anybody can point out the facts without making market adjustments, inferring value, or completing an analysis. If you talk in appraisalese then you are assumed to be speaking as a professional appraiser and should be taken to task. Don’t use letterhead or signature footers professing your qualifications, designations, or business affiliations. In Tennessee, you can go further than other states in this process for banks, under the “Evaluation” clause in our state law.

Most appraiser personalities tend to err toward the ultra-cautious side of any argument which is why you are getting so much negative about this. I personally see no great potential of income from pointing out the facts shown in public records, but I see no danger in doing so as long as it is only a factual setting.

 

[Tom D]

the definition of an appraisal involves a 'value'. if you pick out 'some comps' to show them, then you have determined some 'value' to be so narrowed to. if you give them every sale in that area then that is not an appraisal, but just giving them data. this has been disccused in USPAP in the past, but i can't remember what year, or years.

 

[J Grant]

To point out that a sale is bigger or smaller in reported GLA is a statement of fact, and not an appraisal.

To point out that a sale is bigger or smaller in site size is a statement of fact, and not an appraisal.

To point out that Formica countertops are cheaper than granite or that Brazilian hardwood is more expensive than rolled vinyl flooring is a statement of fact, and not an appraisal.

To point out that certain locations are selling higher than others is a statement of fact, and not an appraisal.

To point out that a sale has a bricked facade and not vinyl siding is a statement of fact, and not an appraisal. I could do this all day.

An appraisal is when an appraiser takes all the facts, and with skilled training and professional analysis, delivers an opinion of value (or a range of value). An appraiser has never been taken to court because they pointed out that lot #2 is bigger than #8.

Just don’t present anything outside the facts, if you are going down this road. Never be guilty of analyzing the sales when you point out the obvious because that’s the process of appraising something. Never say things akin to “superior in value” or “inferior in marketability”. Anybody can point out the facts without making market adjustments, inferring value, or completing an analysis. If you talk in appraisalese then you are assumed to be speaking as a professional appraiser and should be taken to task. Don’t use letterhead or signature footers professing your qualifications, designations, or business affiliations. In Tennessee, you can go further than other states in this process for banks, under the “Evaluation” clause in our state law.

Most appraiser personalities tend to err toward the ultra-cautious side of any argument which is why you are getting so much negative about this. I personally see no great potential of income from pointing out the facts shown in public records, but I see no danger in doing so as long as it is only a factual setting.

The OP's post says superior or inferior, which is an opinion : OP- .I am looking to offer a service to sellers, buyers, or agents in my area where I just pull the most comparable properties and list how they are superior/inferior in GLA, site size, condition, quality, location, etc., without assigning value to the differences.

I feel bad it has gotten to where appraisers are scrambling to come up with services that are not an appraisal! The public can look up sales now online and see the differences for themselves. For free. RE agents pick their own comps Who would want this service where the appraiser refuses to provide a value? And without a value, what are they buying?

Appraisers are trying to avoid doing an appraisal and come up with some cheap offering. If the product is cheap, there is no money to be made. And unless you give strict instructions never to contact you, the person who paid for it will call with questions, and then argue about why this neighborhood sells higher or lower or is considered "Superior" , etc. Wasting all that time, just for a dinky fee, and if you have a conversation, all it takes is one slip up and they can hold you liable for it. (assuming the OP is posting as an appraiser)

Why not just do a desktop appraisal and give a value range? Though few individuals are asking for that either. It's sad that things have gotten to this state. At that point, one might as well just do cheap desktops for the AMC's... or come up with a product that people really want= if that were easy to do, we'd all be doing it.

 

[ucbruin]

I started in '87 and by 1990 I would tell people that lenders would always need appraisers/appraisals....
But would only need to pay low fees for them....
2020/2021 proved me wrong, I hope it wasn't a fluke...
Overall I feel "fortunate" that the appraisal industry lasted as long as it did....