Ben,
Hiya! Been busy whith personal stuff- that's all.
On the 2075, there is currently some argument over it. Clearly, it is an inspection and not an appraisal since it has no value opinion. However, it is ordered from an appraiser, so the question is now is it a specific part of appraisal practice or just of the larger valuation services umbrella?
Two schools of thought. First is the one that says since it is ordered from an appraiser, it is part of appraisal pracetice. Second is that since it does not involve the analysis of value, it is simply part of valuation services but not appraisal practice.
My view- and it is editorial (meaning do not hang your professional rep on it) is that when these are ordered from an appraiser it is done simply for sake of potential future convenience. They result from a Fannie or Freddie loan under DU/LP (Desktop Underwriter or Loan Prospector) and these can result in future work that DOES involve appraisal practice. Since the appraiser has already seen the property, that data can then be incorporated into a future appraisal assignment, thereby saving some time and perhaps some money. Therefore, I believe it is part of valuation services but not appraisal practice.
But note that others disagree. Either way, the appraiser is bound by the rules (ethics, etc) but since there are no actual standards covering it, none would apply.
I would certainly add scope of work and intended use/users to an addendum, but would probably leave it there. I'd do this only for an abundance of caution and not because I believe it is part of appraisal practice- that way you do not get hurt if the "official" detemination is that it is appraisal practice.
Hope that is clear as mud! Your statement is right on.
Brad Ellis, IFA, RAA
