- Mar 20, 2008
- Professional Status
- Licensed Appraiser
Remember the definition of real estate, per USPAP: an identified parcel or tract of land, including improvements, if any. Back to basics. Not just the rights, but the land itself.You want residential appraisers to do land analysis? Because the house can be moved.
But while the location is the big one for Realtors,
for appraisers, it's the "rights" that are being valued.
Even large homes can be moved.
View attachment 51515
John and Angela Hodge simply could not face leaving Ballingdon Hall, their 16th-century Grade II-listed Elizabethan manor house in Sudbury, so made the audacious call to just take it with them.www.dailymail.co.uk
The appraisal question, is,
once moved, will the home have a different value than where it was before, and if so, WHY.
but that's the part no one wants to discuss, which centers around location, but is tied to the land, while everyone wants to comment to the value of the "home" which costs as much to build as the home in a different location with a higher value.
Within the context of the OP, well, develop and write a supportable appraisal report and while it may not prevent you from getting accused of racism in your report, it will (should) keep you out of appraiser jail.
I think within the context of the OP it won't make any difference. Many people look at the EMV and the comp addresses/photos and don't read the report. Its not about being a martyr (to what I ask?), its about writing a credible report. That is your only defense.
How about avoid the option of martyred, and just explain why there is no cost difference between similar homes in different neighborhoods, but rather the value difference between different locations with similar improvements and expenses, is in the location of the land.
Actually, we are responsible for the quality of our work.
USPAP puts us in control of the quality of our work. Not all of our work is for a lender. And who is going to get thrown under the bus when an appraisal is in question? It always includes the appraiser. So just do your job.XVII. Program Compliance
Deficiencies in an institution's appraisal and evaluation program that result in violations of the Agencies' appraisal regulations or contraventions of the Agencies' supervisory guidance reflect negatively on management. An institution's appraisal and evaluation policies should establish internal controls to promote an effective appraisal and evaluation program. The compliance process should:
Maintain a system of adequate controls, verification, and testing to ensure that appraisals and evaluations provide credible market values.
Insulate the persons responsible for ascertaining the compliance of the institution's appraisal and evaluation function from any influence by loan production staff.
Ensure the institution's practices result in the selection of appraisers and persons who perform evaluations with the appropriate qualifications and demonstrated competency for the assignment.
Establish procedures to test the quality of the appraisal and evaluation review process.
Use, as appropriate, the results of the institution's review process and other relevant information as a basis for considering a person for a future appraisal or evaluation assignment.
Report appraisal and evaluation deficiencies to appropriate internal parties and, if applicable, to external authorities in a timely manner.