Analysis Of Prior Sales: A Hidden Retrospective Appraisal?

[Rich Heyn]

Don't the UAD drop downs in the adjustment table summarize the analysis? They certainly demonstrate that the requirement of SR 1 and SR 1-5 (sale type, financing concessions, type of loan, sale conditions, sale date, contract date, etc.) were complied with and reported. Does SR 2 require a narrative summation? Would a statement of how the appraiser determined the information presented in those drop downs by interview agents, etc. suffice?



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One could argue that whatever term (short sale, arm's length, REO, etc.) is chosen in the drop-down menu "summarizes" the analysis that took place. One could also argue that such a response only "states" the conclusion. If I were in front of a state board, I'd be much more comfortable if my report contained at least a few sentences summarizing my analysis, opinions and conclusions than trying to argue that a two or three word response qualified as a summary. Even though "summarize" and "state" are relatively synonymous, my guess is that most appraisal boards would look at the table in AO-11 for SR 2-2 (a)(viii) and 2-2 (b)(viiii) and determine the UAD drop-down response falls short of a summary. My 2 cents worth.

 

[J Grant]

The UAD dropdown box is for most recent sale on grid, not a prior sale. Re, topic is analysis of a prior sale.

 

[Amy Perkins]

I think that we are paid for our opinions, so analyzing the prior sales may be critical in developing your opinion. The real answer is whatever it takes to convince me that I have an opinion. These issues become more important as the complexity increases. It would be very difficult to understand ocean-front values without prior history analysis.

 

[residentialguy]

I was under the impression if an appraiser offers a value opinion, they have done an appraisal, regardless of assignment (or lack of one).

An analysis need not include an opinion of value.

I just looked out my window and said, the house across the street is worth $450k. I just did an appraisal - 100% true. I did not apply Stand 1 & 2. Should I be worried?

No. Why? Because there was no assignment with this. There was no Client that had a vested interest in that property to harm.

 

[J Grant]

If you are talking to yourself, you look out window and say house across teh street is worth 450k, you did an appraisal, but the results stayed within youyr own mind. Imo you still need a work file, because even though you did not share that opinion with anyone else, you derived an opinion of value about the house. Ideally you should have a work file, in case you complain about yourself to the state board! Or, what if it turns out you have a split personality and one of them does not like the value.

 

[residentialguy]

If you are talking to yourself, you look out window and say house across teh street is worth 450k, you did an appraisal, but the results stayed within youyr own mind. Imo you still need a work file, because even though you did not share that opinion with anyone else, you derived an opinion of value about the house. Ideally you should have a work file, in case you complain about yourself to the state board! Or, what if it turns out you have a split personality and one of them does not like the value.

Why do I have a strange feeling there's a bit of truth with that, lol

 

[J Grant]

lol