Analyze this statement.

[T.J.]

BTW.. Screw Fannie's goofy, poorly designed "review" form 2000. The format is ridiculous.

Amen. Another "we want a square peg put into a round hole" scenario.

 

[Joker]

First of all, what I am most alarmed about is that a certified appraiser has such a limited understanding of USPAP. Mr. Johns, if you need help and your "mentor" isn't available, call me.

Secondly, Ohio is not a mandatory state. It is not required to have a license to do an appraisal or a review. With that said, however, I do agree that in most cases a trainee should not be performing reviews of appraisals by certified appraisers. The rationale for my opinion is that the trainee lacks the knowledge and understanding to perform a competent review. Further, the certified appraiser is assumed to be more educated, and experienced. It is akin to a high school basketball player second guessing the coach.

In this case, the trainee appears to have more knowledge, understanding, and/or experience than the certified. I am often the critical one here, but for crying out loud folks, back off a bit.

 

[Joker]

Oh, and Mr. Johns, please send in that report to the state.

 

[hastalavista]

No problem. Once the trainee is changed after my test is taken and passed I'll be happy to pose the question again. This time I know what words to say (more importantly what words not to say). I was asking thoughts about a statement, not why I am doing what I'm doing. But hey what's a little fun and excitement to make the day a little better huh?!

I don't have hard feelings toward ANYONE. I respect everyones opinion when it's presented in a non threatening way. So it's all good.

Sounds good.

Now, to your original question:

"The appraiser used an active listing as an additional sale in this appraisal report. According to USPAP, an active listing is considered a comparable sale and can be used as such. USPAP only requires the appraiser to have 2 valid sales in the appraisal report that establishes market value for the subject property. The appraiser used 3 valid sales in this report with an active listing to show that the market is stable for this area."

I came across this in a review and was dumbfounded. One where can I prove this not to be true. But after looking though USPAP it does not say that you have to have three sales. BUT I do know it doesn't say you only have to have two. So where do I start to dismantle this statement with crazy big words? Any ideas?

As others have said, USPAP does not give a specific as to the number of sales comparables or even if sales comparables need to be used.
My recommendation in addressing this comment (if it is necessary) is to simply say that the reference to USPAP is incorrect and no such citation exists.

If the report is being done for a mortgage finance transaction and completed on the 1004 form, it is possible that the writer is getting USPAP and Fannie guidelines confused. If so, even there he or she is incorrect because Fannie says 3-closed sales (from the 2007 selling guide- my bold after the title):

XI, 406.02: Selection of Comparable Sales (06/30/02)

The appraiser must report a minimum of three comparable sales as part of the sales comparison approach to value. The appraiser may submit more than three comparable sales to support his or her opinion of market value, as long as at least three are actual settled or closed sales. Generally, the appraiser should use comparable sales that have been settled or closed within the last 12 months. However, the appraiser may use older comparable sales if he or she believes that it is appropriate, and selects comparable sales that are the best indicators of value for the subject property. The appraiser must comment on the reasons for using any comparable sales that are more than six months old. For example, if the subject property is located in a rural area that has minimal sales activity, the appraiser may not be able to locate three truly comparable sales that sold in the last 12 months. In this case, the appraiser may use older comparable sales as long as he or she explains why they are being used.

Note that the language is specific: Must report a minimum of three comparable sales. Also, a comparable sale is one that is settled or closed sales. A settled sale (as far as I know) is one that is closed- however I could not find this term defined in my two dictionary sources.

I don't know how significant it is to your assignment that the report's specific comments need to be addressed; if it is significant then as I already said I'd simply say they are unfounded.

As to the originator being a certified license-level appraiser, it should be obvious to all that licensing is no guarantee of competence. However, I personally would expect certain license levels to have a certain a minimum competency level, and I would expect the higher the license level, the greater the competency.
So what I would expect from a certified license holder is different from what I would expect from another license level holder (like a trainee, for example! :new_smile-l: ).

 

[Kevin Mc]

Thank you.

Why is a trainee doing a review anyway? Do you have expertise in review? :Eyecrazy:

The idea of destroying this report, and that is apparently what you are trying to do, leads me to conclude you have bias and you should turn down the assignment. Its not your job to "dismantle" its your job to do an adequate review. Not sure how you do that being a trainee.

While the appraiser may have made statements that are questionable(no doubt) is the report credible? Is the value well supported? was reasonable due diligence performed? This is what reviews are about. Dismantling w/ big words? You better be very sure about your approach to attacking another appraiser. You obviously should not be doing this review because your approach certainly does appear biased.

 

[PropertyEconomics]

DELETED ... the reason ... why bother?

Carry on.

 

[Roger Murdock]

"The appraiser used an active listing as an additional sale in this appraisal report. According to USPAP, an active listing is considered a comparable sale and can be used as such. USPAP only requires the appraiser to have 2 valid sales in the appraisal report that establishes market value for the subject property. The appraiser used 3 valid sales in this report with an active listing to show that the market is stable for this area."

I came across this in a review and was dumbfounded. One where can I prove this not to be true. But after looking though USPAP it does not say that you have to have three sales. BUT I do know it doesn't say you only have to have two. So where do I start to dismantle this statement with crazy big words? Any ideas?

I'm not sure whether to laugh, or cry....

 

[T.J.]

While the appraiser may have made statements that are questionable(no doubt) is the report credible? Is the value well supported? was reasonable due diligence performed? This is what reviews are about. Dismantling w/ big words? You better be very sure about your approach to attacking another appraiser. You obviously should not be doing this review because your approach certainly does appear biased.

Thank you! Thank you for reading the very first post in this thread and missing the next 50. Because I'm pretty sure that common sense would have told you I had that conversation with two people already. One was nice about and it hasn't hung it over my head the whole time. The other....well, we are getting there. I'm not doing it with a third. Have a nice day.

 

[T.J.]

You know what. I apologize. I'm normally not a rude obnoxious person. And I'm not going to make excuses as to why this has turned me into one. I'm just going to say sorry and hope you can forgive me.

 

[Kevin Mc]

Wrong.

This statement is blatantly false and was made by someone who is supposed to have had many many years of training and experience, sat through hours of classes, and so on. That was my reason for the original post. Is how can someone who has had all of this training and experience make such an unfounded statement and think it's alright and that it will fly.

I have read the thread, i have read 1 assignment/2 assignment etc...I read all your backtracking. I read through your inability to actually listen to the advice offered. You caught a bad statement in a report. so what? State it What does that have to do with the rest of the report? I have ordered in excess of 1000 reviews. I have performed as many. Cut to the chase. The statement is poorly worded, so what? Is the report credible? Is the opinion of value well supported? I understand you having problems with the language (agreed, it is terrible) however your bias from the get go is evident and continues throughout 5 pages. That is problematic, especially from a young gun trainee. Cranky old guys like PE and Webbed are entitled, you aren't.