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Bifurcated appraisals...inspection reports

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glenn walker

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Oct 11, 2006
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Certified Residential Appraiser
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California
Well, I suppose that if...if...a Realtor or anyone else is found to be non-compliant with Illinois' law for Home Inspectors, NAR can take that up with the attorneys for the state :).
So I guess you are fine with hybrids as long as your State makes them licensed home inspectors and they can generate additional revenue. The problem is that would give even more legitimacy to second and third part inspectors - Hell now the appraiser could meet a licensed home inspector and he could do all the leg work. This may solve the appraiser trainee issue because now the appraiser and lender will feel highly confident because after all a State Licensed Home Inspector measured the house and took those photos and a State Licensed Appraiser completed the valuation part.
 

George Hatch

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Jan 15, 2002
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Certified General Appraiser
State
California
Appraisers have spent considerable effort in disclaiming the technical competency of a home inspector. Not to mention the point that the topic isn't part of our QE or CE requirements.

Depending on how the state laws are written - which is a legal question - it may be that the actions of people performing the onsite activities described may not rise to the definition of what the licensing programs for a state's home inspector license are intended to regulate.

I wonder what level of regulation is applicable to the people who are performing inspections for the insurance companies? Whatever level that is may be the more appropriate benchmark for the people doing the onsite activities in these hybrid assignments.
 
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leelansford

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Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
So I guess you are fine with hybrids as long as your State makes them licensed home inspectors and they can generate additional revenue. The problem is that would give even more legitimacy to second and third part inspectors - Hell now the appraiser could meet a licensed home inspector and he could do all the leg work. This may solve the appraiser trainee issue because now the appraiser and lender will feel highly confident because after all a State Licensed Home Inspector measured the house and took those photos and a State Licensed Appraiser completed the valuation part.

My thoughts on such--hybrid--appraisals are not central to what brought me here (my original post). But, there has never been a requirement within USPAP that the appraiser personally inspect a property in order to offer an opinion of value. I do know that I don't want "the butcher, the baker, the candlestick-maker" doing the inspection of these properties.
 

leelansford

Thread Starter
Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Appraisers have spent considerable effort in disclaiming the technical competency of a home inspector. Not to mention the point that the topic isn't part of our QE or CE requirements.

Depending on how the state laws are written - which is a legal question - it may be that the actions of people performing the onsite activities described may not rise to the definition of what the licensing programs for a state's home inspector license are intended to regulate.

I wonder what level of regulation is applicable to the people who are performing inspections for the insurance companies? Whatever level that is may be the more appropriate benchmark for the people doing the onsite activities in these hybrid assignments.

Yes, "a legal question". We shall see what comes.
 

Mr Rex

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Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
(4) Home inspection. – A written evaluation of two or more of the following components of a residential building: heating system, cooling system, plumbing system, electrical system, structural components, foundation, roof, masonry structure, exterior and interior components, or any other related residential housing component.
 

George Hatch

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Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
It may very well be that if these inspections aren't already regulated they eventually will be; and if there aren't already qualifications criteria for the people performing them then that's probably just a matter of time.

I think it might turn out to be a little ironic if, as a result of requiring these people to be trained and regulated in that activity that those individuals might actually end up with more qualifications to perform those activities than the appraisers who are doing the same thing as part of their appraisal process. How much fun would that be? If the broker who is duking it out with the appraiser over the value of the home has an inspection qualification the appraiser doesn't have that could lead to the appraiser taking a beating over competency.

I mean, this could end up with appraisers in such a state being required to obtain and maintain another license and another level of liability in order to perform their work.
 

Elliott

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Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
Ram said, "May take this course IF I am still around next year! Appreciated. "

Only about 1/4th of the class was about Hybrids, but it made the point there was all this noise about them and the stakeholders want these things and times change, but then when they ask and answer the questions, so what is the appraisers responsibility, they say, of course a credible report right up there with the minimum standards of 1 and 2. So there's no assumed 'break' in effort. You can sit in a white room but if your report veers into the uncredible lane, then don't expect anybody to rescue you. The other 3/4ths of the class was about everything you had to do as an appraiser, or essentially a Update class. I got really tired of discussion of HC and EA and Restricted, since I've never done a restricted and probably only used a EA a few times.

I have no plans to do them, but I'm at the end of my career.
 

chad hampton

Senior Member
Joined
Nov 10, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
USPAP has never required an inspection of the property. That isn't the issue. The issue is - when an inspection of the property is called out for to be used in the development of an appraisal - who is the person(s) that should be doing it. That is the issues that boards are dealing with. In the past, it was unthinkable that anyone besides the appraiser would be doing property inspections for the appraisal. But when there is money to be made, the bad actors will always find a way to skirt around what the rest of view as common sense.

And USPAP does give clear examples of significant appraisal assistance.
 

EddieB

Elite Member
Joined
Feb 17, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
Chad, reading some of the loudest “talking” heads on here, they don’t seem to see an issue with this type of inspection and reporting. I believe they’ll be proven wrong.
 
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