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Can I verbally communicate a value the day before the written report is transmitted.

Val

Freshman Member
Joined
Aug 6, 2024
Professional Status
Certified General Appraiser
State
South Carolina
I've run into this a couple of times, where I have a value, but for one reason or another it will take another day to put together items in the report that are not value sensitive. In the past, I've told the client that I can't give a value until the report is complete. Is this correct? Would the fact that I haven't put together my comparable maps and addenda exhibits or signed the written report yet prohibit me from communicating a value? If I can disclose the value before the written report is complete, am I correct to assume that I would be required to disclose the verbal communication as a previous report when I submit the written report the next day?

On a semi-related note, I've also run into situations where I can tell without a doubt from my comps that the value will not come anywhere close to the purchase price well before completion of the report. Am I allowed to call the client and communicate this fact, without giving a specific value? I'm thinking that the fact that I would say, "you are not going to be anywhere close to the purchase price", makes it an appraisal because the purchase price is a specific number. Is there any way to do this without it being a standards violation?
 
I've run into this a couple of times, where I have a value, but for one reason or another it will take another day to put together items in the report that are not value sensitive. In the past, I've told the client that I can't give a value until the report is complete. Is this correct? Would the fact that I haven't put together my comparable maps and addenda exhibits or signed the written report yet prohibit me from communicating a value? If I can disclose the value before the written report is complete, am I correct to assume that I would be required to disclose the verbal communication as a previous report when I submit the written report the next day?

On a semi-related note, I've also run into situations where I can tell without a doubt from my comps that the value will not come anywhere close to the purchase price well before completion of the report. Am I allowed to call the client and communicate this fact, without giving a specific value? I'm thinking that the fact that I would say, "you are not going to be anywhere close to the purchase price", makes it an appraisal because the purchase price is a specific number. Is there any way to do this without it being a standards violation?
Sure, if you want to risk your license, go for it. You can do any unethical or risky thing you want to in this world.

The fact that you are asking these questions is concerning.
 
USPAP provides for reports that are written or oral. The requirements related to oral appraisal reports are found in SR 2-4 and the Record Keeping Rule.
 
I've run into this a couple of times, where I have a value, but for one reason or another it will take another day to put together items in the report that are not value sensitive. In the past, I've told the client that I can't give a value until the report is complete. Is this correct? Would the fact that I haven't put together my comparable maps and addenda exhibits or signed the written report yet prohibit me from communicating a value? If I can disclose the value before the written report is complete, am I correct to assume that I would be required to disclose the verbal communication as a previous report when I submit the written report the next day?
Yes, you can report the results verbally. No, its the same report for the same client. You do not have to report it as previous work.



On a semi-related note, I've also run into situations where I can tell without a doubt from my comps that the value will not come anywhere close to the purchase price well before completion of the report. Am I allowed to call the client and communicate this fact, without giving a specific value? I'm thinking that the fact that I would say, "you are not going to be anywhere close to the purchase price", makes it an appraisal because the purchase price is a specific number. Is there any way to do this without it being a standards violation?
If you tell them that its not going to appraise for the sales price, its a appraisal and you best have a complete file to back it up. Its also a very bad business decision. The client engaged you to provide an appraisal report; do it. It it results in them declining the loan they'll have to have an appraisal in the file for their reason so just complete the report as engaged.
 
The ethical part is about the head about the purchase price and your reasons for doing this.
Taht aside, it sounded like a bad business decision. When we deliver the appraisal report to the client, we complete the assignment they asked for ( a written report ), and thus, they have to pay us, and we have grounds to collect if they don't.

But give them an oral value first? (That sounds bad.) Anyway, give them an oral value, and they can cancel the assignment and give you an oral check.
 
I never tell anyone besides the client the appraised value until the report is sent to the client.
Until report is sent, my appraised value can change.
 
Sure, if you want to risk your license, go for it. You can do any unethical or risky thing you want to in this world.

The fact that you are asking these questions is concerning.
STANDARDS RULE 2-4, ORAL APPRAISAL REPORT
To the extent that it is both possible and appropriate, an oral real property appraisal report must address the substantive matters set forth in Standards Rule 2-2(a).

What is risky about doing something that is allowable if you follow the USPAP?
 
Doesn't need to look at USPAP for how to do an appraisal.
Common sense dictates not to disclose value before report is completed.
When agents call me about value, I never give a straight answer. It's true, I won't know where the number falls until the report is completed.
And I tell agents to talk to the client/lender for such value issues.
 
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