Pamela Crowley (Florida)
Elite Member
- Joined
- Jan 13, 2002
- Professional Status
- Retired Appraiser
- State
- Florida
For our USPAP gurus, what Scope of Work would be USPAP compliant for a desktop appraisal???
Possible Primary Competency 'Requirement'?:
Appraiser is familiar with the subject neighborhood, knows and understands the nuances that cause adjustments in that particular neighborhood, had driven through that neighborhood and has completed ## of full interior observation appraisals in that neighborhood during the past # years.
????? - What would make an appraiser 'competent' to do a desktop only appraisal in a given neighborhood???
Next, if the competence level of the appraiser is high enough to continue, is what does it take to make the report 'credible' and not misleading?:
Minimum process?:
1 - Appraiser uses the County Tax Records for the subject information as long as there is enough information in those records and the appraiser already KNOWS the tax records for that neighborhood is 'typically' reliable.
There are many areas, even within the same county, where some of the tax records are known to be NOT realiable, those would be areas where the appraiser must decline or upgrade the appraisal order.
2 - County Records are considered reliable enough to continue so MLS data of Active, Pending, Sold (within past yr - within past 6 mos) are researched along with listings that expired or withdrawn during the past year.
3 - Tax records for the sales chosen as potential comps are then pulled and compared to MLS data. Inconsistencies are noted and calls are made to the Realtors to attempt to verify data. The 3 newest, nearest, most similar sales found that are believed to be qualified arms-length transactions are then used as the comps.
4 - Analyze and determine the correct adjustments.
5 - Write the report. Write the disclaimers due to unverifiable data regarding the subject.
Am I missing items that need to done?
Seems to me that it would be imperitive to add verbiage that if the client wants to upgrade after the desktop appraisal is delivered, it could change almost everything if the tax records do not match the reality of the subject property and the whole process would then need to done all over again with new sales researched and new comps chosen.
I do wonder why any lenders want these. With what they are willing to pay for these, only the newbies that wouldn't have the experience and 'competence' to even accept an order like this would be the only ones doing them???? If guesses are all they want, why not just use an AVM??? Could it be for the liability factor only???
Musing this morning...
Possible Primary Competency 'Requirement'?:
Appraiser is familiar with the subject neighborhood, knows and understands the nuances that cause adjustments in that particular neighborhood, had driven through that neighborhood and has completed ## of full interior observation appraisals in that neighborhood during the past # years.
????? - What would make an appraiser 'competent' to do a desktop only appraisal in a given neighborhood???
Next, if the competence level of the appraiser is high enough to continue, is what does it take to make the report 'credible' and not misleading?:
Minimum process?:
1 - Appraiser uses the County Tax Records for the subject information as long as there is enough information in those records and the appraiser already KNOWS the tax records for that neighborhood is 'typically' reliable.
There are many areas, even within the same county, where some of the tax records are known to be NOT realiable, those would be areas where the appraiser must decline or upgrade the appraisal order.
2 - County Records are considered reliable enough to continue so MLS data of Active, Pending, Sold (within past yr - within past 6 mos) are researched along with listings that expired or withdrawn during the past year.
3 - Tax records for the sales chosen as potential comps are then pulled and compared to MLS data. Inconsistencies are noted and calls are made to the Realtors to attempt to verify data. The 3 newest, nearest, most similar sales found that are believed to be qualified arms-length transactions are then used as the comps.
4 - Analyze and determine the correct adjustments.
5 - Write the report. Write the disclaimers due to unverifiable data regarding the subject.
Am I missing items that need to done?
Seems to me that it would be imperitive to add verbiage that if the client wants to upgrade after the desktop appraisal is delivered, it could change almost everything if the tax records do not match the reality of the subject property and the whole process would then need to done all over again with new sales researched and new comps chosen.
I do wonder why any lenders want these. With what they are willing to pay for these, only the newbies that wouldn't have the experience and 'competence' to even accept an order like this would be the only ones doing them???? If guesses are all they want, why not just use an AVM??? Could it be for the liability factor only???
Musing this morning...
, but it's ten years later now.
