Does Your E&O Cover Measuring Services?

[CANative]

USPAP Standards Rules would not apply to Appraisal Practice which the service offered by the OP definitely is. GLA is an aspect of value or else why would we measure homes and make GLA adjustments.

Meaning, services provided (usually to homeowners or real estate agents) to measure a house (same as for an appraisal) for the purposes of listing a house for sale?

If your E&O covers it, please share your carrier info.

If it doesn't, and you measure houses as a service as an appraiser, how do you cover your liability?

The OP is choosing to act in the role of appraiser in performing this valuation service which results in expectations by the intended user. Appraisal practice is a sub-set of valuation services.

Some appraisers on this thread need to dust off their 2016-2017 USPAP and read AO-21 as many times as it takes to sink in.

There is too much on this to post snips or passages. It's kind of a recurring issue throughout USPAP. A more holistic reading is required. Use word searches for "valuation service" and read all passages as they come up.

 

[DWiley]

I personally do not like the phrase "Valuation Services" because many think that there has to be a value for a service to be a valuation service. That just isn't the case. I proposed changing the term to "Property Services" for clarity, but that proposal went nowhere.

 

[CANative]

I personally do not like the phrase "Valuation Services" because many think that there has to be a value for a service to be a valuation service. That just isn't the case. I proposed changing the term to "Property Services" for clarity, but that proposal went nowhere.

No one other than appraisers really needs to understand esoteric stuff like this so as long as appraisers read USPAP until they finally figure it out then the nomenclature shouldn't matter.

 

[Ahhhh Yeahhhh]

Seriously????

I understand liability... But how can you skrew up a measurement? Measure all four sides, if they add up you are good. If they don't then remeasure. I would think your liability would be minimal unless you are truly careless.

 

[CANative]

Seriously????

I understand liability... But how can you skrew up a measurement? Measure all four sides, if they add up you are good. If they don't then remeasure. I would think your liability would be minimal unless you are truly careless.

How many "measure clients" can an appraiser get for 4 sided rectangles with some room labels? It's more likely they're not going to bother unless the improvements are at least moderately complex. And do they want a floorplan to go with that? What are they going to do with it? Show it to prospective buyers who will use it to figure out if their furniture is going to fit?

Why do they want an APPRAISER to do this? Likely to transfer liability. If the measure is off by 20 feet and some buyer looks at an appraisal showing $275/sf at the top of the adjustment grid they'll think they overpaid by $5,500.

It's all a matter of expectations and that's why this type of service marketed by an appraiser and hired because they are appraiser is referred to as Appraisal Practice. Portions of USPAP apply.

 

[djd09]

The term estimation is not comprehended by some.