Draft Reports

[Hamlet]

Not even close.

A "Draft" report or any other type of interim product is simply a form of communication with the client, just the same as an email or a phone call. With sophisticated properties, there can frequently be differing opinion as to how various things can be interpreted, i.e., lease clauses, extracting capital expenses from statements, what is recoverable, etc. Also, the client can ask that certain areas of the report be explained better, i.e., absorption, vacancy estimates, market rental rates, etc. It's also used a check to make sure that the appraiser didn't miss something that is obvious to the client, but may not be obvious to a third party. It is simply a tool to arrive at a better work product - nothing more and nothing less.

As I use it, the term "draft" is used to indicate that the report does not necessarily constitute the finished work product, not that it is some WAG. I have never submitted a "draft" report to a client that I wouldn't feel comfortable signing on the spot.

What is not completed that you can call it unfinished work product, but still submit to the client?

 

[Mr Rex]

You are in Illinois. Your state board director/head honcho is a frequent contributor here and easily accessible from what I can tell. Why not ask him? I look forward to hearing the results.

 

[Lee Lansford]

...If you don't want to provide "drafts", then don't. Just don't tell me I'm in violation of USPAP if I do.

When you provide a "draft" to your client, does it include an opinion of value?

 

[Ken B]

I can foresee situations where a client knows that other parties will be relying on information contained within a report and would desire to review that information prior to finalization of the appraisal. In such a case, the client would wish to preview the report in order to ensure that the information has been adequately described and will be understandable to the other parties.

Not all cooperative actions between an appraiser and client are unethical.

 

[Mr Rex]

I
Not all cooperative actions between an appraiser and client are unethical.

Can I pass this coded language on to lenders and brokers? It sounds so official and acceptable coming from a AI designee.

 

[PL1957]

What is not completed that you can call it unfinished work product, but still submit to the client?

When you provide a "draft" to your client, does it include an opinion of value?

Let me know your thoughts on the FAQ I posted.

You are in Illinois. Your state board director/head honcho is a frequent contributor here and easily accessible from what I can tell. Why not ask him? I look forward to hearing the results.

For further discussion and Brian's opinion, please refer to http://appraisersforum.com/showthread.php?t=132264

In the meantime, I'm off to a rooftop to root for the Atlanta Braves.

 

[Mr Rex]

I didn't read the whole thread, but it seems as if Brian shot you down adn you got peezed. Why not quote him directly where he says its acceptable. or is that like signing a "draft".

Psst: This is just between us, its not official, I'm an appraiser, I'm telling you what its worth, but I don't want to be held to any sort of standards, ya know what I mean? I think that freckle is cancerous, but I'm not a doctor, but I watched Discovery Health last night from my room at the Holiday Inn Express. Did I mention my credentials? Never deal with anybody thats not an AI designated appraiser. They will lead you off the path of righteousness.

 

[Hamlet]

PL,
My take on what Brian said is that you better have a signed certificate. Illinois does not care if the client does not want a signed certificate; it is the APPRAISERS responsibility to have a signed certification.

I am still curious what is not completed that you call it unfinished, but it is still submitted to the client. Would that not be misleading?

 

[Ken B]

Can I pass this coded language on to lenders and brokers? It sounds so official and acceptable coming from a AI designee.

Actually, I imagine you do something similar whenever you get a "stip."

So, if the language pleases you, feel free to use it.

 

[Lee Lansford]

Let me know your thoughts on the FAQ I posted...

.

I suspect that the presentations (both Naperville & Springfield) at the ICAP seminars by a member of the IL Appraisal Board specific to this very topic will be of interest to every licensed appraiser in Illinois.

Back to my question: does your communication of the "draft" to your client include an opinion of value (thus, communication of an appraisal)? This is a matter of some significance in this string of discussion.