Drive-by question

[Rich Heyn]

Yes, you can do a drive-by for whatever intended use on whatever form you deem appropriate.

Sorry, Ken, but with all due respect I have to disagree with that comment. The degree of inspection is part of the appraiser's scope of work decision. The appraiser is responsible for that decision. USPAP says that "an appraiser must not allow assignment conditions to limit the scope of work to such a degree that the assignment results are not credible in the context of the intended use."

 

[Craig Roberts]

Thanks Greg and Rich, I have a good supervisor, but I also like reading this message board and getting feedback as well. I haven’t been in this business very long (3 years as a trainee) and I still have quite a few questions.

I guess what’s throwing me off is that at the top of one of the old 2055 forms is a header saying that the appraisal is intended to be used in connection with a mortgage finance transaction only, is it possible to make a comment in the addendum that this comment should be ignored and that the report is to be used by the client to help in establishing market value for a possible purchase and is not to be used in connection with a mortgage loan decision?

However, after reading some of the comments on this thread I’m beginning to think that a drive-by would be inappropriate, considering the intended use of the client.

 

[KenRossman]

Sorry, Ken, but with all due respect I have to disagree with that comment. The degree of inspection is part of the appraiser's scope of work decision. The appraiser is responsible for that decision. USPAP says that "an appraiser must not allow assignment conditions to limit the scope of work to such a degree that the assignment results are not credible in the context of the intended use."

I don't disagree with your post, but I think you took my comment somewhat out of context... I wouldn't deem either the intended use or the reporting format to be "appropriate" if it did not produce credible results. My main point was to provide full disclosure.

 

[Rich Heyn]

I guess what’s throwing me off is that at the top of one of the old 2055 forms is a header saying that the appraisal is intended to be used in connection with a mortgage finance transaction only, is it possible to make a comment in the addendum that this comment should be ignored and that the report is to be used by the client to help in establishing market value for a possible purchase and is not to be used in connection with a mortgage loan decision?

Craig,
I don't want you to think that I'm picking on you by pointing out something here. This phenomenon constantly occurs on this forum and is happening today in several other threads.

Perhaps your focus is too much on the form and not enough on the process. Don't let the form drive the process. The appraisal process consists of about 10 step and only the last step involves the reporting option and format.

1. Identify the intended use of the appraiser’s opinions and conclusions.

2. Identify the client and any other intended users.

3. Identify the type and definition of value.

4. Identify the effective date of the appraiser’s opinions and conclusions.

5. Identify relevant property characteristics.

6. Identify assignment conditions such as hypothetical conditions, extraordinary assumptions, supplemental standards and jurisdictional exceptions.

7. Determine the appropriate scope of work.

8. Collect, verify and analyze all relevant information.

9. Reconcile the quality and quantity of the information analyzed.

10. Report assignment results.

Note that items 1-9 involve development. Item #10 is the only one that involves the form. Your original question relates to item #5.

My last comment is not directed at you, Craig. It's directed at the many times I've seen the question asked on this forum, expressed in one way or another; "What form do I appraise it on?" Answer: You don't appraise "on a form." Forms are for reporting. The appraisal has been completed before the assignment results are communicated.

 

[Otis Key]

Craig, since your concerned with the form, and that's been answered, why not do it as a narrative or use the newer AI form (of course that takes more time and you would need to add as much an expanded SOW there as you would with a narrative format)? Just a thought.

 

[Mike Kennedy]

RICHARD- any GPAR versions of 2055 (either or interior/exterior) in the near future might solve the problem.?? Just checked the pack list - don't see 1.

 

[Rich Heyn]

RICHARD- any GPAR versions of 2055 (either or interior/exterior) in the near future might solve the problem.?? Just checked the pack list - don't see 1.

Mike,
Just so folks know what we are talking about, the GPAR is ACI's General Purpose Appraisal Report offered along with AI Reports as alternate reporting formats. The GPAR differs from AI reports in that it has the "look and feel" of the URAR along with excellent datafile compatibility (for easy cloning to and from the URAR). The GPAR, however, does not have the built-in liability problems like the URAR and has a very "appraiser friendly" set of limiting conditions with no restrictions on additional assumptions, limiting conditions or anything else the appraiser wants to add.

That said, if you look at the bottom of the certification page, you will note three checkboxes that are used to identify the degree of property viewing. The options are "Interior and Exterior," "Exterior Only," and "Did not personally view." So the answer to your question is that there is no need for a 2055 style GPAR since the current GPAR can be used for exterior only or, for that matter, even a "desktop."

FYI, Mike, I'll be in Florida the last week of this month to clean up a few GPAR odds and ends and finish up the 2-4 family version (condo is done). I know you have used the GPAR so if you have any suggestions for improvements, send me a PM or e-mail me at richheyn@cs.com