First Exposure Draft - Identifying Comparable Properties

[Lee Lansford]

Perhaps this is in response to the hue and cry from the NAR et al that REOs etc are not to be used as comparables, never ever?

No.

Seriously.

 

[Stone]

If in doubt, spend some time here at the AF. Just kiddin'...but not totally.

The general concepts that are "debated" here from time to time are somewhat amazing. Also, they are very informative. My favorite one recently (and repeatedly) has been "is this an arms-length transaction?"

 

[Papoua Jose]

Hmmm.. Please tell me they are not listening to the NAR. Good Grief we are doomed if they are. I realize they were founded in 1908, but they are advocates for themselves, not the property owner.

We(field of appraising) have decades of published appraisal techniques and precedures.

Why is this so hard to recognize today!

Because we don't have the capacity to mega lobby the politicians.

 

[George Hatch]

The whole purpose of the APB is to assemble the external reference for accepted methods and techniques. Once formalized, they become defendable by reference which is something our profession currently lacks. A reviewer has no way of saying some wierdo methodology is unacceptable - it just degrades into a difference of opinion because neither side has a uniform reference they can cite in their defense.

 

[JSmith43]

The whole purpose of the APB is to assemble the external reference for accepted methods and techniques. Once formalized, they become defendable by reference which is something our profession currently lacks. A reviewer has no way of saying some wierdo methodology is unacceptable - it just degrades into a difference of opinion because neither side has a uniform reference they can cite in their defense.

The AI's Appraisal of Real Estate 13th is a pretty good reference source.

ASA & NAIFA have published work as well. APB is the new kid, their work is less polished so far, but they will probably get better.

Academic freedom and relevance of the AI, NAIFA & ASA are going to take quite a hit if APB becomes the Vatican for the new religion of appraisal orthodoxy.

I include NAIFA & ASA even though they are still members of the AF. It all becomes committee work, void of competition, insulated to a degree from academic criticism, since who else has the direct political roots?

Imagine one government school of economic theory being in charge where everyone has to go with the flow from Paul Krugman's printed words.:new_all_coholic:

 

[George Hatch]

The AIs book is a good book and no doubt revered by many, but there are plenty of appraisers who refuse to cede any authority whatsoever to the AI or any of the other clubs. It's the same reason TAF was formed to stand alone even if they did largely base USPAP off the AIs Code of Ethics.

 

[JSmith43]

but there are plenty of appraisers who refuse to cede any authority whatsoever to the AI or any of the other clubs

I hate to cede academic endeavors to the government club

Basically, the best practices should "win", which may or may not be the result, when one particular government blessed entity is in charge. The best practices may not develop outside of government guidance, so to speak, but I know there would be a better chance.

 

[Meandering]

39 Sales information: Before a property can be considered a comparable, the appraiser must
confirm the type of sale transaction. In other words, did the sale occur under conditions
40 commensurate with the type and definition of value under consideration? In the case of market
41 value, the following factors must be considered:


Considered everything in lines 42-53, the property is still comparable, so we said all this to say.....Did you do your job?

Not sure I'm comfortable with

54 The appraiser’s experience and skill in consistently observing the market coupled with ongoing
55 interviews with buyers, sellers, and brokers as to what factors drive local values assist in
56 providing credible value indications by comparison.

Being used to determine if a particular sale is a comp or not. That's like saying only those with the highest skill sets can determine what is or is not comparable. Or does it mean that appraisers who are also salespeople who are constantly interviewing buyers and sellers and brokers can provide "better" comparables?

I think they are mixing two concepts, maybe to make some one happy.

.

 

[Carnivore]

One of the big criticisms of the appraisal profession is that although we have professional standards governing conduct we haven't had a best practices reference for the different applications. What exactly are the "recognized methods and techniques"?

That's the gap the APB is aimed at.

Developing non-Standards courses in direct competition with the professional orgs - as well as the private CE providers - is going to cause some conflicts.

Maybe they should just plagerize the AI 13th addition! Certainly would be easier and quicker. Better yet and simpler, include the Current AI "The Appraisal of Real Estate" in Pre-licensing courses. I have had one on my desk since I got licensed in 1993.

Today comparable selection, tomorrow site inspection check list. Is this just the beginning of simplifying the predominate end users checklist charly workload.

Sarcastically; This is like inventing the wheel, 20 years after its first use.

 

[Carnivore]

Can client specific instructions and assignment conditions overide or create an exception to this proposed USPAP standard?