First Exposure Draft - Identifying Comparable Properties

[Lee Lansford]

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

Though what the ASB has offered is not a proposed USPAP standard, an appraiser whose work-product is subject to the USPAP must, of course, comply with the USPAP.

Or, am I missing another meaning to your statement?

 

[Carnivore]

Lee, When it comes to State Appraisal Boards, anything written by the ASB or APB is held in high regard as an authority.

I am subject to office records(appraisal report inspection) at any time by the NCAB. I can not withold these report from them if they choose to review them.

My client needs sales comparison report for internal uses only, and I am prohibited from reavealing anything in the report outside of my clients organization.

The issue is this is a unconventional sales comparison approach. I cant meet the AO best practices above requirements for comparable selection.

I can PM or Telephone you if you would like to know greater details. I may be overly sensitive to this APB exposure draft. I may actually not have an issue.

 

[George Hatch]

Advisory is advisory. USPAP itself doesn't become significant except by choice, agreement or law/regulation. If your state passes a regulation that requires adherence to the APBs references or if your client requests adherence then you can act accordingly.

The name of the game is understanding the rules that are in play.

 

[Carnivore]

I hear ya George. Thank you

Reading the engagement letter does give me the wiggle room I need to argue with a state board investigator if that were to happen. It revolves around the purpose of the report.

This client is not going to turn anyone in to the state board either. They just terminate you for poor professional performance!

Thinking of what Terrel said early on, you can bet your in trounble if you have not documented each step.

 

[Lee Lansford]

...

The issue is this is a unconventional sales comparison approach. I cant meet the AO best practices above requirements for comparable selection.

...

What is an "unconventional sales comparison approach"?

 

[Terrel L. Shields]

I don't understand how the traditional criteria for "market value" can be met when supply is manipulated

good point

Whatever a state appraisal board deems them to be

exactly

We(field of appraising) have decades of published appraisal techniques and precedures.
Why is this so hard to recognize today!

I think you know...
A - appraisers were often never taught anything from "decades ago"
B - Their textbook is FHA and Fannie mae. It is about filling out forms
C - USPAP, TAF, and the eduation providers are all too happy to stick to current trends and topics and never look back at the fundamentals of economics ...proof?
How many here knows who Marshall was? Von Thunen? Babcock? Ratcliff? Graaskamp?
And how many of those who do know have ever read a single thing any of them wrote in its entirety?
And I venture the average forumite is far more advanced than the average appraiser on the street.

it will absolutley require more time(you have to document your efforts, successful or not in acquiring the verifications)

Yes, we have NO bananas today. Other statements you might consider...

I did not have coffee with Ben Bernanke today
I did not disclose anything that I did not know
I did not conduct a house to house survey of the neighborhood within a one mile radius
I did not have sex with that woman... oops.. off topic
I did not measure the thickness of the concrete under the sidewalk
I did not dig up the septic system to get a sample of the effluent
I did not send samples of the carpet to a forensic laboratory to determine if any blood splatters were present from an unsolved murder
---
you get the picture.

 

[Carnivore]

What is an "unconventional sales comparison approach"?

The use of short sales and short sale listings.

 

[PropertyEconomics]

What I find interesting is the comment "Before a property can be considered comparable ....". This would suggest or imply if not all of the "factors" listed are present the property is not a comparable which is absolutely incorrect. Adjustments based upon market analysis can be made for any of the factors to a "comparable property" which sold under non traditional market conditions ... I think it is poorly worded, and while I understand the intent, it does not fully express what actually occurs in the market place.

 

[Carnivore]

What I find interesting is the comment "Before a property can be considered comparable ....". This would suggest or imply if not all of the "factors" listed are present the property is not a comparable which is absolutely incorrect. Adjustments based upon market analysis can be made for any of the factors to a "comparable property" which sold under non traditional market conditions ... I think it is poorly worded, and while I understand the intent, it does not fully express what actually occurs in the market place.

I have hit the imaginary "LIKE" button for your comment.

 

[JSmith43]

Recently the MN SC struck down a law suit over school curriculum. One of the items thereby allowed to remain in school curriculum is the continuation of "teaching" that the USA is a democracy rather than a republic.

Imagine that? That's worse than stating that the cost approach tends to set the upper limit of value (without substantial clarification)

I don't see anything that stinks to high heaven yet with respect to AF or its APB, but just wait until academic fatwas are eventually issued. Then the yearning for intellectual freedom may strike home for some that are comfortable with the current paradigm which is starting to sprout wings.