Geographic Competence

[Don Clark]

I understand this is to try and keep the less reputable in line, but would like to see a more clear cut set of guidelines maybe?

An appraisers assertion of competence is subjective, and by what I'm interpreting as the USPAP definition of competence, hard to prove/disprove.

Maybe you could suggest that to the ASB. They are responsible for clarifying USPAP either by a FAQ or an Advisory Opinion.

 

[Elliott]

Some appraiser's have a Nietzsche's Superman complex, they
probably arent' very good at appraising and compensate by
puffing the territory they mark. I, on the other hand, have
decreased my area of competency. It use to be 3 counties,
now its only one, I use to do commercial and residential, and
now I only do residential.

 

[CURT VAN HOOSER]

Iwould agree with Truett. I did a review of an appraisal on a property here in Bakersfield last week. The original appraiser was from 135 miles away. The people had bought the house in June of 2007 for $362,000 and were refinancing it in October. Refi appraisal valued the house at $440,000. Original report stated the "increase in property value best reflects current marekt conditions". Neighborhood market conditions section stated Market conditions have stabilized in the southern california housing market. A detailed study of the neighborhood shows prices in that neighborhood have declined 12% since the first of the year. Either an appraiser who didn't know what he was doing or an appraisal done by a trainee and signed off by the supervisor. Who ever did that appraisal had no idea what so ever what the market conditions are in Bakersfield. This is a big part of the problem with this profession.

I have to disagree with you. The person who wrote and/or signed the report didn't care what the market conditions were. They just hit the number...

 

[Richard Carlsen]

The furtherest I've ever done an appraisal from my office is 135 miles. It was a special request by a good client that required an overnight stay. Funny thing was, it was a $26,000 sale in da UP don'cha know, inside of a city with a fair number of sales, so I took it. After doing my inspection, it took me about 31/2 hours of interviews and talking with brokers and bankers in the city to gain what I considered sufficient geographic competence to complete the report.