If not comp checks.then what?

[TXCBoy36]

I will look....

JC

 

[Nathan Slaman]

Sorry I am not done being an idiot. So if a realtor can give my lender his opinion of value on my home "CMA" why can't an appraiser that has a realtor license do it to not acting as an appraiser?

 

[TXCBoy36]

If the Realtor/Appraiser gives anything relating to an estimate of value for a particular property/address.....then it is an appraisal, because of his professional expertise in establishing values. An agent is not considered to have professional expertise in establishing market value. I would think that it would be hard for an appraiser to depart from being considered an appraiser since establishing a market range directly falls into the area of an appraisal job area.

Would not recomend establishing a value for any particular address. Will always be construed as an estimate of value when it is attached to particular address.

JC

 

[hastalavista]

Sorry I am not done being an idiot. So if a realtor can give my lender his opinion of value on my home "CMA" why can't an appraiser that has a realtor license do it to not acting as an appraiser?

That's a multi-hat question (are you wearing the appraiser or Realtor hat?). There are plenty of dual-skilled persons on this forum that hold multiple licenses (broker, appraiser, loan agent).

The situation (IMNSHO) boils down to this: Are you acting as a Realtor or appraiser, and is there an expectation that you are acting as a Realtor or Appraiser?

If you are selling someone's house, I think it is easy to distinguish which license you are operating under.
If you are providing a CMA to a prospective seller, it gets a little dicey, but as long as you make sure there is no misunderstanding on how you are acting and what is expected of your actions, I think you are Ok.

However, if one starts providing valuations to lenders where the person providing the valuation is not engaged as a listing or selling agent, then the appraiser hat would appear to be the one being worn, no?

Sure- you could disclose your dual license status and clearly state that you are acting as a real estate agent and not an appraiser. That seems like a lot to worry about from my perspective, so I don't know if it is worth it or not as far as the effort vs. the potential liability is concerned (I am just a lowly appraiser without any other licensing credentials!). :new_smile-l:

 

[BOBBYGINE]

Zillow

So we appraisers can't say comp search, but ZILLOW can say the c "word"?

Its semantic stupidity, this is a common sense issue that need to be fixed in coming AO's.

 

[Bama Bayou]

Denis,

That is the best explanation this two hatter has read on this forum from a one hatter about the two hatter "separation of duties" experience.

In AL the things you have said are correct but a bit more complicated. Alabama is a mandatory state if compensation is involved. If you charge a fee for a value opinion, you must be an appraiser. Agents may only provide value opinions in the normal course of business listing, selling, leasing, etc. They cannot call it an appraisal unless they are certified appraisers.

 

[Charles Knutson]

Nathan --

Anytime an appraiser gives an opinion of value, whether it is a range of value or a hard value, USPAP considers that to be an appraisal -- which means the appraiser is required to maintain a workfile.

So if a realtor can give my lender his opinion of value on my home "CMA" why can't an appraiser that has a realtor license do it to not acting as an appraiser?

Can an appraiser/broker take off their appraiser hat, and do a non USPAP compliant CMA? Does USPAP super glue the appraiser hat to our heads, so we can never take it off? Good question.

In a Certified Residential class 4 years ago, one of the instructors offered the opinion that if an appraiser responds to a comp request by supplying the sold data for a given neighborhood and time period without interpreting the data, that does not constitute an appraisal -- and does not require maintaining a workfile. This instructor served on the Colorado BOREA for many years, and is considered one of the most knowledgeable appraisers in the state.

Yesterday an LO was referred by one of my best clients -- this was my response:

According to the public records, the subject property is a 1939 sf ranch, with a full unfinished basement and a 3 car garage. It was purchased from the builder in July 2006 for $313k.

The two most recent MLS comps on this street sold for $336k net in May, and $316k net in July. These are both sightly larger ranches, but otherwise seem to be comparable. There are other sales on the street, but they are larger two stories, and not comparable.

There are two under contract ranch homes in the sub area from a different builder, with list prices of $318k and $324k.

This is newer subdivision, and the data is very sketchy -- the LO ordered a COD appraisal, without any preconditions.

Comp checks are permitted by USPAP, if you treat them as an appraisal and maintain a workfile.

It is a business decision as to whether an appraiser chooses to offer them, and whether they will be offered for free.

 

[hastalavista]

In AL the things you have said are correct but a bit more complicated. Alabama is a mandatory state if compensation is involved. If you charge a fee for a value opinion, you must be an appraiser. Agents may only provide value opinions in the normal course of business listing, selling, leasing, etc. They cannot call it an appraisal unless they are certified appraisers.

Samuel-

Excellent point (which I did not consider) regarding local jurisdictions and their own licensing requirements!

 

[Bama Bayou]

Some lenders have made a business decision to not allow their LO's to ask for comp checks and don't want to deal with appraisers who do. More and more of them all the time.

 

[Bob Ipock]

Drain the gene pool. No more reproducing from the current stock.

Start the whole licensing process over from scratch. Minimum IQ of 125 required. B+ or higher on a common sense exam. Ability to ask questions in a coherent manner and to SEARCH for answers to questions involving USPAP, state appraisal laws and appraisal board rules and KNOW the difference between the three.


It is amazing how little can be learned from sitting thru 75 to 300+ hours of appraisal education including USPAP and have people know so little.