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Is a rent survey an appraisal?

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Suzanne K Hansen

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Aug 31, 2002
I've been asked to do just a rent survey on a house. I'm a trainee and I'd like to do it but it is a long way away and I'm pretty sure my Mentor won't want to do it. Can I do this legally as a trainee without my mentor? Is it considered an appraisal? If I can do it do I include it on my work log? And How much would I charg for this?
 

Terrel L. Shields

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May 2, 2002
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Certified General Appraiser
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Arkansas
A rent survey is not an appraisal. It is consulting. As long as you are not drawing a conclusion of value for a subject, you are not appraising and are not bound by Std. 1 and 2.

As a consulting assignment your appraisal lic. is not an issue, and I would not evoke it unless your state requires same. It might be if other Real Estate services may be covered by Real Estate law not appraisal laws.

ASB tried to get rid of Std. 4, 5 a couple of years ago, and should have. It has no more to do with appraising than bullfighting has to do with the Dept. of Agriculture.

It likely won't count on your experience log. Charge a fee per hour with some allowance for clerical work at a lower rate (imho). I have a two tier system. Clerical and research is $30/hr. Analysis and Report writing at $60/hr. With good access to good MLS data, or even by phone surveying, you should have a whole bunch of data in one hour. Locally, I know a couple of Realtors who basically sell little or no real estate but are property managers. They have tons of data. Find one. Write the report as a narrative using Std. 5 as a guide.

ter
 

Steve Owen

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Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
Suzzane, Terrel's right, if it doesn't value the property it is not an appraisal. However, be careful before you get in too deep. While it is not an appraisal, it might be considered to be part of "appraisal practice" and as such, the client might require a licensed or certified appraiser's seal. If your mentor won't back you up, you could get stuck.
 

Paul Ness MAI

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Jan 14, 2002
Professional Status
Certified General Appraiser
State
Pennsylvania
IMHO, if you do not estimate a conclusion of market rent for a specific property you are not bound by USPAP. Anybody can collect and compile market data.
 

Steve Owen

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Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
I agree, Paul. But, she started, with "rent survey on a house...." To me, that implies estimating the rent for a specific house.
 

Restrain

Elite Member
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Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
While it is a "specific" house, this is still essentially a data-gathering assignment. You will indicate the probable rental range for the subject, not an estimate of value.

Roger
 

Paul Ness MAI

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Jan 14, 2002
Professional Status
Certified General Appraiser
State
Pennsylvania
I think she crosses the line if she provides a conclusion of market rent, even if it is a range.
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Paul,

With all due respect .. isn't an appraisal defined by words such as 'an opinion of value of real estate?' How does a conclusion as to market rent become an opinion of value of real estate?
 

Paul Ness MAI

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Joined
Jan 14, 2002
Professional Status
Certified General Appraiser
State
Pennsylvania
I don't have a strong opinion on this one way or the other. This is quite honestly the first time I've considered this kind of situation. But the line I am talking about is whether or not compliance with USPAP is required. If the appraiser estimates a market rent conclusion for the subject from the data which the client depends on for whatever reason, then it sounds like consulting work. I guess the question is what constitutes consulting work that would require compliance with USPAP? It certainly isn't simple data collection, but would it include a report (such as a market rent study or feasibility analysis) that makes conclusions from the data?
 
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