July 2008 ASC Q&a- Wink Wink Comp Comp

[Ken B]

So it's okay to provide desktop appraisals to "A" clients with no charge, but "B" clients have to get the works and pay top dollar? Did someone say something about situational ethics? Now we need the borrower's credit report before we can determine if it is acceptable to provide a "comp check?"

 

[Fred]

The comp check disgrace isn’t about desk top assignments for A paper clients; it’s about high volume for B & C products. If these “clients” are to be remain satisfied, the high end of the range must be reached and each assignment stage must be satisfactory. If this is not the case, why is most of Orange County a prospect for a short sale? I’d like stick around all day and joust, but unfortunately I’m not in an ivory tower. I have to go inspect a 1997 Oakwood doublewide that died 8 months ago. An impressive assignment sure, but they didn’t demand a comp check before sending the order.

So, in other words, the comp check is not the proximate cause of the disgrace.

Seems like a classic application of fallacy of false cause - unethical appraisers all attended kindergarten, so ban kindergarten.

 

[PropertyEconomics]

Mr Santora,
You are beating your head against the wall. You have shown the "comp check" is permissible by USPAP, you have defended the wording of the answer from the ASB, you have defended your positions very well, yet the masses dont hear and will never hear your words of reality.
It remains as simple as, IF you dont want to do desktop comp checks dont do them. If one wishes to do them, the masses will continue to berate them for doing so, and call them unethical appraisers. How ethical is it for appraisers with no power to pass judgement on anothers ethics? Isnt that what the state boards are for?
The simple fact of the matter is there are unethical people in every aspect of life and they tend to congregate together. To that end, dont attend their meetings and dont do business with them if you question their ethics. Seems like a simple enough answer to me and yet I am just as positive the "ban comp check" chorus shall play on.

 

[DTB]

Prove it .. beyond a reasonable doubt!!


.

I don't think your state board has to meet that lofty threshold.

 

[Hamlet]

Banning appraisers from performing comp checks does nothing but penalize the appraiser. It does nothing to stop or punish the source. Those that want to hit a target will continue to seek out appraisers who will give it to them, while the ethical appraisers will continue as they always have, to just say NO.

It is the request for target hitting that needs to be outlawed on a Federal level.

There is a legitimate need to know IF there is value there, but no legitimate need to DEMAND that value is there.

 

[PropertyEconomics]

I don't think your state board has to meet that lofty threshold.

Mr Kennedy doesnt have the power my board does. So there are different rules for those on the forum that wish to pass judgement on others. Simple as that.

 

[Ken B]

This backlash against the "fundamentalist" appraiser movement is quite interesting. I guess enough people finally got tired of the whips, brimstone, and holier-than-thou routine and finally realized it's okay to do their job.

 

[DTB]

Mr Kennedy doesnt have the power my board does. So there are different rules for those on the forum that wish to pass judgement on others. Simple as that.

Since Mr. Kennedy is not the government, he does not aspire to threshold either. His threshold would be quite low and doesn't have to protect your rights at all.

 

[PropertyEconomics]

Since Mr. Kennedy is not the government, he does not aspire to threshold either. His threshold would be quite low and doesn't have to protect your rights at all.

I havent asked him to protect my anything. I can read the question and the answer and I understand what it means. I fear he is the one that has issues with what it says which is contrary to that which he wished it said.

But, none the less, thank you for answering for him.

 

[Mike Kennedy]

Prove it .. beyond a reasonable doubt!!

I am in agreement with you that comp checks should not be done, but that is a personal business decision, its not against USPAP and its not against the law. Is there a question regarding the second assignment? You bet. Thats a main reason I dont do them (well one of the reasons anyway). As far as proving the second value was predicated upon the first, I personally think it would be very very difficult to prove, especially if the first report states that the value could change upon full and complete inspection of the property and preparation of a full report.

I dont disagree with your thoughts, but that doesnt mean they are correct in the "legal" sense, nor does it mean that a comp check and second report cant be done in compliance with USPAP. That is what I believe the ASB has stated.

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