July 2008 ASC Q&a- Wink Wink Comp Comp

[Workbox]

Once the MB gets a hold of this, all there are going to see is the word "YES". They are going to ride it like a teenager with a new Mustang Convertible.

 

[The Warrior Monk]

Once the MB gets a hold of this, all there are going to see is the word "YES". They are going to ride it like a teenager with a new Mustang Convertible.

Actually they won't, because they never cared nor were subject to USPAP in the first place, and can't be bothered to care about it now. In fact, if a MB showed they had a clue about USPAP, I might consider working for them...but I'm just speculating, of course, because I've never met such a MB.

Nothing has changed...contingent assignments were not allowed before the Q&A, and they are not allowed after the Q&A.

 

[DTB]

People are reading way to much into this and also misinterpreting was said. This issue of what is a "comp check" is sidestepped (which is has to be since there is no uniform definition) and the USPAP issues addressed.

Might have been a good time to develop their definition of a comp check, for starters. :icon_idea:

The answers provided give an insight as to how far away, from in the trenches appraising, they are. :blush:

Thanks for playing.

 

[Dutchman]

If "comp checks"/ were not a product, could the same thing be accomplished with a 3 stage prepaid assignment that would include research, inspection and analysis/reporting. If no indication of value were allowed to be transmitted to the appraiser and the client would have to give the go ahead for each stage of the assignment after recceiving a
intermediate report either written or oral. I believe that this would satisfy the " I don't want to waste my client's money" crowd and also satisfy the contingency requirements as the appraiser would not be privy to any value requirement. The appraisal order could be stopped at two points in the process and the bill would only be for the work performed up to that point. At the clients disgression, after the intital research has been done, the second report could be eliminated and the go ahead to finish the entire appraisal could be given.

I think I'll check with the state board and see if it will pass the USPAP smell test, because I think I could sell this to MB/LO and other clients

 

[Mike Phillips]

I dont see this as an ethics issue. I see it as a educational problem. Many appraisers simply donot understand what makes an appraisal an "appraisal".
Remember K-man ZAIOISTA made the outlandish statement that his so-called pre-appraisals were not appraisals simply because he did not include a signed certification. What a crock!

K-man I know of don't come 'round here no more. Maybe to lurk. I've also heard him say he tells his staff appraisers to ask the borrower what they think their property is worth.

 

[William K]

The problem as I see it is they were not careful enough in their wording. They used the terms "Comp check" and "Full" Appraisal, and did not define either.
As I stated earlier it would have been better if they presented the Q & A as:

Q: "Can an appraiser perform a comp check or the alike for a client or potential client?"

A: NO, an appraiser may only perform an appraisal in compliance with USPAP . The choice is the appraiser's as whether to not charge or charge whatever fee they want.

Comp Checks need to be regulated at the source and the TAF, ASB ,ASC don't regulate or govern those that order "Comp Checks".

A question to Appraisers in OHIO (where I understand there is a law against ordering Comp Checks and the alike), do you still receive Comp Checks? Has the law helped or not?

 

[Hamlet]

William,

I have only received one comp check request in the past year and that was recently for an FHA. Unfortunately, they got smart at the last minute and would not fax it over so I could turn them in. Oral reports should be illegal as well.

 

[Bill_FL]

William,

I have only received one comp check request in the past year and that was recently for an FHA. Unfortunately, they got smart at the last minute and would not fax it over so I could turn them in. Oral reports should be illegal as well.

How would you provide court testimony? Would that not be considered an oral report? Could it be considered an oral report?

 

[Fred]

Could all this comp check/second appraisal controversy be put to bed by the use of a properly defined staged assignment?

No. The key is in the definitions of assignment and assignment results. After you send the results of the first appraisal to the client the assignment is over. If, as AO-3 indicates, the same client wants further analysis of the same property, like another appraisal with a more diligent scope, it is "simply a new assignment."

 

[Fred]

The problem as I see it is they were not careful enough in their wording. They used the terms "Comp check" and "Full" Appraisal, and did not define either.

Putting them in quotes, as the ASB did, indicates to me they were using the same slang the people asking the questions use. It's the same slang thrown around on this forum.

USPAP's existing definitions already have it covered.
1. You can send raw data (whether called a comp check or not).
2. You can send the report of an appraisal (whether called a comp check or not).
3. You cannot agree to hit or hit a predetermined result.
No other information is necessary to answer the questions, but there are some who just don't like the answers.