Land appraisal revision

[Mark K]

Okay... but try reading AO-23 and FAQ-192.

I would be happy to play along, however, my USPAP copies are on the hard drive of a computer that is in the back of a storage closet. Maybe you can save us the time and explain exactly how those two references preclude performing the appraisal in this manner.

 

[OSU Beavers]

After a week long of BS, the credit union ended up just using my original appraisal with the full value of the well included and the purchase loan closed.

The AMC really p!ssed me off with all their "You must do this, the client is always right".

 

[jay trotta]

After a week long of BS, the credit union ended up just using my original appraisal with the full value of the well included and the purchase loan closed.

The AMC really p!ssed me off with all their "You must do this, the client is always right".

USPAP Standards 1 and 2 establish the requirements for the development and reporting of real property appraisals, ensuring ethical and professional practices in the appraisal industry.

Standard​

• • Purpose: Standard 1 outlines the requirements for appraisers in developing a real property appraisal. It emphasizes the need for appraisers to gather relevant data, analyze it, and apply appropriate methodologies to arrive at a credible opinion of value.
• Key Requirements: Appraisers must ensure that their analyses, opinions, and conclusions are well-supported and based on sufficient and relevant information. This includes understanding the property being appraised, the market conditions, and the applicable valuation approaches.
  
  1
• 
  
  
  1 Source

Standard​

• Purpose: Standard 2 focuses on the requirements for reporting the results of an appraisal. It ensures that the appraisal report is clear, accurate, and not misleading to intended users.
• Key Requirements: The report must contain sufficient information to enable users to understand the appraisal properly. It should clearly set forth the appraisal in a manner that is not misleading and must include all relevant details that support the appraiser's conclusions. This includes the scope of work, the data analyzed, and the reasoning behind the value opinion.
  

IMO the standards are what we follow, unless those who question your work are willing to signature the report as the Supervisor, Glad you stuck to your thoughts, the end result provides clarity on reporting the facts and not misleading the reader.

 

[sputnam]

I would be happy to play along, however, my USPAP copies are on the hard drive of a computer that is in the back of a storage closet. Maybe you can save us the time and explain exactly how those two references preclude performing the appraisal in this manner.

AO-23 is about performing partial appraisals. FAQ-192 specifically says that a hypothetical condition is not needed in partial appraisals.

If you are an active appraiser... you danged well should have a copy of USPAP at your fingertips. I'm an AQB Certified USPAP instructor and I still look things up from time to time.

 

[sputnam]

After a week long of BS, the credit union ended up just using my original appraisal with the full value of the well included and the purchase loan closed.

The AMC really p!ssed me off with all their "You must do this, the client is always right".

The Client IS always right... about what they want. It's our job to give them what they want (and collect an appropriate fee) when what they ask for doesn't require us to violate USPAP, other applicable regulations, and/or good appraisal practice. They are not appraisers. They are not responsible for it if you do shoddy work or don't comply with a standard or regulation that applies to appraisers.

For me, the caveat is... they have to tell me what they want... BEFORE I accept the assignment. The fee that I agree to will be based on their requirements, the nature of the property, and how long I estimate it will take me to do the work. If they don't like my fee, there is a skippy or two in the same area code.

 

[Mark K]

If you are an active appraiser... you danged well should have a copy of USPAP at your fingertips. I'm an AQB Certified USPAP instructor and I still look things up from time to time.

I am an active appraiser, just not a licensed anymore. I let my license expire two years ago and tried to retire but the local courts keep making me offers I can't refuse. They continue to appoint me (I don't need a license to be appointed) and the local judges don't care much about USPAP, they've essentially said so in several trials in which I've testified. They've seen too many landowner-biased appraisal reports, often completed by MAI hired guns/prostitutes hired by the landowner's attorneys, that purport to follow USPAP so they, and the juries, are more interested in credibility and competence.

So, as a non-licensed appraiser, I don't really care much about FAQ's or AO's and don't keep USPAP on the pedestal where I was once required to keep it.

But to the question at hand...I know that USPAP and its FAQ/AO offspring allow an appraisal of a segment without using a HC, the question is does it prohibit it? I don't think so. I'm thinking it simply allows an appraiser to complete a report for the secondary market (the real boss of USPAP) without using a HC.

 

[OSU Beavers]

The Client IS always right... about what they want. It's our job to give them what they want (and collect an appropriate fee) when what they ask for doesn't require us to violate USPAP, other applicable regulations, and/or good appraisal practice. They are not appraisers. They are not responsible for it if you do shoddy work or don't comply with a standard or regulation that applies to appraisers.

For me, the caveat is... they have to tell me what they want... BEFORE I accept the assignment. The fee that I agree to will be based on their requirements, the nature of the property, and how long I estimate it will take me to do the work. If they don't like my fee, there is a skippy or two in the same area code.

That is the thing, they stated "value the land without an improvements" which to me means no structures. To them that included the well, even though there are acre lots listed and selling both with and without a well for a $30,000 difference.

If the underwriter wants to adjust my value after delivery, that is their business. Leave me out of it.

 

[Tom4value]

That is the thing, they stated "value the land without an improvements" which to me means no structures. To them that included the well, even though there are acre lots listed and selling both with and without a well for a $30,000 difference.

If the underwriter wants to adjust my value after delivery, that is their business. Leave me out of it.

Sounds to me that the issue was the underwriter not knowing specifically what they wanted and the AMC gumming up the works.

AMCs were originally designed to facilitate good appraisal practice between the appraiser and the client. The AMC was in charge of knowing what “problem to be solved” and guiding both the lender and the appraiser. In practice, they were just “yes men” for the lender and the appraiser be damned because the lender gave them money and the appraisers took it. Since I don’t work with AMCs that work in the classic sense, I can contact the underwriter and help gauge what they want.

Anyway, glad it finally worked out for you.

 

[sputnam]

I am an active appraiser, just not a licensed anymore. I let my license expire two years ago and tried to retire but the local courts keep making me offers I can't refuse. They continue to appoint me (I don't need a license to be appointed) and the local judges don't care much about USPAP, they've essentially said so in several trials in which I've testified. They've seen too many landowner-biased appraisal reports, often completed by MAI hired guns/prostitutes hired by the landowner's attorneys, that purport to follow USPAP so they, and the juries, are more interested in credibility and competence.

So, as a non-licensed appraiser, I don't really care much about FAQ's or AO's and don't keep USPAP on the pedestal where I was once required to keep it.

But to the question at hand...I know that USPAP and its FAQ/AO offspring allow an appraisal of a segment without using a HC, the question is does it prohibit it? I don't think so. I'm thinking it simply allows an appraiser to complete a report for the secondary market (the real boss of USPAP) without using a HC.

So... In Indiana, you don't have to hold appraiser credentials to do appraisals for a fee?

No, USPAP doesn't prohibit it... however, it is completely unnecessary in that situation and could potentially be misleading.

 

[Mark K]

So... In Indiana, you don't have to hold appraiser credentials to do appraisals for a fee?

Requirements for court-appointed appraisers for eminent domain cases: 3 appraisers, 2 of which have to be licensed, this includes 2 freeholders in the county and the third appraiser living no more than 50 miles from the subject who has to be licensed. I'm the unlicensed, county freeholder but I generally have more experience in R/W work than the two licensed appointees and the judges know that so I'm often summoned. It's a great gig. We charge hourly at about the same rates as the attorneys.

No, USPAP doesn't prohibit it... however, it is completely unnecessary in that situation and could potentially be misleading.

Any report prepared incorrectly can be misleading.