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Limited Appraisal

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Diego Lopez

Member
Joined
Sep 11, 2006
Professional Status
Certified Residential Appraiser
State
Florida
I know USPAP removed the limited appraisal option a number if years back. I have a debate with a colleage regarding the USPAP compliance and the client requesting the scope of work to be limited only to the sales comparison approach. Is this aceptable with USPAP, even if other approaches are valid and pursued by the market? For example, say the market values a property via the sales and income approach. Is it acceptable to, at the clients request to limit the scope to only the sales approach, provided that it produces credible results?
What say you? Thanks!!!!
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Intended use/intended user?
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
No. Scope of work is determined by the appraiser. However, if the ca and ia are not necessary to arrive at a value, then the sa could stand alone.
 

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
Is it acceptable to, at the clients request to limit the scope to only the sales approach, provided that it produces credible results?
What say you? Thanks!!!!

As phrased, the answer to this question is, yes, it is acceptable - because of that last phrase, "...provided that it produces credible results"

The client may always request a scope of work, but it is up to the appraiser to determine if that SOW will produce credible results. If it will, then there is no issue. If it will not, then the appraiser must expand the SOW or withdraw from the assignment.

Misunderstanding of this concept is exhibited in many URAR reports that state something along the lines of, "The cost approach was not completed because it is not required by Fannie Mae." That is NOT a valid reason for omitting the cost approach. :)
 
D

Deleted member 134708

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I've seen others use the phrase "The Cost and Income Approaches were considered and while applicable for this assignment are not necessary for credible assignment results."

Something along those lines training under my old SRA. You have to state why didn't use, but for sure can only use SA.
 
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Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
It is not in fact a "Limited Appraisal" as the term formerly meant. USPAP does allow you to call a report by various names as long as it is called an "Appraisal Report".
 
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