More On Free Comp Checks

[Couch Potato]

So true.

I am getting further and further convinced that many posters here are not playing by the ethical standards of USPAP. Some talk the talk but practice things differently in their "real world" offices.

Since you are known by the company you keep, I like to know who I am dealing with, even as a member of an online forum. A phone call or two, a visit to a company website is all it takes for a little research. It's interesting to note that several of the now regular posters here provide free comp checks and promote contingent fee assignments.

Certified appraisers should know better. It's not as if they have never taken a USPAP class or an update class. Frankly, I am tired of preaching. This forum is becoming more entertaining and less educational every day.

It only takes a few clicks of a mouse to check on a web site. It is how I keep track of what my competition is doing. It is also how to give proper weight to any advise received over the Internet. Not everyone has a web site to check, but I decided years ago to always keep my link there so that others can know me by more than just my posts. It would be nice if everyone had an active link in there profile.

As for entertainment, I changed my tag line many months ago to reflect that reality. (Want to know my stance on "comp checks" and value guarantees, read my web site.)

 

[Hamlet]

I agree, in this market lookups are necessary if done correctly. Most appraisers say it's an Ethics violation, and the way they do it...it prob would be. I always give a large range and make clear that it is based on info gathered and nothing is final until the inspection has been done. This is not an Ethics violation as long as it is done properly. I have discussed it with instructors and with board members, and while it is discouraged because appraisers aren't trained to do it, they say that it does not break any rules if done correctly.

My bold. I'm not really sure what you mean by "based on info gathered". If you are setting the parameters for the search, that is an appraisal and unless you comply with S1/S2 as stated you are violating USPAP.

 

[Couch Potato]

If

I call you for a 'comp check' and you give it to me, then I walk into your office 5 minutes later asking for the workfile, what will you be able to hand to me right then and there?????

Pam, if he gave an oral report, he is allowed "reasonable time" to complete the summary report of the oral report given. It is not required to exist prior giving the oral report.:new_all_coholic:

You should show up the next week and see what is there in the file.

 

[Colleague]

Here's the drill. No comp check = no order.

 

[LJFJR]

comp checks

Don't do comp checks.

 

[Steve Owen]

Here's the drill. No comp check = no order.

Here's the real deal drill: Comp Check = Pre-determined Value!

 

[Couch Potato]

Here's the drill. No comp check = no order.

For many potential clients, this is a true statement. The challenge is to provide such service in an ethical manner or to find enough clients that do not require it to survive.

For those in the "predetermined value" worry wort club, there is no prohibition in USPAP of appraising a property which one has already appraised. There are certainly ways in which a "comp check" could be wrong, but it is not always wrong. The important thing is for the appraiser to understand the potential problems and head them off before they occur.

As of a few days ago, I will now offer a list of sales to my clients. I am confident my methods will withstand any level of scrutiny that may occur.

 

[LJFJR]

Comp checks

In my short career (15) years, it has been my experience that providing comp checks serves no usefull purpose other than giving the requester a free appraisal. Most of my request come from mortgage brokers that say the deal is so close that they need a comp check that will produce a hard value between $2,000 to $5,000, to me that is an appraisal. Without doing an inspection of the subject property nobody can come up with that kind of number and if I go out to the subject property it is an appraisal. This is what I tell them, sometimes I get the order, most times I do not. In eitheir case I really don't care as long as I do my job correctly I can sleep at night.

 

[Webbed Feet]

Pam, if he gave an oral report, he is allowed "reasonable time" to complete the summary report of the oral report given. It is not required to exist prior giving the oral report.:new_all_coholic:

You should show up the next week and see what is there in the file.

Mr. Spud,

Ahhhhhh Your wrong on this one in that Ms. Crowley said the "Work File" and you came back with "Report." She is correct! The work file has to be 100% complete regarding Standard One before that oral report can be delivered.

The next aspect is you know, she knows, I know, and everybody knows that appraisers providing oral values for a "comp search" request are not complying with USPAP standards for oral reporting. Just "The value is (or range is) $XX,zzz" does not comply.

Webbed.

 

[Couch Potato]

Mr. Spud,

Ahhhhhh Your wrong on this one in that Ms. Crowley said the "Work File" and you came back with "Report." She is correct! The work file has to be 100% complete regarding Standard One before that oral report can be delivered.

The next aspect is you know, she knows, I know, and everybody knows that appraisers providing oral values for a "comp search" request are not complying with USPAP standards for oral reporting. Just "The value is (or range is) $XX,zzz" does not comply.

Webbed.

I respectfully disagree. The written summary of the oral report is an essential element of the workfile for an oral report. I agree the data required for Standard One would need to be there, but the workfile needs more than that to be complete.

(Yes, we all know the file will never be complete.)