More On Free Comp Checks

[Pamela Crowley (Florida)]

That is a written appraisal report and delivered without the USPAP complaint signed certifications.

 

[JSmith43]

Expressv: Use the search function and go to comp checks. Pay particular attention to posts by Denis, Bill Potts, and others that do their best to bring practical solutions to the table.

Practical solutions at the ready by a critical mass of appraisers will garner respect for the profession and, perhaps, better behavior on the part of the occasional comp check shopper.

There may be no salvation for a serial comp check requester, but it's illegal to kill them.

 

[expressv]

If we have a signed engagment, order form and all of the documents to support the statement "the estimate appears high" (which I'm assuming you are referring to as the appraisal) are we in violation of USPAP?

 

[expressv]

Mentor, I appreciate the help and insight. We don't usually have to even do comp checks, but like you said there's always someone looking for a free favor. Our regulars understand the game and don't pressure us or try to short us.

 

[JSmith43]

If we have a signed engagment, order form and all of the documents to support the statement "the estimate appears high" (which I'm assuming you are referring to as the appraisal) are we in violation of USPAP?

Unless someone is highly confident of their understanding of USPAP development and reporting standards, it would probably be worth their while to pay a USPAP instructor or known USPAP junkie to go over policies and procedures, if offering so called "comp checks" (really, desktop appraisals) or other restricted use reports.

You will be scrutinized. That should be obvious by now

 

[Webbed Feet]

Expressv,

Webbed,


Just to clear it up, it would seem obvious to me that any appraiser would pull public information to begin an assignment at a minimum.

So you agree you have an appraisal assignment then, so therefore you should be complying with USPAP? What you were doing, or not doing, was not very obvious by your first two posts. It is only becoming more and more obvious as you continue to post about this.

<..... snip....> How could it be interpreted that the MLS search parameters were dictated by the client if we as the appraisers are gathering the information to develop the parameters for the search?

Thank you. Please see my post number 476. So you are in fact creating the search parameters, and this is in fact doing a real estate appraisal.

The hearsay statement is in regards to not physically measuring the house to determine the square footage, as the home owner is always over estimating and public information is rarely correct or den vs. bedroom etc. Since you are all knowing what would your suggestion be for securing payment for comp checks if you do them at all?

Thank you again. Please see my post number 471, section “C” to again understand what you are doing requires Extraordinary Assumptions to so be doing. Reference your USPAP manual on EA's. Reference your USPAP manual on the Scope of Work Rule.

Here is an example of what we communicate as a "comp check" accompanied with the listings found:


"These are the most recent sales from the subjects immediate development. Per MLS and County Records the subject is 1879SF 3Bed/2.5Bath, 2Car Garage, built in 1987. The sales included bracket the subjects living area and bed/bath count. The highest price sale in the past 6 months is $345,000 and it is larger than the subject. The estimate of $355,00 appears high, please call or email if you have any questions."


A quick whats right or wrong will suffice,.

There is nothing inherently right or wrong with your above beyond it is in fact a real estate appraisal with a written report that does not comply with USPAP. In fact, it's not even close. There is no way myself, or anyone on the forum could quickly tell you all that is right or wrong.. I refer you to the Scope of Work Rule and all of Standard Two of USPAP.

If we have a signed engagment, order form and all of the documents to support the statement "the estimate appears high" (which I'm assuming you are referring to as the appraisal) are we in violation of USPAP?

Based on everything you have posted so far, I would have to say yes. Again, your paragraph you say you are communicating in writing above, that I colored in brown, does not even come close to minimum USPAP standards for a written appraisal report.


Webbed.

P.S. Regarding your fee pricing idea.... I have to refer you to the Ethics Rule.

 

[PropertyEconomics]

If we have a signed engagment, order form and all of the documents to support the statement "the estimate appears high" (which I'm assuming you are referring to as the appraisal) are we in violation of USPAP?

Do you have a full and complete work file including a signed certificaiton when you communicate that to your client? You have in fact performed an appraisal by stating the value is Less than what ever number they gave you. That is an appraisal under USPAP and you must have a complete workfile and a signed certification. If you have the work file and the signed certification No you havent violated USPAP .. if you dont .. Yes you have.

 

[Lee Lansford]

Here is an example of what we communicate as a "comp check" accompanied with the listings found:

[FONT=&quot]"These are the most recent sales from the subjects immediate development. Per MLS and County Records the subject is 1879SF 3Bed/2.5Bath, 2Car Garage, built in 1987. The sales included bracket the subjects living area and bed/bath count. The highest price sale in the past 6 months is $345,000 and it is larger than the subject. The estimate of $355,00 appears high, please call or email if you have any questions.[/FONT][FONT=&quot]"

http://northernarizonamls.rapmls.co...ZKprsGBYNIDVhIb/+gwNsokkMQxWKdm1Zjw=&KeyRid=1[/FONT]A quick whats right or wrong will suffice,.

You are communicating an appraisal. If I were doing it, I'd be certain to communicate it as a Restricted Use appraisal; there are reporting requirements (see the USPAP) for such an appraisal.

 

[Webbed Feet]

Do you have a full and complete work file including a signed certificaiton when you communicate that to your client? You have in fact performed an appraisal by stating the value is Less than what ever number they gave you. That is an appraisal under USPAP and you must have a complete workfile and a signed certification. If you have the work file and the signed certification No you havent violated USPAP .. if you dont .. Yes you have.

P.E.

Don't you think it is a lot more than just a work file and signed certifications for a written report? I do. Like Identification of client and intended use, SOW, Disclosure of any EA's or HC's, H&BU, Reconciliation, just to name a few.

But then I am unsure that the SOW can be claimed to be credible for the intended use anyway.

Webbed.

 

[MarcMangan]

I have never gotten a single appraisal after stating that.

My normal clients don't ask and if they are curious I'll send them MLS sheets on all sales in the subdivision within 20% of the subject's size for them to see whats sold. Nothing else is said. If I get it I get it if not then I don't.

My e-mail to them usually says to the effect "here are all sales from the subject's subdivision hope this helps in your determination."

If I were in a situation where I had to get the order to live and make ends meat then things could be different. Hopefully I never come to that stage to find out what I'd do. I enjoy looking at myself in the mirror and knowing I do what's right.

The bad appraisers doing this crap, calling when value issues are found keeps us good guys clientless.

If I get an appraisal order I do the appraisal regardless of what the value is and I expect payment.

If the house is not going to meet FHA guidelines or a condition issue then I call the client. There are no value issue calls.

UNLESS it's VA in which you are required to notify the lender and allow the lender to select a POC who can provide you with additional market data. Again value should never be discussed though only stating there is an issue. Never state your value over the phone. It becomes and oral report. Did that oral report meet USPAP? I never say the property will not appraise for the contract price. I say there is a value issue. Thats it. And thats only on VA.

Stating a range of values is an appraisal, stating that the estimated value on the order is high is an appraisal even if you don't say the number the number is printed on the order and therefore your client knows what # your referencing.

Best advice don't talk or e-mail value. Tell them the value with your appraisal.

In my e-mail I may say the attached appraisal indicates a value of $zzz,zzz That's about as far as I get in communicating value outside of the appraisal.