More On Free Comp Checks

[JSmith43]

I have a great idea. Why don't you present about the last thirty of so of these you have done to your state appraisal board and ask them?

I bet they would impart a slice of "Oregon justice" if not open up a can of USPAP whoopa$$, but I don't know too much about the CA appraisal board. Heck, with their budget problems, they could use the fine revenue.

 

[PropertyEconomics]

Excuse me, I feel nauseated...

Not to worry Pam .. it is a strain of the Valuation Flu that has been spreading like wild fire throughout our profession for the past 10 years or so .. Im surprised the Feds havent yet labeled it a pandemic ... because it certainly is pandemic in its proportions.

 

[rescom]

Pam I dont relate to these type of Comp checks. I get a different type. I have regular clients. They give me 95% of their work. They ask for me to check every property. My fee is not contigent on the value. If the value is way off the Sales price then they renegoiate or move on. Or they base the sales price on the value I arrive at. Why would this type of comp check conflict with ethics? My fee or getting an order or not connected. I get the orders because I am their guy.

You are so lost, arent you? "If the value is way off, then they move on?" Move on to where? Another appraiser to value shop or cancel the order because it isn't going to hit their value? So in other words, the assignment is contingent upon whether or not you can hit a particular value. Thats a violation of USPAP genious!

No wonder you are "their guy". I bet I would be everyones "guy" too if I did free comp checks. Great business plan! You should be proud.

:new_all_coholic:

 

[Webbed Feet]

You are so lost, arent you? "If the value is way off, then they move on?" Move on to where? Another appraiser to value shop or cancel the order because it isn't going to hit their value? So in other words, the assignment is contingent upon whether or not you can hit a particular value. Thats a violation of USPAP genious!

No wonder you are "their guy". I bet I would be everyones "guy" too if I did free comp checks. Great business plan! You should be proud.

:new_all_coholic:

Your post lacked just a wee little bit of the impact it could have had if you would have spelled genius correctly.

 

[TC]

...and put an apostrophe in thats.

 

[Webbed Feet]

I bet they would impart a slice of "Oregon justice" if not open up a can of USPAP whoopa$$, but I don't know too much about the CA appraisal board. Heck, with their budget problems, they could use the fine revenue.

As the CA interpretation of USPAP is pretty much exactly the same as the OR one's I know of, I would think that would be a very safe bet. Also, when a licensed or certified real estate appraiser cannot understand one "type" of APPRAISAL ORDER because they think they get a "different type" of APPRAISAL ORDER from a client that sends them 95% of that client's work to them, so they misapply the PHASING of mulitple orders for real estate appraisals, as they are incapable of comprehending the situation for what it is..., we have an even safer bet we are making.

 

[Webbed Feet]

...and put an apostrophe in "thats."

If we are that picky I think those red thingies would have been needed in your sentence! ... LOL

 

[Caterina Platt]

Alright, English teachers.

I'm simply basking in the rare moment that Rescom and I see something from the same side.

 

[William K]

Pam I dont relate to these type of Comp checks. I get a different type. I have regular clients. They give me 95% of their work. They ask for me to check every property. My fee is not contigent on the value. If the value is way off the Sales price then they renegoiate or move on. Or they base the sales price on the value I arrive at. Why would this type of comp check conflict with ethics? My fee or getting an order or not connected. I get the orders because I am their guy.

Let me ask a question or 2, If you perform a "check" of a property and it is at a value that the clients deal can be done do you then proceed with a full appraisal?
If your "check" comes back significantly less do you still perform a full appraisal?

You state in your post "Sales price" do they only ask for the "check" on Sales or also Refinances?

 

[CANative]

In California there is no requirement to comply with USPAP in regards to a "comp check."

Per USPAP, compliance with USPAP is required when either the service or the appraiser is obligated to comply by law or regulation, or by agreement with the client or intended users.

In California Appraisal is defined as:

"Appraisal" means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion in a federally related transaction as to the market value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.

California Business and Professions Code, Division 4, Part 3, 11302 (b).

Since a "comp check" is almost always used by brokers/LO's etc. as a preliminary step before asking their client to spend money on an appraisal or spending it themselves and not the actual report used in the underwriting process then it is not part of a federally related transaction and at this point there are no other intended users.

Where is the requirement for USPAP compliance?