More On Free Comp Checks

[Mister Ed]

LO : We need a value in the $250k range. Me : What's the least you can work with and I'll have a look. LO : Well, really we only need $190k. Me: Yeah, that's doable assuming the property is as how you've explained and it's not needing repairs. LO : Cool, get your $750 from the HO and if there's any problems give me a call. Me : Okie dokey

See, it's not an appraisal because a value or range hasn't been expressed. A benchmark of $250k yes, but there was no numerical expression by me of a value that could be proved in court. In otherwords, I didn't send an e-mail with a value and I didn't write him a note with the value or range. It wasn't "numerically expressed" to the point where it could be proven that a specific value or range of value was conveyed. It's another case of he said vs he said. If there's more than 2 parties that hear your expression of value than that could be construed as an "appraisal" as it's more than just the word of one person against the word of another person. I do understand your miscomprehension with the term "numerically expressed". Numerically expressed means a conveyance in written form of an analysis. My scoping out the market around the subject doesn't qualify for 2 reasons. As Greg said there's been no contract decided yet between us for an assignment and the value wasn't "expressed" in the terms in the spirit of which the doctrine (USPAP) was written. I'm not going to argue this point, we've gone over it plenty of times already. Ca. agrees with me and that's enough for me. It's not enough for you, fine.

You need PROOF for there to be an appraisal.


OK - I'm starting to think you're just scrwein with me lol. You need proof to claim anything.

The interesting thing about ethics is not about whether someone can prove someone did right or wrong, it is about knowing the difference and how we live our lives based on that--professionally and personally. It is the "Man in the Mirror" message.

Can I prove you did something right or wrong? Not really... nor do I want to. The short of it all is this: I know what Georgia Appraisal Law says about this and how it is interpreted. I don't have to worry about the other 49 states because I am not certified to appraise in any of the other 49. The interpretation of the definition of an appraisal that I expressed above is exactly how the chairman of the GREAB interprets it. That is all I need to know because if I am ever brought before the GREAB on charges of performing an appraisal and not being USPAP compliant, I cannot use the defense of, "But I didn't say a number."

I suggest that Apprazur's interpretation of Cali's interpretation is irrelevant unless he is certified in Cali. I suggest that Apprazur ask the powers that be in Washington to render their interpretation.

 

[Samshile]

Is this English Major day? There does seem to be some consistency.

Ah ha!
Are comp checks a violation of USPAP?
NO.
Are some of you scared you may be in conflict with USPAP?
YES.
JUSt follow the proper guidelines and you will forever stop taking $400 for a report that is useless.

 

[JSmith43]

So if I am to understand you correctly, the LO expressed the numerical value .. and you just said thats doable without ever having spoken the number is that correct?

I think the original Nixon quote was: "Yes, yes we could do that :icon_idea:.....But, it would be wrong."

Of course, at the time, he knew conversations in the oval office were secretly recorded & he could not expect that his secretary, Ms Woods, would be able to do a perfect editing job.

 

[Ken B]

USPAP does not regulate comp checks. USPAP provides Rules and Standards with which appraisers must comply. Although CA only requires appraisers to provide appraisals for FRTs, CA requires appraisers to comply with USPAP. If an appraiser provides a valuation service, regardless of purpose, the appraiser must comply with USPAP, even in CA. In order to comply with USPAP, an appraiser performing a comp check must conform to the Rules and Standards 1 and 2. This service, which some would call a "desktop appraisal" cannot be a precursor to a subsequent event. In other words, the appraiser cannot accept a "comp check" assignment where the there is an understanding that if the comp check results indicate a certain value lnown to the appraiser, the appraiser will receive a request to perform what some call a "full" appraisal.

So yes, an appraiser who complies with USPAP can perform "comp checks." An appraiser who does not comply with USPAP is in violation of any state's regulations which identify USPAP as the minimum standard for appraisal practice. And that includes CA.

 

[Offshore]

JUSt follow the proper guidelines and you will forever stop taking $400 for a report that is useless.

Please define a "useless" report . If it saves a lender $200K is it truly useless? Perhaps not to the MB and his trained OREA monkey. Were those hundreds of thousands of upside down reports for Orange County "useful" reports? I think it depends on who is being gored.

 

[JSmith43]

This service, which some would call a "desktop appraisal" cannot be a precursor to a subsequent event. In other words, the appraiser cannot accept a "comp check" assignment where the there is an understanding that if the comp check results indicate a certain value, the appraiser will receive a request to perform what some call a "full" appraisal.

This is an arguable point, as the SOW of assignment #1 is different from assignment #2. I agree, that assignment #1 should be turned down, if the lender says we need x to go forward, as a condition/reward for a particular outcome of assignment #1.

With the event of HVCC, if the transaction is covered by HVCC, I'm not so sure. I think it might put the kibosh on desk top appraisal assignments. Sure wish the surfer would weigh in on this issue. But, I understand, if he doesn't. Who needs a food fight?

 

[Offshore]

I think it might put the kibosh on desk top appraisal assignments. Sure wish the surfer would weigh in on this issue. But, I understand, if he doesn't. Who needs a food fight?

Keep quoting Nixon and someone will eventually show up. :laugh:

 

[Ken B]

This is an arguable point, as the SOW of assignment #1 is different from assignment #2. I agree, that assignment #1 should be turned down, if the lender says we need x to go forward, as a condition/reward for a particular outcome of assignment #1.

That was the scenario envisioned in my post.

 

[Samshile]

This is an arguable point, as the SOW of assignment #1 is different from assignment #2. I agree, that assignment #1 should be turned down, if the lender says we need x to go forward, as a condition/reward for a particular outcome of assignment #1.

With the event of HVCC, if the transaction is covered by HVCC, I'm not so sure. I think it might put the kibosh on desk top appraisal assignments. Sure wish the surfer would weigh in on this issue. But, I understand, if he doesn't. Who needs a food fight?

Mentor what is an SOW?

 

[TC]

I could be wrong, but I'm guessing Scope Of Work.