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More On Free Comp Checks

How often do you actually get an appraisal order if they want a free comp check first and you won&#3

  • Never

    Votes: 207 30.8%
  • Maybe 1 out of 100 calls like that

    Votes: 107 15.9%
  • About 1 out of 50 calls like that

    Votes: 94 14.0%
  • About 1 out of 10 calls like that

    Votes: 117 17.4%
  • About 1 out of 5 calls like that

    Votes: 94 14.0%
  • I ALWAYS talk them into the order without giving a value first

    Votes: 53 7.9%

  • Total voters
    671
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I have been following this "comp check" issue on this and other threads. Here's what I do for my long time clients. I will do an MLS search for solds, actives, pendings and pendings taking back up offers. I do not enter any search parameters other than a 1 mile search radius. I then forward the info to them. If they have a potential borrower who thinks their home is worth $500,000, for example, and there is nothing on the list exceeding $400,000 they can decide whether to proceed or not. If their potential borrower gives them a $350,000 estimate, my clients at least have a more reasonable idea of how to proceed. I never give them any kind of value estimate and I always let them know that I can only provide a value opinion after an appraisal is completed. I don't think I am in violation of USPAP or any other regs.
 
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?
What if the LO just asks. with no "we need x to go forward, as a condition/reward for a particular outcome of assignment #1. "
 
I have been following this "comp check" issue on this and other threads. Here's what I do for my long time clients. I will do an MLS search for solds, actives, pendings and pendings taking back up offers. I do not enter any search parameters other than a 1 mile search radius. I then forward the info to them. If they have a potential borrower who thinks their home is worth $500,000, for example, and there is nothing on the list exceeding $400,000 they can decide whether to proceed or not. If their potential borrower gives them a $350,000 estimate, my clients at least have a more reasonable idea of how to proceed. I never give them any kind of value estimate and I always let them know that I can only provide a value opinion after an appraisal is completed. I don't think I am in violation of USPAP or any other regs.

I think the predominate view of the USPAP instructors is that if you do any filtering, you have ventured into the realm of an appraisal assignment.

Let the client do the filtering, and you are merely supplying data based upon their parameters.
 
<.....snip......>

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.

I don't have to ask the State of Washington appraisal board what they will think...I've been licensed there and I know damn well what they will say......

:angry:
 
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.

Are you really a real estate appraiser?
PROBABLY NOT

If you are a real estate appraiser how long before you get sanctioned by a state appraisal board?
FAR SOONER THAN I EVER WILL
 
I agree with mentor, to a point, and you're supplying written documentation of your filtering to the potential client which makes it an appraisal. Numerical range of value is expressed through filtering a 1 mile distance. Don't get caught. They have proof if anything goes wrong with the loan, time stamped MLS data too (usually). Any filtering of data in a written format (MLS) and delivered to the client is an appraisal. In order to not have any filtering your search would have to be wide open with no parameters - hardly possible. JMHO

Def of USPAP appraisal subparagraph 2 or 3 (i believe lol).

I have been following this "comp check" issue on this and other threads. Here's what I do for my long time clients. I will do an MLS search for solds, actives, pendings and pendings taking back up offers. I do not enter any search parameters other than a 1 mile search radius. I then forward the info to them. If they have a potential borrower who thinks their home is worth $500,000, for example, and there is nothing on the list exceeding $400,000 they can decide whether to proceed or not. If their potential borrower gives them a $350,000 estimate, my clients at least have a more reasonable idea of how to proceed. I never give them any kind of value estimate and I always let them know that I can only provide a value opinion after an appraisal is completed. I don't think I am in violation of USPAP or any other regs.
 
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I agree with mentor, to a point, and you're supplying written documentation of your filtering to the potential client which makes it an appraisal. Numerical range of value is expressed through filtering a 1 mile distance. Don't get caught. They have proof if anything goes wrong with the loan, time stamped MLS data too (usually). Any filtering of data in a written format (MLS) and delivered to the client is an appraisal. In order to not have any filtering your search would have to be wide open with no parameters - hardly possible. JMHO

Def of USPAP appraisal subparagraph 2 or 3 (i believe lol).

That's the whole point. Once the appraiser starts using their knowledge and judgement to filter the data it becomes an appraisal.

Oh, BTW, did you find the lines in USPAP that say that the appraiser must express in a written numerical form the appraisal? I still can't find that in my copy.
 
That's the whole point. Once the appraiser starts using their knowledge and judgement to filter the data it becomes an appraisal.

Oh, BTW, did you find the lines in USPAP that say that the appraiser must express in a written numerical form the appraisal? I still can't find that in my copy.

He is convinced that his little skippy method of weasling around the definition of an appraisal is accurate, so he is never going to change his mind. Anyone with a brain reading this can understand how silly it is. Unless, of course, they are looking to find a way around the system and will take anything they can grab onto as an excuse to continue to skip along. Gotta love appraizul land. What a fabulous place.
 
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