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New Sales History Requirement

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davehollomon

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Does the new USPAP 3-years sales history requirement, to be effective Jan. 01, 2003, apply to all sales including the comps, or just the subject property?
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Dave:
All sales including the comps ANDthe subject property (whether it is a sale or not...).

Reason is (in part) to reduce the possibility of ILLEGAL 'flipping', as opposed to the honest process of purchasing a fixer-upper and substantially remodeling it for resale.

IF by chance you have an area in which fixers are being sold and you canot locate a single sale which hasn't got low sale/high resale background, you had best explain the situation very very carefully.

Part of it is as the lenders and gov't agencies develop thier own datbases, it is going to be easier for them to locate prior sales: so you'd better watch out, you'd better not cry you'd better be good, I'm telling you why...

:D
 

George W Dodd

Senior Member
Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Also, it is potentially another method for lenders and AMC to gather sales trends and appreciation rates to use in their avm's
 

Farm Gal

Elite Member
Joined
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Professional Status
Licensed Appraiser
State
Nebraska
:lol:
George, You cynic you!

Probably correct, but I'm going to hang on to my rose colored glasses.

I cannot help but think that the requirement (which I have been doing for years ANYWAY... will help point out a few flaws in folk's poorly crafted reports) and if the underwriters or reviewers cannot see that 'something is rotten' then the shame is on them too, also!
 

George W Dodd

Senior Member
Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Lee Ann,

Can't help it sometimes as it's the only way to deal with the crap 8O

Ethics can never be legislated. :!:
 
B

Bemis Pownall

Guest
HOW WILL AL THE OTHER APPRAISERS KNOW THEY ARE VIOLATING USPAP?

UNLESS YOU HAVE TAKEN A CLASS LATELY, READ THIS FORUM OR CAN STAY AWAKE WHILE READING USPAP HOW WILL THESE POOR INNOCENT APPRASIERS (ONES WHICH WILL GET SPANKED ON REVIEWS) KNOW THEY ARE IN VIOLATION OF USPAP??? :icecream:
 

Oregon Doug

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Jan 15, 2002
Professional Status
General Public
State
Oregon
I have been trying to get listing history included too. To no avail so far.

How many of you have seen a house listed for $125,000 for the better part of a year and not sell - then suddenly it sells for $150,000 and appraises at that with no discussion? (insert your own numbers - but you get the point).

Oregon Doug
 

Tim Hicks (Texas)

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Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Doug, too often. However, I still report in my report whether it is required or not. I believe that would fall under the "misleading" category if nothing else.
 
D

davehollomon

Guest
The reason I raised this question is because in a current release from the Appraisal Standards Board titled "Appraisal Standards Board Summary of Actions June 11, 2002" the information which is presented explicitely makes reference to the "subject" property, in several places, concerning the 3-years sales history. This is in reference to 2003 USPAP. I believe 2002 USPAP, and prior, simply made reference to "the" property.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
We could always hold ourselves to a higher standard than USPAP. If it is pertinent report it! We have too many outside interests trying to find the "gray areas" and "loopholes" in the appraisal process.
 
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