DB
Elite Member
- Joined
- Apr 29, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Tennessee
Pam .... as many times as I have read that ... something in it just hit me and I think it needs to be brought out:
2. a direction in assignment results that favors the cause of the client;
If a lender/client includes in the assignment instructions that they only want 5 acres of land and no buildings included in the appraisal, and if there is actually 40 acres of land and 3 barns/sheds on the property, then using a hypothetical situation will indeed cause the appraisal to favor the lender/clients position, due to the fact that, should it default, the entire property will be foreclosed and yet the lending decision is being made on specific criteria that the lender/client has laid out. Therefore, under USPAP, wouldn't using the hypothetical situation limiting the appraisal to 5 acres and the dwelling, be a violation?
Help me out here .....
Thanks a heap!!
2. a direction in assignment results that favors the cause of the client;
If a lender/client includes in the assignment instructions that they only want 5 acres of land and no buildings included in the appraisal, and if there is actually 40 acres of land and 3 barns/sheds on the property, then using a hypothetical situation will indeed cause the appraisal to favor the lender/clients position, due to the fact that, should it default, the entire property will be foreclosed and yet the lending decision is being made on specific criteria that the lender/client has laid out. Therefore, under USPAP, wouldn't using the hypothetical situation limiting the appraisal to 5 acres and the dwelling, be a violation?
Help me out here .....
Thanks a heap!!