Oral appraisal report

[moh malekpour]

Standard Rule 2-4 authorizes the use of oral report of real property appraisal but to the extent that is both possible and appropriate, it must address the substantive matters set forth in Standard Rule 2-2 (b) summary appraisal report.

Does anyone know why it should not address the substantive matters set forth in Standard Rule 2-2 (a) self contained report or Standard Rule 2-2 (c) restricted use report?

 

[Bob Ipock]

How possible or probable would it be to ORALY have the detail reqired of a self containd....or copies of notes and other doccuments. Is it possble to ORALY report all the data on a tax card, or MLS sheet, or lease etc?

The Restricted is not ENOUGH detail as it is only intended for a single user client with disclosure requirements that are better served in by 2-2 B.




No doubt I am wrong and will be corrected quick enough.

 

[moh malekpour]

How possible or probable would it be to ORALY have the detail reqired of a self containd....or copies of notes and other doccuments. Is it possble to ORALY report all the data on a tax card, or MLS sheet, or lease etc?

The Restricted is not ENOUGH detail as it is only intended for a single user client with disclosure requirements that are better served in by 2-2 B.




No doubt I am wrong and will be corrected quick enough.

I agree that it is difficult to orally report self contained but it is much easier to do 2-2 c restricted than summary 2-2 b. restricted use requires less details and is limited to the intended user only. summary has more details and has several users and may go from one user to another and word of mouth changes from one user to another.
If appraiser has to report orally, it makes more sense to be used for restricted not summary.

 

[Bob Ipock]

See.... I was RIGHT.......I was in fact WRONG...so I guess that makes me right about being wrong.

 

[The Warrior Monk]

I've been reading up on the SOW Rule, and taken several courses associated with it. One of the things that I came across in my studies was communication of an oral appraisal report. It was suggested that an oral appraisal report have the following elements, found in the SOW Rule:

• client and any other intended users;
• intended use of the appraiser’s opinions and conclusions;
• type and definition of value;
• effective date of the appraiser’s opinions and conclusions;
• subject of the assignment and its relevant characteristics; and
• assignment conditions.

Obviously 2-2(b) can't be used verbatim, because it includes a signed certification.

 

[Fred]

Just wondering David, why wouldn’t you just read the SOWR itself, if you want to know what it says? In your readings, did you come across anyone who says that the SOWR simply repeats what is already in Std 1 and SR 1-2, says if you get stuck you may have to get back with the client and recalibrate the assignment; and adds some meaningless boilerplate about broad flexibility and significant responsibility, whatever that is. See that, I could saved all that money with 1 sentence.

It was suggested that an oral appraisal report have the following elements, found in the SOW Rule:

Why not base what ought to be reported on reporting requirements?

Standard Rule 2-4 authorizes the use of oral report of real property appraisal but to the extent that is both possible and appropriate, it must address the substantive matters set forth in Standard Rule 2-2 (b) summary appraisal report.

Moh, I have a feeling that reporting label nonsense will go the way of limited and complete in the next USPAP. So, let’s be grateful for that.

SR 2-4 doesn’t make sense, especially on testimony. The oral report is virtually always to support a written one. You don’t always get to say what you want on the stand. So unless he written report is included in “testimony,” you’d be lucky to comply with verbalizing the substantive content.

I once saw an attorney put his witness on the stand, pass, and let the other side cross to exhaustion. Not even an objection. Believe me, that appraiser wasn’t gong to cover all of that substantive content orally.

Other than testimony, maybe you could just read it.

Does anyone know why it should not address the substantive matters set forth in Standard Rule 2-2 (a) self contained report or Standard Rule 2-2 (c) restricted use report?

In practice, few appraisers use the label self-contained. And the restricted use report doesn’t have to include “substantive matters.”

“Summary” is kind of the default for what a good written report is. The supporting AO “interprets” SR 2-2 (even though AO’s are not supposed to interpret) the same way I do – a summary report is to have “all info significant to the solution.” Thus, it ought to meet the Std 2 requirement for “sufficient information.” Also, the work file requirement is for the equivalent of a summary report. It's the all-purpose option, kind of like havng a blue blazer.

 

[Joker]

Scrap USPAP in lieu of common sense! It's an oral report. What client that accepts an oral report #1 cares about the requirements set forth and #2 knows what they are? It's a friggin ORAL report. Supply the client with a summary of your findings and conclusions, not bothering with the daggone restrictions of a restricted use (which it likely is anyway) and without the fine detail of a self contained. I don't know any client that wants to hear a stupid appraiser ramble about the bs that would be part of a self contained report.

Simplified the assignment is thus: do that appraisal and tell me what you find out. I don't want any paperwork, just tell me the facts and your opinion.

And lets face it, unless you're on the stand (where JD applies) or being taped, who cares as long as you satisfy the needs of your client?

 

[alex gilbert]

Obviously 2-2(b) can't be used verbatim, because it includes a signed certification.

Actually, USPAP requires that for any oral report you have a signed and dated certification in your work file.

 

[Fred]

Alex, you gave a better example of what I was trying to say – that oral reports are always a mixture of oral and written. Testimony summary or transcript goes in the work file too.

Doug, I think they are trying to say what you said – summary. However, I never read self-contained to mean ramble on. I thought since 94, the three options were meant to be: letter report, form report, narrative report. The ASB tried to say it too abstract and fancy- and since then everyone has interpreted and spun the basics into oblivion.

 

[Joker]

Mr. Santora,
Perhaps I wasn't clear. If you provide an oral report with the same level of reporting required by a self contained report, you would be rambling and your client would have the same glossy look on his face that many men get when women talk about their feelings.

Letter, form, and narrative sounds good to me, but like I said, scrap USPAP for common sense.