Report states not USPAP compliant

[Oregon Doug]

Appraisal services cover a broad range of activity and the SOW agreed to by the client and the appraiser define the guidelines under which the assignment needs to be completed. Maybe it's an "appraisal" that needs to be USPAP compliant, maybe not.

Oregon Doug

 

[Wendy]

Quote:
Appraisal: All commercial submissions must be accompanied by an appraisal not more than 18 months old. ..........Please be advised that when the appraisal is received if the values differ from either of the acceptable methods above we will endorse the policy back to inception date in accordance with the appraised values. End Quote.

If I were completing these based on this language, I'd make 'em compliant.

I wonder if they are going to want them for SFR properties?

 

[Ms. Janet]

Yep, I agree Wendy. Requiring an appraisal by a licensed appraiser makes it pretty clear what they are asking for and expecting to receive.

And yes, I believe they do want an appraisal on the high value residential which they define as over $500,000 in coverage.

 

[Wendy]

And yes, I believe they do want an appraisal on the high value residential which they define as over $500,000 in coverage.

Well that's no fun. I'd be willing to crank them out on $175k CB cookie cutters.....$500K and I'd actually have to work!

 

[John Wilson]

Perhaps the one who produced the value is not a licensed appraiser at all.

Sounds like they just ran the property through M&S for a cost approach. Anybody with a computer can produce one on-line at M&S for $8.00.

You don't need a license for that.

Sombody just decided to pay $475 for it. Great work, if you can get it.

Who's the victim?

 

[Terrel L. Shields]

, I'd make 'em compliant.

The client didn't request a "Certified" appraisal and I agree that they are wanting a cost approach estimate...they aren't insuring the land anyway. At least I haven't seen land burn up in a fire lately. Again, "Appraisal" is way to generic a term. Mere use of "appraisal" hardly quantifies it specifically as a certified market value appraisal of fee simple. An 'appraiser' came to my property when a woman ran thru my fence, tore out the corner post and my driveway alarm, and uprooted a 20' walnut tree. That's all part of 'real' property...he wasn't a certified appraiser. Did I feel mislead? Hardly.

 

[Verne Hebert]

Again, what is the scope the the assignment you looked at? You don't know. No one knows except the producer of the document and the person who ordered it at Citizen.

The scope you looked at may have been the replacement cost estimate...only....and did not include the appraisal component of Citizens package as shown by J. Rabin.

Maybe Citizen is saving money and not fully complying by not including the appraisal component until the auditors pick it up.

 

[xm39hnu]

I don't know about the rest of you, but I'd be writing the client back requesting that he state the type of value opinion to be derived. Market value? Insurable value (please define)? Replacement cost new? Depreciated replacement cost? Use value?

I don't think I'd just "guess" that they want RCN and let it go at that.

It's a good opportunity, though. Might be time to write Citizens and let them know you're alive, sort out the details of what they need, and arrange to contract to perform this service.