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Rhetorically Asking - the Logic of Scope

Does Providing Only One Comp Violate Scope of Work?

  • Yes, Our peers always provide 3 or more

    Votes: 0 0.0%
  • No, USPAP does not specify how many comps are required

    Votes: 12 100.0%

  • Total voters
    12

George Hatch

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Certified General Appraiser
State
California
You should have added some tasteful art to that post.
 

Tom4value

Senior Member
Joined
Dec 4, 2016
Professional Status
Certified Residential Appraiser
State
Massachusetts
If our peers only used 1 comp, why have I never seen an appraisal based on one comp in 28 years?
Because you are all thinking about appraisals for mortgage lending. Three is minimum.

The topic is USPAP.
 

Meandering

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Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
USPAP does not require 3 comparable sales in the SA. SOW however says we need to do what our "peers" do...and they invariably provide 3 or more sales. The client is a private party and fairly clueless to the appraisal process. They leave the scope of work up to us.

So if you find the one sale that really counts. ...and provide only that to support the SA, are you or are you not violating USPAP? Your client probably doesn't care. But what about our peers?
3 comps is the "recognized methodology", which USPAP requires "recognized methodology" be used.

Now if the question is why "3"

well, it's because 3 data points compose a plane that demonstrates the market for similar properties.

Here is the math for the plane, that is the demonstration of the market.

 

George Hatch

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How does methodology come to be recognized, if not for users deciding it means something to them?

It used to be standard for us to use 10 comps for rent surveys and 10 comps for sales comps. Times have changed, and user expectations have changed.

Fannie went with 3 comps because that's what fit on the page. The old 2065 form they used had 5 comps on one page. Expediency. Not "methodology"
 

Carnivore

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Professional Status
Certified Residential Appraiser
State
North Carolina
I don't believe it would be a USPAP violation, as long as the appraiser explained his reasoning and what attempts were made to try and find a few other sales. I would also assume in this situation, the appraiser would also be completing a cost or income approach. Personally I would use that one true comparable as My number-1 comp , and then include at least two other ones and, make what ever adjustments were required. Even on a private report the reader & user will look through it and the two additional inferior or superior sales would show them why you Stood Hard on the Comp#1.
As far as peers most would probably say the reports value was not adequately supported, and that One sale does not make a market.
Odd ball assignment properties often only have one fairly reasonable comparable sale.... OK, like you said, that does not mean you can't opine a Value and weight that one comp. Your right a cost approach might only be the other support you have.

ENTER: AMC Phone Monkey screaming; "THE CLIENT SAID!" Ya, Right monkey Boy... so whats your solution? AMC answer; Silence! or just repeating themselves.

I have an AMC right now begging anyone to complete a 1004 on a property. I can't decide to take it or not! I may just Quote Real High and then wait for the continuous harassment from the Monkey's when I deliver it with maybe sorta ok one comparable and two out in space comparable. Plus the Cost Approach.

They are not capable of understanding!

Somewhere in my office I have a Course Book for Appraising Odd-Ball Properties. The course and book is very good.
 
Last edited:

ucbruin

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Mar 11, 2014
Professional Status
Certified Residential Appraiser
State
Massachusetts
"It used to be standard for us to use 10 comps for rent surveys and 10 comps for sales comps. Times have changed, and user expectations have changed."

Wow....
Residential or commercial or both?
What year did the 10 comps era end?

I'm sure reviewers and/or UWs didn't want to have to look at 10 comps....
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
"It used to be standard for us to use 10 comps for rent surveys and 10 comps for sales comps. Times have changed, and user expectations have changed."

Wow....
Residential or commercial or both?
What year did the 10 comps era end?

I'm sure reviewers and/or UWs didn't want to have to look at 10 comps....
So what! I don't care one bit what they think, If I think I need 10 Comps then 10 comps it will be... We are the Appraisers, not them.

If OTOH they want 10 comps and I think we only need three, Well I will give them 10 comps ...and weight the ones I think are germane.
 

ucbruin

Elite Member
Joined
Mar 11, 2014
Professional Status
Certified Residential Appraiser
State
Massachusetts
So what! I don't care one bit what they think, If I think I need 10 Comps then 10 comps it will be... We are the Appraisers, not them.

If OTOH they want 10 comps and I think we only need three, Well I will give them 10 comps ...and weight the ones I think are germane.
Dude....
Slow your roll....:giggle:

Were you appraising during the "standard 10 comps" era?
 
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