Supplemental Standards Rule Elimination

[hastalavista]

Yeah. That's kind of what I'm saying. Can we still tell a client/lender/user to go pound sand if we don't want to comply with their after-order conditions?

Sure we could.
However, if the request was reasonable, I'd consider completing it. An automatic "no I won't do that" isn't a reasonable business practice (IMNSHO) although some subscribe to this technique (more power to them, I guess).

 

[CANative]

An automatic "no I won't do that" isn't a reasonable business practice

Business-schmisness. Does it constitute a SOWR violation?

An appraiser must be prepared to support the decision to exclude any investigation, information, method or technique that would appear relevant to the client...

Does that mean anything that a client can think up? From who's viewpoint does the phrase "would appear" refer to?

 

[hastalavista]

From who's viewpoint does the phrase "would appear" refer to?

To the immediate request, me- it is dependent on my viewpoint.
If they think I'm wrong, then they can make a complaint and then the issue becomes from the regulator's viewpoint.

And that's why I say "reasonable"; that's the test I use.
They can always decide I'm being unreasonable, not press a complaint, and then not send me anymore business-schmisness.
If I fail to address what I consider is reasonable, then I probably deserve to lose the business. If I consider it unreasonable, who wants their business anyway?

 

[CANative]

I'll look again but I didn't see "reasonable" listed anywhere in the SOWR.

 

[hastalavista]

I'll look again but I didn't see "reasonable" listed anywhere in the SOWR.

Don't waste your time.
It isn't a SOWR Standard. I call it the Denis Test . And since the SOWR doesn't provide a test, I feel confident using mine.

An appraiser must be prepared to support the decision to exclude any investigation, information, method or technique that would appear relevant to the client...

(my bold)
Q: Why didn't you do X technique?
A: I didn't consider it reasonably necessary and it wasn't specifically requested.
Q: So are you telling us it is up to you decide if X should be done or not?
A: I'm telling you its up to me to support my decision (in lieu of a specific request). My decision-tree to use or not use X in this case is based on my determination of what is reasonably necessary. I determined it wasn't reasonably necessary for A, B & C reasons. Since it wasn't specifically requested, yes, it is up to me to decide if it is necessary. It isn't.

 

[CANative]

Your "reasonably necessary" argument sounds like it's coming from the section of the SOWR statement regarding expectations of parties who are regular users for similar assignemnts.

Q: Why didn't you do X technique?
A: I didn't consider it reasonably necessary and it wasn't specifically requested.
Q: So are you telling us it is up to you decide if X should be done or not?
A: I'm telling you its up to me to support my decision (in lieu of a specific request). My decision-tree to use or not use X in this case is based on my determination of what is reasonably necessary. I determined it wasn't reasonably necessary for A, B & C reasons. Since it wasn't specifically requested, yes, it is up to me to decide if it is necessary. It isn't.
Q: But we require a site value estimate whether or not you completed the cost approach.
A: ?

It wasn't specifically requested because the broker didn't know who he was going to send the loan to and probably wouldn't have know about the site value requirement even if he did know who the report was going to.

Is the site value estimate now a SOW requirement?

 

[hastalavista]

Q: But we require a site value estimate whether or not you completed the cost approach.
A: ?

It wasn't specifically requested because the broker didn't know who he was going to send the loan to and probably wouldn't have know about the site value requirement even if he did know who the report was going to.

Is the site value estimate now a SOW requirement?

No (IMO), it is not.
So, if someone were to complain, would I win? I think so. The Denis Test tells me so.

But does that mean I wouldn't comply with the request after the fact?
It depends... I may but I'm not obligated to do so. A decision to provide a site value estimate or not at this point is a business decision.

 

[George Hatch]

If the ground rules for an assignment were in place and available to the appraiser prior to their completion then the appraiser should both be aware of and address those elements in their report. If the client wants to move the goalpost after the fact then it seems to me we're getting into areas where the Denis test might be appropriate.

That's why I always ask, and that's why I repeat whatever the answer is in my report.

 

[hastalavista]

So, if someone were to complain, would I win? I think so. The Denis Test tells me so.

After reading Ray Miller's recent thread-
http://appraisersforum.com/showthread.php?t=130804

The Denis Test may not be sufficiently adequate in the Great State of Wisconsin!

 

[Fred]

An appraiser must be prepared to support the decision to exclude any investigation, information, method or technique that would appear relevant to the client...
Q: Why didn't you do X technique?

A: Go fish!

The rule says I only have to "be prepared to support the decision." And I am. I am not required to actually support it.