Using the subject as a comparable!!!!

[Anonymous]

One thing about this business is that one is continually amazed at the liberties professionals? take with the situation.

strip office complex where out-of-state general appraiser came in and did an 'appraisal' using as comparable 1 the subject. Now I've never heard, saw or read that this can be done, and no, I haven't
been in the sun too long.

from the report:

"...In the immediate area of the subject property two sales that are considered relevant to this appraisal analysis were found. One involves the recent sale of the subject property, which occured in XX of 19XX. This sale is recorded as sale #XX..."

A little help here, folks.

ps--This guy never got a reciprocal license for PA. Who does he get reported to?? home state or carpetbagging state??

 

[Don Clark]

:lol:

Creative!!!!!!!!!!!

Seriously tho, if there is a lack of good comparables a disertation as to a prior sale of the subject can establish the subjects marketability, at least in the context of the time in which the prior sale occured, Remember, USPAP does not state how many comps to use, it assumes at least one. It also does not state that you cannot use a prior sale of the subject as a comparable. The argument would probably be that he/she was complying with USPAP requirement as to subject sales history.

If you believe that this appraiser has done something wrong, report him to both states. If no recriprical license was obtained, report that part to the state in which the appraisal was done.

Don

 

[Frederick R. Ruffell]

Per FNMA selling Guide(04/15/02) sec 406.02 "The appraiser may use the subject as a fourth comparable sale or as supporting data if the property previously sold (and closed or settled)." I have used this recently a couple of times. I suppose if the reasoning fits for the fourth comp why not the first? Now lets see it as the first and only comp!!!!

 

[Dennis J. Black ASA IFAS]

Turn him in? You must be joking. First, FNMA Guidelines have NOTHING to do with the valuation of a strip office complex. Second, there is plenty of precedence for using a recent, arms length, market value, transaction of the subject. Start with the Federal little yellow book.

 

[Anonymous]

the guy does an appraisal in a state he's not licensed in and certifies that the report is USPAP compliant? So why do you get licensed anyway? Just to see the nice wall certificate and pocket card? have fun at continuing educaation classes? Just
what is licesnsing for, collecting fees or regulating the profession?
or neither or both?

Can you cross state lines and do an appraisal where you're not licensed? I can't and won't. SO, I shouldn't turn him in? I mean, he practices just over the line, about 40 miles away and heck, that's just as good as being local, right? Perhaps the stupid appraisers are the ones that go to the trouble to get certified in both states, to stay legal, honest and professional? But that takes time and money, and Mr. Carpetbagger here I guess has more important things to do with his money and time. Maybe

As for using the subject as the comp, the appraiser made no adjustments, so it is just a filler comparable, and it's stale, over 3 years old in a market I consider steady, with appropriate comps if one spends more than an afternoon in the locale.

 

[Terrel L. Shields]

Are you complaining about the appraiser as a interloper or about his use of the subject as a comp. There is no requirement in USPAP that you have 3 comps, I suppose you could have just one.

Ter

 

[Frederick R. Ruffell]

Dennis J. Black,
I never intended to imply that FNMA Guidelines have ANYTHING to do with the valuation of a strip office complex. My intention was to demonstrate to Terrel that the use of the subject's recent sale as a comparable is not so uncommon in appraisal practice.

 

[bradellis]

Frank,

One can easily cross state lines to do an appraisal so long as one has obtained a temporary practice permit from the state in which the property is located. Not hard to get. Obviously, though, one must conform to the competency requirement that includes geographic competency.

Brad Ellis, IFA, RAA

 

[John SRA]

When there is a question about USPAP I look to the USPAP book and/or the ASB.

2002 FAQ Book, page 63, question 99.

QUESTION: Is it a Violation of USPAP to use a recent sale of the subject property as a comparable is the sales comparison approach?

RESPONSE: No….

As to the issue of proper licensing or other available data, those are separate points to consider.

Best Wishes

JC

 

[Mike Garrett RAA]

I have seen appraisals where the only sale was the subject! Emphasis was placed on the cost approach ..."as supported by the sale of the subject". This was for a refinance.