USPAP 2003--Clarification Of Prior Sales (3 Year History)

[Blue1]

O.K. so the property actually sold 3 times in the past 3 years.....Now whaddya do :?: :roll: Call all the past grantors/grantees and quiz them on the details of the sale? How 'bout calling the Realtors....bet they'll be real cooperative.....What about if you find a property has been "flipped" isn't your value going to be based on the market as of the inspection date anyway? I agree with Richard....we are already the "Real Estate Police" that's enough liability. Hey! Wait a minute! If we're going to accept even more liability, shouldn't we charge.....say.....DOUBLE! :twisted:

 

[Farm Gal]

:roll:

or...

how bout we make an honest effort to take a look-see and report what we can instead of blowing it off as 'not required, so I don't have to do it and you caaaan't make me?

For Pete's sakes it is in MY opinion going to hurt nothing to do what I sort of thought of as my job all along, maybe this is why I am not getting rich: I actually DO a little homework.

As to the Liability end of it: any one who reads my posts knows I have more than a causal eye toward which end bites and which end wags and if both ends bite I keep my hands and feet out of reach and post warning signs so others don't get hurt!

How bout this concept: SCOPE covers what ya did... NO where does it say that you have to be omnipotent and omnescent, just reasonably diligent! Tell 'em what you did and how you did it! And don't try to pawn off I checked todays paper and thats asa far as I went :twisted: cause someone coming in behind you might just take the minutes to do more 8)


WE AREN"T TITLE companies, some work in nondisclosure states. sometimes data is bad...

How bout just taking a look and finding the obvious, cheking for signs of scat, and moving on down the road!

 

[Ann O'Rourke]

Actually, USPAP does not require any reporting of sales history, only that you consider and analyze it. I always look at any sales and listing histories, as far back as I can get them. Quite interesting!!

Fannie Mae has supplemental reporting requirements.

The Fannie Mae 2055 form says "Date of prior sale" for the comps and "Analysis of any current agreement of sale, option, or listing of the subject property and analysis of the prior sales of subject and comparables." I don't see any time period.

The URAR has a one year reporting requirement for the subject and comps.

If your client wants a 3 year sales history on the subject and comps in your report, it is their supplemental requirement. If you don't want to provide sales histories for comps, don't work for that client.

Ann O'Rourke, the always curious appraiser...

 

[Farm Gal]

Ann:
Welcome to the fray!

While I 'get it' about "consider and analyse", I sort of feel obligated to 'report' however briefly or completely seems appropriate, if for no other reason than to show I really traveled the path.

Haven't commercial guys always been 'required' to cite a three year sales hsitory? Thus bringing us formfilling and narrative residential folks into the same fold?

Bruce:

Point I was feebly attempting to make is that by disclosing your scope of search - source(s) for available/reliable/verifible-through-second-party or lack thereof, and the extent of your effort to research them you have complied!

Like Ann I find a as far back as I can get it history to be quite informative! Was this the crown jewel or the cardboard slipper of the neighborhood when built? Has the individual house or the entire area appreciated on the same level as the rest of the town or are things happening in the neighborhood that I might want to be aware of? Enquiring minds want to know!


Some times you hit gold, sometimes doo-doo. :wink:

 

[Mike Garrett RAA]

Obviously they must have thought it was important enough to change USPAP. I, for one, will report the sales history for both the subject and the comparables....makes my reports look much better, LOL!

Hey Ann, good to see you joining the peanut gallery.

 

[John SRA]

Annor,

SR 1-5 requires you to analyze the sales history. SR 2-2(B)(ix) (for a summary report) requires you to report the findings of your analysis.

JC

 

[Ben Vukicevich SRA]

Flipping?? Nah.

2002 USPAP requires the one year prior sales history of the subject along with listings and contracts and options, blah, blah, blah....I always wondered why. Well, I think I've got the answer.... Read between the lines. Ponder this. First assume, appraisers are too dumb to value a property. They haven't got a clue as to where to start. So they need all the hints they can possibly get so as not to opine an embarassing value....(Prior sales prices, listings, options,etc) I guess we haven't been doing too good of a job because now we need "clues" for three years 8O 8O

There's the best reason for the 3 years sales history I can think of...."value clues" for the clueless

Ben

 

[TC]

I don't really understand the complaints about doing a 3 year history search. I learned years ago as an apprentice to always research the previous sale price of the subject. You used that price as a benchmark. Besides, it takes about 2 seconds to research it.

TC

 

[Ben Vukicevich SRA]

TC,

You're absolutely correct about the 2 second time requirement for prior sales history, if the data is available to you.

But what is the purpose of the sales history??? Waste of time, basically.

You call it a benchmark. I call it a clue. But are they valid, useable benchmarks/clues?

I would have respected the ASB's decision more if they required a prior sales history on the comparables as that's where the subject's market value is derived, not from the prior sale of the subject.

Ben

 

[TC]

Ben,

If I do an appraisal on a property and the owner "estimates" the value at 200K, and I find he paid 150K 13 months ago, I might just think he's reaching for the moon. USPAP as of today does not require that I report prior sales price of 13 months. But shouldn't I, as a thorough appraiser practicing due diligence, research the sales history of the property? Even if it were not a USPAP requirement.? :?:

TC