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

[Ben Vukicevich SRA]

TC,

I really don't care what the owner paid for the property 13 months ago or three years ago. He may have underpaid or overpaid or be involved in flipping, whatever.

We're paid to appraise, not appease via clues.

You would have liked my old boss at the S&L, the pres...he would NEVER give the sale price of the subject to the appraiser. He paid you to appraise....no clues given....

Ben

 

[Bemis Pownall]

Just finished a review from a report written in Sept '02.
AppraiserS failed to mention subject was purchased in December '01.
Prior sale $700,000, Refie appraisal value $650,000. Wouldnt mentioning the prior sale have made this a much better report??
"We are also giving weight to the recent purchase of the subject...XXXX"

If appraisers arent mentioning a 1 year history why would they start mentioning a 3 year history???

:morning:

 

[Tim Hicks (Texas)]

I am appraising a home today that already had an appraisal. The appraiser is not on the "approved list". This home was listed for almost a year at $235,000 and lower to $225,000 until September. The other appraisal shows a market value of $285,000 with no mention of prior listings. This is the best reason why the word current should be taken out of the verbage. Oh, you can't sell your house for $225,000, but you can refi it for $285,000. The home owner told me "I better get that value". I told them I would do the best job I can. I use that sentence quite a bit. It sounds better than "There is not a chance in hell."

 

[Jo Ann Meyer Stratton]

Tim: Read Advisory Opinion 1 and take heart! First paragraph "obligate appraisers of real property to analyze and report pending and recent agreements, options, listings, and sales involving the property being appraised." Later on it switches back to current as of the effective date. Then the last paragraph under Advice from the ASB on the issue: The requirement for the appraiser to analyze and report sales history and related information is fundamental to the appraisal process. So within the Advisory Opinion switches back and forth between current and recent---so go for the "gold"-- recent history (withing 3 years)!

 

[Bemis Pownall]

Had one this week,
listed, vacant, HO lives out of state.

Tells me he has 3 appraisers in town who will hit the #($520,000)
Listed $499.......needs $520

I asked "how will I explain to the Underwritter why Im bringing it in higher then list price??"

He says well it was listed for $550.. a few months back.

I kept quite didnt want to kill my deal...

Still listed...

:morning:

 

[bradellis]

Ann,

Note this part of AO-1,

"The requirement for the appraiser to analyze and report sales history and related information is fundamental to the appraisal process."

Needs to be analyzed AND reported.

Brad Ellis, IFA, RAA

 

[Jo Ann Meyer Stratton]

Printing out 2003 USPAP section by section over the next few days. Will be taking a USPAP class ASAP when one is offered in the Phoenix/Tucson area--where I will get an official printed copy--in the mean time I want something on my desk!

Anyway--Statement 10 E. Analysis Issues: 6. Failing to analyze a current option, or listing of the property being appraised; and failing to identify and analyze all prior sales of the subject property (within required time frames), which may facilitate "land file" deals.

The time frames cited in Standards Rule 1-5(b) are minimums. If market activity concerning the subject property from prior periods is known and relevant, it should also be analyzed and addressed. The requirement is for an analysis of sales that occurred in the minimum time frame, not just the most recent sale. ------If relevant and necessary to a proper understanding of the sale, the conditions of sale and the property condition at sale must be reported.