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USPAP 2003 & Recerts of Value

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Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
I know I'll be going to a seminar in the next few
months and the instructor will tell me about the
new requirements and I'll throw a few lines in
my two page recert letter & certification....but
until then, can someone paste what they think
the new language is?

In the next few weeks, there will be someone who
calls and says, "I just need a recert on that
appraisal you did six months ago." I just want
to get it right for the USPAP police.

elliott
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Elliot:

Ten lashes with a wet noodle for being AWOL...

This has only been hashed over eight or nine times in the general forum....

Try a search, hon!
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
And another ten lashes for using the word "recert"!!! Check out Advisory Opinion 3 in the USPAP 2003 that is posted on the Appraisal Foundation website:

http://www.appraisalfoundation.org/html/US...PAP2003/toc.htm

Also do you have a copy of Fannie Mae's guidelines that went into effect 6/30/2002? Section 201 - Age of Appraisal. Which brings Fannie Mae guidelines up to the speed on the changes in the 1995 USPAP--after seven years! However, USPAP 2003 changes things again, making Fannie Mae's latest guidelines back to being behind the times. You can access Fannie Mae's guidelines through http://www.naifa.com
Search for links, then access the Adfinet site, you have to register and then it is free, can access all sorts of information.

And again, as always (mainly because I am looking for feedback to improve my reports) I do have a tenative template for a new letter that I am attempting to get into compliance with the 2003 USPAP, that I will email a pdf file to anyone that requests one. Looking for all the help and assistance I can get to arrive at the correct wording--and compliance. It is definitely NOT the final word--only a suggestion!

[email protected]
 

Austin

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Virginia
One of the most knowledgeable authorities on USPAP interpretation and a person that actually passed the test on version 2003, use to frequent this forum, but the last I heard the North Carolina Appraisal Board, none of whom possess the most rudimentary understanding of the subject, are revoking his license for one year because they interpret USPAP differently than our knowledgeable friend does. As a matter of fact, an administrative law judge totally greed with our knowledgeable friend and cleared him of all charges, but again, the NCAB over ruled the judge and is revoking his license to practice anyway. Does that make sense? Do a search on that one. I am going to wait for the NCAB’s interpretation of things before I stick my neck out. I want to be sure and do it the way the bubba boys do it.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
Wow, that's a big document....since I don't know the
correct word for 'recert', could you'll direct me to
the relevent section?

And why does USPAP talk so much about acceptable
AVMs by appraisers, yet AVMs get by without
meeting USPAP. I'm thinking of setting up a company
with my dog as the owner and he can provide values
for $50 based on my nuerolinguistic computer program
(over 4 megs of code, unforunately undocumented).

elliott
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Elliot: Read Advisory Opinion 3 and the definitions will be explained. Also read Fannie Mae's Section 201.
 

Austin

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Virginia
Speaking of USPAP questions, something just popped up here. I am doing an appraisal on a medical office building. I did the inspection and dated the appraisal December 30, 2002, and the report is dated January 3, 2003. Now, which version of USPAP am I bound by? Does the appraisal have to conform to 2002 and the report to 2003 version? What is the rule when the appraisal is dated under the reign of one version and the report is dated under the reign of an updated USPAP version? Why do things like this always happen to me?
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
:lol: :lol:

Austin you are jes' lucky I guess!

I ran into that and asked three board members sitting in a USPAP class :twisted: They opined that to be safe you should adhere to the rules in the signature year, but that since a very STRONG arguement could be made that the effective date of the appraisal is the one which carries the weight. So while you probably could not be hung in court for the rules using effective date, to CYA it would be best to go with the more recent set.

:!: diffrent state remember: your rooles may vary
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Also it depends on the date that your state adopts the 2003 USPAP!
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
OK, here is what I typically do for a recert.....what should be
added to make it USPAP 2003 compliant. Where am I suppose
to put the word 'intended'?

elliott


First Indiana Bank

Re: Recertification of Value
zzz 3rd Avenue, zzz
Re: BorrowerX

Dear Ms. zzz:

The following information is offered at your request, and in conformance with Advisory Opinion G-3, as it relates to the Uniform Standards of Professional Practice, issued by the Appraisal Standards Board of the Appraisal Foundation. This recertification of value is to be used only in conjunction with the original appraisal report and any prior updates.

On August 24, 2001, the fee simple rights to the property located at zzz 3rd Avenue, were appraised by elliott, SRA. Please refer to that report for the physical description of the subject, its site and neighborhood description, the highest and best use analysis, etc. You are also referred to the analysis, reconciliation and conclusions found in the report, as well as assumptions and limiting conditions, value definition, and addenda. Unless otherwise noted, the information and analysis contained in the original report is reflective of the subject currently.

The purpose of this Limited Appraisal is to verify that the value of the subject property has not declined since the date of the original appraisal referenced above. As of January 3, 2003,

x The subject's value HAS NOT declined since the date of the original appraisal.

This update can only be relied upon by a reader familiar with the original report and any prior Updates, and should only be reviewed in the context of the original appraisal and any prior Updates. Refer to the original appraisal report for the property interest appraised, definition of value to be estimated, highest and best use of the real estate and any other specific file information used in support of the value conclusion.

The three approaches to value have been considered, analyzed, and applied in the collection of data utilized in this Update and in the preparation of this report. Unless noted elsewhere in this report, the analysis was limited to review of the data used in the original report and comparable sales activity since the date of the original report in order to establish current market conditions and trends. The Cost and Income Approaches were not considered relevant to this assignment and are not utilized unless otherwise specified.

Support for the value conclusion relies on the sale at XYZ 4th Avenue for $90,000 on January 1, 2003.....etc.

The Limiting Conditions and Certification attached to the original appraisal report are still in effective. This is a Limited Appraisal/Restricted Appraisal Report, as defined by the Uniform Standards of Professional Appraisal Practice. This assignment departments from specific guidelines under Standard Rule 1-4(a) and (B) i, ii, iv, v, and vi.

Sincerely,

/s/ elliott, SRA


Page 2

Recertification of Value 0
Recertification of Appraised Value


This Recertification can only be relied upon by a reader familiar with the original appraisal report and any prior updates to that report.

Refer to the original appraisal report for the following items:

The real property interest is noted on the original report.
The definition of the value to be estimated is in the original report.
The assumption and limiting conditions that affect the analyses, opinions, and conclusions are the same as those in the original report.

In addition,
The approaches to value that have been considered, analyzed, and applied in this Recertification are consistent with the preparation and conclusions of the original appraisal report, unless otherwise noted.

The limiting conditions and certification attached the appraisal report are still in effect if this Recertification is done by the original appraisal.

Purpose: Recertification of Appraised value is a Limited Appraisal performed to confirm whether the improvements and market conditions at the time of this inspection are consistent with statements in the earlier appraisal that was made subject to competition or satisfaction of a condition.

Conditions of the Recertification of Appraised Value: This Recertification is incomplete unless the following conditions are met:

Market conditions and sales data as of the date of this certification are essentially the same or similar to that of the original appraisal.

Primary research for this report was based on sales data relevant to the subject property as of the date of this inspection in order to confirm the statements and conclusions of the original appraisal report. The Cost and Income Approaches are considered relevant to this assignment only if utilized in the original appraisal report.

The value conclusion of the original appraisal is still supportable unless otherwise noted.

The data sources for this Recertification are the same as those used in the original appraisal.

The Recertification of Appraised Value is effective as of the original date of the appraisal. The Recertification of Appraised Value does not change the effective date of the appraisal.

This is a Limited Appraisal/Restricted Appraisal Report as defined by the Uniform Standards of Professional Appraisal Practice. This assignment departs from specific guidelines under Standards Rule 1-4(a) and (B) i, ii, iv, v and vi.


/s/ elliott, SRA
 
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