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USPAP 2006 Online
- Thread starter George Hatch
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Lee Lansford
Elite Member
- Joined
- Mar 29, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Illinois
Steven,
Your most recent post in this string...
RE: "Necessary"...as in "necessary approaches to value"...see the "Scope of Work Rule" in the 2006 USPAP.
Lee
Your most recent post in this string...
RE: "Necessary"...as in "necessary approaches to value"...see the "Scope of Work Rule" in the 2006 USPAP.
Lee
Mr Rex
Elite Member
- Joined
- Jan 12, 2004
- Professional Status
- Certified Residential Appraiser
- State
- North Carolina
Greg Boyd said:
Hes just mad because he needs glasses.
And BTW, how much does a country go for these days? There is a post about a city for sale, but how much for a country? (Oh, I got a good one, involves Monica Lewinski)
CANative
Elite Member
- Joined
- Jun 18, 2003
- Professional Status
- Retired Appraiser
- State
- California
The scope of work is acceptable when it meets or exceeds:
the expectations of parties who are regularly intended users for similar assignments; and
what an appraiser’s peers’ actions would be in performing the same or a similar assignment.
Communication with the client is required to establish most of the information necessary for problem identification. However, the identification of relevant characteristics is a judgment made by the appraiser that requires competency in that type of assignment.
Determining the scope of work is an ongoing process in an assignment. Information or conditions discovered during the course of an assignment might cause the appraiser to reconsider the scope of work.
An appraiser must be prepared to support the decision to exclude any investigation, information, method, or technique that would appear relevant to the client, another intended user, or the appraiser’s peers.
One of the things I was trying to get at is that for almost all Fannie Mae work for single family residences, at least two of the approaches to value are virtually never necessary to develop a credible assignment result.
That being said, if I decide to omit one or both of these approaches is my scope of work decision defensible against:
Clients who reguarly expect that approach (for uses that are not an intended use.)
My (so-called) peers who provide these approaches whether or not they are supported or even supportable for business reasons rather than appraisal reasons.
the expectations of parties who are regularly intended users for similar assignments; and
what an appraiser’s peers’ actions would be in performing the same or a similar assignment.
Communication with the client is required to establish most of the information necessary for problem identification. However, the identification of relevant characteristics is a judgment made by the appraiser that requires competency in that type of assignment.
Determining the scope of work is an ongoing process in an assignment. Information or conditions discovered during the course of an assignment might cause the appraiser to reconsider the scope of work.
An appraiser must be prepared to support the decision to exclude any investigation, information, method, or technique that would appear relevant to the client, another intended user, or the appraiser’s peers.
One of the things I was trying to get at is that for almost all Fannie Mae work for single family residences, at least two of the approaches to value are virtually never necessary to develop a credible assignment result.
That being said, if I decide to omit one or both of these approaches is my scope of work decision defensible against:
Clients who reguarly expect that approach (for uses that are not an intended use.)
My (so-called) peers who provide these approaches whether or not they are supported or even supportable for business reasons rather than appraisal reasons.
CANative
Elite Member
- Joined
- Jun 18, 2003
- Professional Status
- Retired Appraiser
- State
- California
Michael.. It was just a play on the Doc McCoy to Capt. Kirk dialogue whenever Kirk expects medical miracles from McCoy.
Bridgeville is the town you're talking about. It's a couple of hours north of me. The guy is dreaming if he thinks he's going to get a million seven for it.
Bridgeville is the town you're talking about. It's a couple of hours north of me. The guy is dreaming if he thinks he's going to get a million seven for it.
Last edited:
"HUH? Looking at photos only and checking "did inspect" when you never saw the property............thats got little to do with undertanding scope of work...........thats called misleading the user."
Janet,
And that is exactly what the disclosure requirements in the Scope of Work Rule are about - not misleading the intended user. It is as simple as that.
Have a Great Day
JC
Janet,
And that is exactly what the disclosure requirements in the Scope of Work Rule are about - not misleading the intended user. It is as simple as that.
Have a Great Day
JC
Jim Onderisin
Senior Member
- Joined
- Sep 15, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Illinois
My take is the same as Marcia's, I think. Fannie Mae doesn't want appraisers to make assumptions not already stated in the certifications and limiting conditions. Appraisers can make statements about what they did NOT do in order to cover themselves in a situation in which they would normally have made an assumption in the past. But, for the life of me, I cannot see how making any number of statements about what I did or didn't do will be able to keep me from making assumptions about the interior condition and quality of a property which I'm appraising based on an exterior-only inspection.
I think in many ways the "no other assumptions" stance of Fannie Mae is a matter of symantics. I have talked to several at Fannie Mae, and what I have come to understand is that they simply want appraisers to have some source for the data that is used - that's all data, including the condition.
So, my local tax records (or MLS listing or whatever) contain a condition rating. Using a source such as this for the condition is no different than using it for size, room count or any other relevant feature.
What is the difference bewteen stating that one assumes that the condition is average or stating that the condition is average based on the available data? There is no difference, but the latter approach is acceptable to Fannie while the former is not.
JC
So, my local tax records (or MLS listing or whatever) contain a condition rating. Using a source such as this for the condition is no different than using it for size, room count or any other relevant feature.
What is the difference bewteen stating that one assumes that the condition is average or stating that the condition is average based on the available data? There is no difference, but the latter approach is acceptable to Fannie while the former is not.
JC
Marcia Langley
Senior Member
- Joined
- Aug 26, 2005
- Professional Status
- Certified Residential Appraiser
- State
- Missouri
John,
I think there is an important diference between an extraordinary assumption of condition and basing an opinion of condition on available data such as an assessor's code without also using an EA. (Not to mention that assessors often do not see the interior.)
It is acceptable to Fannie Mae for the appraiser to take responsibility (liability) for the accuracy of their data source. It is not acceptable to this appraiser.
I think there is an important diference between an extraordinary assumption of condition and basing an opinion of condition on available data such as an assessor's code without also using an EA. (Not to mention that assessors often do not see the interior.)
It is acceptable to Fannie Mae for the appraiser to take responsibility (liability) for the accuracy of their data source. It is not acceptable to this appraiser.
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