USPAP actually require appraiser to inspect subject?

[DMZwerg]

Yep, the answer is "NO". Not a grey area, as far as USPAP is concerned.

Your answer reminds me of a quote from Buckaroo Banzai

"Mission Control: Buckaroo, The White House wants to know is everything ok with the alien space craft from Planet 10 or should we just go ahead and destroy Russia?
Buckaroo Banzai: Tell him yes on one and no on two.
Mission Control: Which one was yes, go ahead and destroy Russia... or number 2?"

The wording/context and intent of the question is everything.


Based just on the way the question is worded the only answers can be "Yes" or "Maybe". Here is why:

Ex1 - A supervisor can indicate on form 1004 that he did not inspect
Ex2 - A review appraisal can be performed without inspecting the property

So, there are two of the most prominent examples of an appraisal without inspection. Therefore "Yes" an appraisal can be performed without inspecting the property.


But then there is the rest of the wording and possible implied context:

"If the appraiser has not inspected the subject property nor the comparables, and states precisely that in the appraisal report, can that situation be in compliance with USPAP?"
​

To say unequivocally "Yes" the person answering the question must be certain that they are dealing with the exact same definition of "appraisal report". If the person asking the question is actually talking about a very specific type or form of report based on context (previous sentence not included) or based on more limited experience (such as a mortgage professional speaking specifically about form 1004) then the answer could be different. Thus, without having that context, the answer COULD be "maybe" or "it depends" based on not being certain of the context. Why? In general the answer is "Yes" but if working on a form 1004 the answer is "No" because of the predefined Scope of Work.

I am a mathematician and thus was trained that without a mutually agreed upon definitions answers are often not as absolute as they may appear.

 

[Mike Garrett RAA]

You must be a democrat! Read the question. It asked about USPAP not appraisal report forms such as Fannie Mae 1004.

 

[CANative]

that without a mutually agreed upon definitions answers are often not as absolute as they may appear.

This one line defines the problems in our industry as it exists today. The only ones who may understand it are other appraisers and many appraisers don't even understand it.

 

[Ken B]

Appraiser 1: The sky is blue.
Appraiser 2: What a dufus! Those clouds are white!

In the context of the question, the report CAN be USPAP compliant. USPAP does not require any property be physically inspected. It only requires that the appraiser have adequate information about the property to report credible conclusions about the property.

Everyday case in point: "As is" value for proposed construction given a hypothetical condition that the proposed improvements exist as proposed as of the effective date of the appraisal. It doesn't make any difference what secondary market or client specific requirements may exist regarding physical inspection of a property. If the property, or components of that property, do not exist, no one can physical inspect that property.

And I don't even have a math degree. I've just got an analytical mind and a bit of common sense.

 

[CANative]

The context of the question required a yes or no answer. The only correct answer is yes because the answer cannot be no as it was qualified with "can."

 

[residentialguy]

"If the appraiser has not inspected the subject property nor the comparables, and states precisely that in the appraisal report, can that situation be in compliance with USPAP?"

Yes!

 

[William K]

The question again was

"If the appraiser has not inspected the subject property nor the comparables, and states precisely that in the appraisal report, can that situation be in compliance with USPAP?"

There is only one correct answer to the question as presented.


Reading may be Fundamental, but COMPREHENSION is severely lacking!

 

[residentialguy]

In Lee and Mike's defense, they answered the same way to 2 different questions.

The thread title was
"USPAP actually require appraiser to inspect subject?" NO

Question in thread was
"If the appraiser has not inspected the subject property nor the comparables, and states precisely that in the appraisal report, can that situation be in compliance with USPAP?" YES

William is correct. It is a bit confusing when you ask a two questions and the answer is opposite for each.

Funny read, though.

 

[DMZwerg]

You must be a democrat! Read the question. It asked about USPAP not appraisal report forms such as Fannie Mae 1004.

I read the question, but am pointing out that we have insufficient context.

1) What was the context around the question being asked? Was it part of a discussion in which the definition of "appraisal" was defined or a lone question with no additional context?

2) Who/what is the background of the person asking the question? Are they an appraiser familiar with USPAP or some drone who will make a decision out of context?


A third point is that YOU answered the question OUT OF CONTEXT. Without adding additional context a simple "Yes" or "No" is insufficient. Is your answer:
"Yes, USPAP allows for appraisals without inspection ..."
"No, USPAP does not allow for appraisals without inspection ..."
or some other variation on "yes" or "no"?

An answer of "It depends on the SOW and engagement" is also not necessarily an incorrect answer.

In other words, the context and terminology of the answer is as important as the question as people can misinterpret a question and thus by putting the answer in context still come up with the correct answer.

One person said "Yes" and one said "No" to the same exact question, are they both right?

 

[Mike Garrett RAA]

Who is on first?

For clarification...my answer was to the question...does USPAP require an inspection. No.

Can a report be USPAP compliant with out an inspection? Yes