USPAP class for the thirteenth time

[Terrel L. Shields]

What harm or infringement on appraiser profitability do you think this sales history requirement adding?

When it takes 10 minutes to track down a 3-year-old MLS listing or call some agent who probably doesn't remember the circumstance of that sale, and then what? 10 minutes - 10,000 appraisals in a 30 year career is 100,000 minutes - So 9-10 months of your working life spent researching something that almost never has an impact upon value? If the title company was doing it - it was billable hours. Appraisers - nope - just walk on them. They're right, you're wrong...roll over play dead or I hit you with another 2 x 4.

 

[George Hatch]

Why would you need to verify anything about a 3yr old listing? You have it in hand and you can see how the property was marketed. What else do you need? "Verification" isn't what the standard requires. If this were a question on the test your response would be incorrect.

Not to mention that most of your subject properties don't have a recent prior sale or listing so that cuts into your math right there.

The only times I have ever spent longer on a prior listing or sale than a couple minutes is when my current values are widely different than there's which is when I get curious about the reasons why. A couple times a month, maybe? The property has since been remodeled, or the listing was only active for a couple weeks which is less than would normally have been sufficient for that property type.

The question remains outstanding - how does this requirement or any other in USPAP render an appraiser significantly uncompetitive with an evaluation on a non-residential property? Because that's been your big talking point for years, and it's been on the reasoning-free basis all along.

 

[Terrel L. Shields]

required to analyze and report all sales of the subject property that occurred within the past three years prior to the effective date of the appraisal,

And FHA also used to require 3 year history on comps - I think that changed but I haven't done FHA in 20 years.

 

[George Hatch]

So, analyze. The analysis is in relation to the current value. It doesn't say anything about appraising that prior sale against comps as of that date. Most of the time the reasons for any changes between then and now will be obvious and will not require looking any further than the market analysis. Once in a while "market trends" is not the answer and warrants more inquiry.

You should just let this one go; the sales history disclosure/analysis isn't the reason for the difference between a $500 eval fee vs a $1500 or $2000 or $3500 appraisal fee. The main reason most appraisers aren't doing evals because it's not profitable to do them when compared to what they normally sell.

The appraisers who do think there's some big difference in the SOW or the reporting aren't thinking that through. If the lender thinks the broker's SOW and reporting was sufficient for theat use then that same SOW and report content doesn't somehow become "not-meaningful" just because an appraiser did it and added the requisite boilerplate covering their assumptions and limitations. If an appraiser thinks the 100-pg narrative is the only real appraisal that can be considered USPAP compliant then that's their own fault for being stupid. Really stupid.

 

[Mejappz]

required to analyze and report all sales of the subject property that occurred within the past three years prior to the effective date of the appraisal,

And FHA also used to require 3 year history on comps - I think that changed but I haven't done FHA in 20 years.

I mentioned this a couple of years ago, but there’s a Certified USPAP Instructor and MAI in Tennessee who focuses exclusively on evaluations. I believe Tiffany also mentioned an appraiser who advised her to start completing evaluations instead of appraisals. The reasons for this shift are pretty clear.

 

[Terrel L. Shields]

mentioned this a couple of years ago

 

[George Hatch]

I mentioned this a couple of years ago, but there’s a Certified USPAP Instructor and MAI in Tennessee who focuses exclusively on evaluations. I believe Tiffany also mentioned an appraiser who advised her to start completing evaluations instead of appraisals. The reasons for this shift are pretty clear.

I've heard and completely believe the same anecdotes. I am just commenting that there's no difference between a SOW when a broker uses it vs an experienced appraiser uses it. Except that the appraiser is a lot more practiced and efficient with the process and can do the same in less time than the broker.

I know a couple MAIs in this region who only appraise SFRs on 1004s. Not because they can't do anything else but because that's the kind of work and the kind of work flow they prefer. I have a lot of experience with and am perfectly capable of dropping 150-pg narratives upon command, but I rarely do that kind of work because I don't enjoy it. I am not voluntarily spending a week on any appraisal assignment.

 

[djd09]

3 things about prior history...
1. it clearly would fall under the SOW rule and can be erase from USPAP
2. with a rigged market analyzing fraud is impossible
3. and our new competitors, the mortgage brokers, aren't required to analyze prior sales

 

[djd09]

appraisers...

 

[Fernando]

In regards to the title of the thread, my last USPAP class was on Zoom (McKissock). I was doing a play-by-play analysis here on the AF. One appraiser got pretty upset about it and questioned my dedication to the profession.

The USPAP instructor was singing Vaudeville tunes for Christ's sake.... was lost on the questions being typed to him, spent 10 minutes trying to help some poor hapless attendee turn on their speakers. I was ready to throw my computer against the wall.....

Was the instructor George?