USPAP compliant workfile

[Mike Kennedy]

What is required by USPAP to be in an appraisers workfile?

I save the original order form, sketch, property notes, printout of comparables used(summary) and an electronic copy of the actual submitted report on an external hard drive.

Do some of you formulate the cost approach on your paper file? Include similar comparables that weren't used, extraction methods/adjustment figures, etc?

RECORD KEEPING RULE
An appraiser must prepare a workfile for each appraisal, or appraisal review, or appraisal consulting assignment. A workfile must be in existence prior to the issuance of any report.
A written summary of an oral report must be added to the workfile within a reasonable time after the issuance of the oral report.

292 The workfile must include:
the name of the client and the identity, by name or type, of any other intended users;
true copies of any written reports, documented on any type of media. (A true copy is a replica of the report transmitted to the client. A photocopy or an electronic copy of the entire report transmitted to the client satisfies the requirement of a true copy.);

summaries of all oral reports or testimony, or a transcript of testimony, including the appraiser’s signed and dated certification;

299 all other data, information, and documentation necessary to support the appraiser’s opinions and conclusions and to show compliance with USPAP, or references to the location(s) of such other documentation; and

 a workfile in support of a Restricted Use Appraisal Report must be sufficient for the appraiser to produce a Summary Appraisal Report (for assignments communicated under STANDARDS 2 304 and 8) or an Appraisal Report (for assignments communicated under STANDARD 10).

 

[incognito]

Appraisers in Florida have been disciplined for work files which lacked sufficient contents, including:
-support for all adjustments
-all data utilized in 1004MC analysis and results
-ALL cost approach data, especially depreciation analysis
-sale confirmation proof (who/what/when/where/how)

Certainly some of that can be "recreated", but be careful about conformation data and 1004MC data: That is hard to retroactively create (especially the active listings data)

 

[sharontony]

USPAP has a caveat that in lieu of an exact copy you can keep a reference of where the data is electronically kept and can be retrieved. If you've used a comp a second time, as long as you can retrieve that comp from your database (and the data you used at the time for that comp, presumably in that comp report's workfile). Similar with an MLS, you don't need to keep a copy of the entire MLS, as long as you can reproduce the MLS at a later date (the MLS # in the grid on UAD is sufficient).

 

[gregb]

USPAP has a caveat that in lieu of an exact copy you can keep a reference of where the data is electronically kept and can be retrieved. If you've used a comp a second time, as long as you can retrieve that comp from your database (and the data you used at the time for that comp, presumably in that comp report's workfile). Similar with an MLS, you don't need to keep a copy of the entire MLS, as long as you can reproduce the MLS at a later date (the MLS # in the grid on UAD is sufficient).

Oh really? Where do you keep your notes for the interview with the brokers involved with the sale?

 

[sharontony]

Oh really? Where do you keep your notes for the interview with the brokers involved with the sale?

I type the information directly into a document in my workfile.

 

[Terrel L. Shields]

Well Greg, I guess Sharon told you....

 

[Wm. Hattaway]

AppraisersBlogs had this recently concerning your work file; http://appraisersblogs.com/appraisa...logs+»+Appraisal+news+at+AppraisersBlogs.com)

 

[Wm. Hattaway]

Appraisers in Florida have been disciplined for work files which lacked sufficient contents, including:
-support for all adjustments
-all data utilized in 1004MC analysis and results
-ALL cost approach data, especially depreciation analysis
-sale confirmation proof (who/what/when/where/how)

Certainly some of that can be "recreated", but be careful about conformation data and 1004MC data: That is hard to retroactively create (especially the active listings data)

When I sit in on FREAB meetings the "work file lacking" seems to be the one thing that is always brought up regardless of whatever else was filed against the appraiser.

 

[TxArmadillo]

Appraisers in Florida have been disciplined for work files which lacked sufficient contents, including: <snip>

-sale confirmation proof (who/what/when/where/how)

AppraisersBlogs had this recently concerning your work file; [url]http://appraisersblogs.com/appraisal/how-a-few-key-items-in-your-work-file-can-protect-you-in-court/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+AppraisersBlogsAppraisalNewsAtAppraisersblogscom+%28Appraisers+Blogs+%C2%BB+Appraisal+news+at+AppraisersBlogs.com%29[/URL]

An additional quote from Wm. Hattway's link includes this comment:

"To verify a sale was arms-length, an appraiser confirms the sale with principals of the transaction, if possible, or with the brokers, closing agents, or lenders involved."

I'm sure every appraiser on this forum does this for every comp they use, without exception. We know that our MLS data is suspect and that frequently our local tax information is not correct.


It normally takes a day or two to hear back from brokers and RE agents with the simplest question. I can only imagine their responses when I start digging for even more details about specific sales or purchases.

I guess my questions are: what exactly are you asking the other sources (brokers, closing agents (are the RE Agents), or lenders to provide? Closing date, sales price, concessions? What else do you ask them?

 

[gregb]

I guess my questions are: what exactly are you asking the other sources (brokers, closing agents (are the RE Agents), or lenders to provide? Closing date, sales price, concessions? What else do you ask them?

Good question Tx. After asking the brokers about the positive features of the property, it's nice to let them explain any or everything about their MLS comments that are not clear. Once they get talking, I will ask the broker about anything negative about the property that wasn't mentioned in the listing commentary. Some brokers will give me 1-2 minutes, others as much time as I have for the discussion.