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What Appraisers Need Besides A Five Cent Cigar

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Terrel L. Shields

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Arkansas
What the forum needs is a contest for appraisers to submit appraisal templates in a contest to be judged by former or current USPAP instructors. I see the RELO people have such a contest where they invited appraisers to submit reports that are judged on the content and cleverness of the presentation.

The rules would be the winner(s?) can submit templates written in non-proprietary formats (Word, WordPerfect, Excel, Adobe fill in, etc.) which allow the user to input the shortest possible information necessary to comply with Standard 1 and 2-2 and to provide a proper certification and limiting conditions necessary to have this format pass the smell test. The template should explicitly include what steps were bypassed as well as the scope of the report. The "shortest" implies a very compact report is generated in the shortest number of pages and the shortest time necessary to input....

Anyone up to the challenge?
 

J Grant

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Certified Residential Appraiser
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What wold be the purpose or benefit?

Imo what appraisers need is for us to stop fighting and instead pool our talents and resources. Declare a truce and put petty differences aside...not to unionize, which has been a fail, but get behind a group effort to promote appraisals to the public and spread awareness so we stop being invisible, as well as to come up with strategies to offer directly to public and lenders alt short form products and perhaps align with the power players on the net such as Zillow and Trulia.
 

hastalavista

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Professional Status
Certified General Appraiser
State
California
Such a contest would have provide the hypothetical client-type and intended use in order to determine how detailed the content in the report would need to be.
While a hypothetical subject-description would be needed for a specific demonstration, I don't think that'd be necessary for a general report template.
 

Terrel L. Shields

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Certified General Appraiser
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Imo what appraisers need is for us to stop fighting and instead pool our talents and resources
Exactly what I am getting at. I know an appraiser who has a restricted report format, written in Word that he claims meets USPAP. We have at least 3 forumites who have created their own templates using Excel which could (or does) serve as a base for creating a simple USPAP compliant report that can or does serve as a substitute for "evaluations". Since we cannot beat them, then join 'em. If people provided samples so that we have a open source template free to all appraisers that can compete with the evaluations as best possible, then we can take back the evaluation business.

Further, such formats would usually serve the general public who only wants to "know what it is worth". Face it. If the banks and AMCs have their way, they are going to force you to use their proprietary on line programs, leaving you without any real work file, and for the software vendors, what are they going to sell in the future with 50% less appraisers? How many of us have gotten rid of software already? I've owned none for 3 years now. I don't miss it.

If we have free templates that are USPAP compliant we can work outside the AMC box, outside the vendor structure, and do so at the most economical way.

There are a lot of things we don't take advantage of because we have to create these templates ourselves. The vendors are attuned to the bank and secondary market formats. Think how many evaluations you can do with a restricted appraisal report form that is say only four or five pages long compared to the "non-lender" form I used that basically required you to tailor make your limiting conditions and pick thru dozens of forms trying to mix and match a format for the job at hand and ending up saving a handful of pages at most and still cranking out a 20 page report.
 

Meandering

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Feb 26, 2006
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Real Estate Agent or Broker
State
Pennsylvania
What the forum needs is a contest for appraisers to submit appraisal templates in a contest to be judged by former or current USPAP instructors. I see the RELO people have such a contest where they invited appraisers to submit reports that are judged on the content and cleverness of the presentation.

The rules would be the winner(s?) can submit templates written in non-proprietary formats (Word, WordPerfect, Excel, Adobe fill in, etc.) which allow the user to input the shortest possible information necessary to comply with Standard 1 and 2-2 and to provide a proper certification and limiting conditions necessary to have this format pass the smell test. The template should explicitly include what steps were bypassed as well as the scope of the report. The "shortest" implies a very compact report is generated in the shortest number of pages and the shortest time necessary to input....

Anyone up to the challenge?

Commercial or Residential?

Are there concerns some Artificial Intelligence wanna be AMC/Evaluator would steal the format?

.
 

Terrel L. Shields

Elite Member
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Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Are there concerns some Artificial Intelligence wanna be AMC/Evaluator would steal the format?
If written is say Adobe with the fill in feature or Word (which can be set up with radio buttons etc. and drop down menus) then how would anyone successfully copyright it once it is placed on the forum for all to use? Excel is another vehicle for such use. I was very intrigued by this Word program and how it has each section as a simple touchstone for each point in USPAP. It is limited but it is the limiting conditions that we often overlook when attempting to short form something.

Remember we have been taught a system, the banker/secondary market system, where descriptions are formalized. But USPAP does not require these, bankers do. We don't even have to have photographs (or technically, we all are using digital images not photographs). The homeowner knows WTF his own house looks like. We don't need any great explanation. We only need to value the property. The same with some legal issues, although for IRS purposes the IRS has some explicit rules even though they rarely audit appraisals. They are not fond of Restricted reports, for instance. But a restricted report can serve for evaluations, estate settlements, or marketing.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Restricted reports only restrict the use of the report, and the users to a single user.

Here are the side by side, Standard 2 reporting differneces between the Appraisal Report and the Restricted Use Report. The Restricted Use reporting requirement is the second entry for each line item. And please note for item iii, when the client is not the owner, how can you state sufficinet information so that the client is not "mislead"?

(i) state the identity of the client and any intended users, by name or type;
(i) state the identity of the client, by name or type; and state a prominent use restriction
that limits use of the report to the client and warns that the rationale for how the
appraiser arrived at the opinions and conclusions set forth in the report may not be
understood properly without additional information in the appraiser’s workfile;

(iii) summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal, and economic property characteristics relevant to the
assignment;
(iii) state information sufficient to identify the real estate involved in the appraisal;

(vii) summarize the scope of work used to develop the appraisal
(vii) state the scope of work used to develop the appraisal

(viii) summarize the information analyzed, the appraisal methods and techniques employed,
and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the
sales comparison approach, cost approach, or income approach must be explained;

(viii) state the appraisal methods and techniques employed, state the value opinion(s) and
conclusion(s) reached, and reference the workfile; exclusion of the sales comparison
approach, cost approach, or income approach must be explained;


(x) when an opinion of highest and best use was developed by the appraiser, summarize the
support and rationale for that opinion;
(x) when an opinion of highest and best use was developed by the appraiser, state that
opinion;

Not enough differences in reporting requirements to warrant a new format.

and,

Comment: When the intended users include parties other than the client, an Appraisal Report
must be provided. When the intended users do not include parties other than the client, a
Restricted Appraisal Report may be provided.

Once you have a middleman AMC, you no longer have a single client/intended user. You then have the client, and the bank. Restricted Use is not therefore allowed.

.
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
In all seriousness, I think you make a great point here Terrel:
Remember we have been taught a system, the banker/secondary market system, where descriptions are formalized. But USPAP does not require these, bankers do. We don't even have to have photographs (or technically, we all are using digital images not photographs). The homeowner knows WTF his own house looks like. We don't need any great explanation. We only need to value the property.
Many of my private clients pretty much say this when I ask what they "need/want" in their report (i.e. photos, descriptions, etc) "I know what my house looks like, I don't need pics of everything/at all" ... I use the GPAR form since I've never written a narrative report nor Restricted, so I can't speak to those. But there are times when I feel the "report" is overkill for the Intended Use but it at least lets me comply with USPAP.
 

ucbruin

Elite Member
Joined
Mar 11, 2014
Professional Status
Certified Residential Appraiser
State
Massachusetts
You guys are speaking Greek to me....
 
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