What Do You Consider To Be Data Sources And Verification Sources?

[residentialguy]

So, in conclusion, there is not a standard one can point to that defines verification adequately.

I disagree. It's pretty clear that you verify it with at least one person from that party. If you can't, move on or use it with a grain of salt, disclosing that you didn't verify with anyone in that party.

 

[timd354]

Long story goes with it. OK appraiser did 20 or so similar reports in 3 states. Tort lawyers suing. I was drug into it because I had done a refi appraisal. He was rebutting my value. Two appraisers were paid to sit and watch proceedings and report back to their bank. Second trial was against their client bank in MO. Loaded for bear by sitting in on first trial, they got the guy blown off the trial by the Daubert rule. The other cases were quickly withdrawn and never refiled. Meanwhile the bank filed complaint on him in AR and he surrendered license there.

Even though the guy was dumb enough to exclude all sales where the buyers were from a certain ethnic group in his appraisal reports, it takes stupidity to a whole new level to actually admit that is what he did during court testimony.

 

[Stone]

Right, but FNMA, FHA do specifically address it, though.

What does that have to do with someone supposedly turning this into a commercial thread?

 

[residentialguy]

What does that have to do with someone supposedly turning this into a commercial thread?

Because res work requirements are specific...and this is a res discussion, unless you are doing Fanni/FHA UAD requirements for commercial.

 

[Stone]

Because res work requirements are specific...and this is a res discussion, unless you are doing Fanni/FHA UAD requirements for commercial.

Sorry, I thought I was replying to the OP who also noted there weren't separate USPAPs for both?

Nobody made this about commercial. Commenting occasionally about more general ideas of verification hardly hijacks it away from residential appraisal work.

 

[George Hatch]

This thread is TL;DR, so forgive me if I'm restating something that's already been hammered to death

But

The SOWR lists the 2-part test for the acceptability of SOW decisions

The expectations of the power users for such assignments; and
The typical actions of the appraiser's peers when performing those assignments. "Appraiser's peers" being a defined term that includes competency in that sort of assignment.

The power users demonstrate exactly what their expectations are by what they accept and use, and the appraiser's peers demonstrate exactly what they would do by what they actually do in such assignments.

So,

I daresay that what's appropriate for the type of appraisal someone like Howard Klahr would take to court and do battle with on the witness stand may not be necessary for most users, even though it's entirely necessary for what he's doing in his assignment.

The protocols for personal verification with a principal in the transaction were developed long before it was common for one of those principals directly inputting the information into an MLS or a Loopnet listing, so I would argue that the use of a 1960s protocol as your primary benchmark might be excessive for at least some assignments and/or under certain circumstances.

 

[residentialguy]

The expectations of GSE's are to contact someone from the original transaction party and verify the conditions that made that sale sell like it did....and state boards have slapped your peers for not doing that. MLS is not a verification source...it's a data source

 

[jay trotta]

IMO;
MLS is both verification & data source; it is verification a property has been on the Open Market via a Time Line and provides data regarding marketable properties. An alternate source to support that information can be found at town hall resources and the local Realtor Board; and/or a Seller or Buyer and/or the Agents. I don't know that the, Seller / Buyer or Agent are required to disclose negotiations of a transaction.

 

[Michigan CG]

MLS is both verification & data source;

I completely disagree. My assignment today is for divorce but pretend it is for refinance or purchase. The subject home is on 14 acres with a 2,560 SF pole barn, an obsolete traditional barn and a 1,500 SF home. It is not a common property and I found a sale from 15 months ago that was almost identical. It is 1,800 SF with an inferior condition pole barn that was larger than the subject pole barn. It has a large, old, obsolete traditional barn. The house is almost identical to the subject property house from what I can tell from the MLS and those very "good" pictures.

Verification of the sale discloses the bathroom didn't work (plumbing issues) and that there was no tub which was conveniently left out of the MLS photos. It did report that all flooring in the home needed to go away. It did not show that the home needed significant cosmetic repairs. The MLS didn't state that the old barn needed to be torn down. None of this would be known without verification from the Realtor.

 

[residentialguy]

IMO; MLS is both verification & data source; it is verification a property has been on the Open Market via a Time Line and provides data regarding marketable properties.

Appraisers have to go by FNMA rules and interpretations, not their own.
Here is a list of Fannie Mae's Data sources and a list of Verification sources

Sources of Comparable Market Data
Data and verification source(s) for each comparable sale must be reported on the appraisal report form. Single or multiple sources for data and verifications are acceptable provided the appraiser adequately verifies the comparable sales. The appraiser must state the specific data source and refrain from using broad categories, such as “public records.” Data source(s) must be reliable sources for the area where the subject property is located.
Examples of data sources:

• a multiple listing service,
• deed records,
• tax records,
• realtors,
• builders,
• appraisers,
• appraiser’s files,
• and the Internet.

Information used to verify the data is obtained from a “Verification source.”
Verification sources include:

• the buyer,
• seller,
• listing agent,
• selling agent,
• (and closing documents in certain situations)