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What kind of assignment is?

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jorge borges

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If My costumer asked me to prepare a market study ( analyzed supply and demand for housing) but will not include a value estimate.
What kind of assignment is it?
 

dobie

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Oct 26, 2003
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OK I'll take a shot.

Is there a specific property involved or did the customer just ask you to provide some analysis of supply/demand in a particular market? And why do you need a value estimate anyway??
 

Lawrence R.

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South Carolina
This may fall under the umbrella of valuation services, but if you are not appraising specific property rights, then you are not communicating an appraisal.

USPAP can't reach this far.
 

Lawrence R.

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Professional Status
Certified General Appraiser
State
South Carolina
If My costumer asked me to prepare a market study ( analyzed supply and demand for housing) but will not include a value estimate.
What kind of assignment is it?

Btw, you wear so many costumes that you have your own costumer?

Wow.:rof:
 

Michigan CG

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It is Appraisal Consulting. See Standards Rule 4-2 (e).
 

Lawrence R.

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Professional Status
Certified General Appraiser
State
South Carolina
I hate to quibble, but I disagree.

Comment: Real property appraisal consulting assignments encompass a wide variety of problems to be solved. However, the purpose of an assignment under this STANDARD is always to develop, without advocacy, an analysis, recommendation, or opinion where at least one opinion of value is a component of the analysis leading to the assignment results.

I don't see that in this case.
 

Mike Kennedy

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Professional Status
Certified Residential Appraiser
State
New York
market study ( analyzed supply and demand for housing) but will not include a value estimate.



USPAP AO-21


  1. What is the relationship between Valuation Services and Appraisal Practice?
A key to distinguishing an appraiser’s obligations is understanding the relationship between “valuation services” and “appraisal practice” in USPAP. Appraisal practice is a subset of valuation services.


“Valuation services” are services pertaining to aspects of property value. Appraisers and others for whom value is an issue provide valuation services. Examples include appraisal, brokerage, auctioning, property management, advocate consulting, appraisal consulting and collecting market data.

“Appraisal practice” is defined as valuation services performed by an individual acting as an appraiser. Only appraisers may offer services that are considered appraisal practice. Examples include appraisal, appraisal consulting, and collecting market data (acting as an appraiser).

Since USPAP obligations apply to those who are acting as appraisers, USPAP applies to appraisal practice.
 

Michigan CG

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Michigan
Comment: Real property appraisal consulting assignments encompass a wide variety of problems to be solved. However, the purpose of an assignment under this STANDARD is always to develop, without advocacy, an analysis, recommendation, or opinion where at least one opinion of value is a component of the analysis leading to the assignment results.

I don't see that in this case.

:flowers:I hate to prove you wrong but......an opinion of value is very vague from what you have quoted, as it should be, an opinion of value can be that the neighborhood is stable, or that values are increasing. That is an opinion even though it is not property specific.

A consulting assignment could be for a developer who wants to build a subdivision but is not sure about the local economy. Appraiser does a consulting assignment and determines that it is HIS OPINION that values are declining....statement of opinion, an appraisal, not a specific value, not a specific property.
....Standards Rule 4 is development....you then follow Standard 5 for reporting....

Standards Rule 5-2


The content of each written real property appraisal consulting report must be consistent with the intended use of the appraisal consulting assignment results and, at a minimum:



(a)
state the identity of the client and any intended users, by name or type;(note54)



Comment: An appraiser must use care when identifying the client to ensure a clear understanding and to avoid violations of the Confidentiality section of the ETHICS RULE. In those rare instances where the client wishes to remain anonymous, an appraiser must still document the identity of the client in the workfile, but may omit the client’s identity in the report.

Intended users of the report might include parties such as lenders, employees of government agencies, partners of a client, and a client’s attorney and accountant.

(b)
state the analysis, recommendation or opinion developed;




(c)
state the intended use of the appraisal consulting assignment;(note55)



(d)
state information sufficient to identify the real property pertinent to the appraisal consulting assignment, and state the physical, legal, and economic characteristics of the property, properties, property types, or market area pertinent to the assignment;(note56)



(e)
state the effective date of the appraisal consulting assignment results, the date of appraisal pertinent to each opinion of value used in an analysis in support of the appraisal consulting results, and the date of the appraisal consulting report;(note57)



(f)
state the scope of work used to develop the assignment results;(note58)




Comment: Because intended users’ reliance on assignment results may be affected by the scope of work, the report must enable them to be properly informed and not misled. Sufficient information includes disclosure of research and analyses performed and might also include disclosure of research and analyses not performed.



When any portion of the work involves significant real property appraisal or appraisal consulting assistance, the appraisal consultant must describe the extent of that assistance. The signing consulting appraiser must also state the name(s) of those providing significant real property appraisal or appraisal consulting assistance in the certification, in accordance with Standards Rule 5-3.(note59)



(g)
summarize the information used in the appraisal consulting analyses, the appraisal consulting methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions;



Comment: If the value opinion used in the appraisal consulting assignment was not performed by the consulting appraiser, the appraisal consulting report must include:

the information required in Standards Rule 3-2, or

a statement of the appraisal review results, and a reference to the appraisal review documentation retained in the appraisal consultant’s appraisal consulting assignment workfile, or

a statement supporting the use of that appraisal as an extraordinary assumption in the appraisal consulting assignment.

If an opinion of value was developed by the consulting appraiser, the appraisal consulting report must include the information required to comply with Standards Rule 2-2(a) or (b)(ii) through (x). Standards Rule 2-2(c)(ii) through (x) is also permitted if the client is the only intended user of the assignment results.



(h)
state the appraiser’s appraisal consulting recommendations (if any), and conclusions or opinions;


(i)
clearly and conspicuously:

state all extraordinary assumptions and hypothetical conditions; and

state that their use might have affected the assignment results; and

(j)
include a signed certification in accordance with Standards Rule 5-3.
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
I am sticking to my guns on this one. If there is no opinion of value as a component of the analysis, I think it falls outside the scope.

I may be wrong, according to you, but that wasn't compelling enough for me. If I capitulated every time USPAP contradicted itself, I would have absolutely no basis by which to appraise anything.
 
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