What kind of assignment is?

[Lawrence R.]

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.

(my red)

Could a realtor do it? would it be legal for a Broker to provide the analysis requested. I say yes. So, again, there are to many terms like must, and always in the comment I posted to say that this is a wider net than the one actually cast...

 

[Michigan CG]

Standards Rule 5-2 (b):
state the analysis, recommendation or opinion developed;

Standards Rule 2-2 (b) (v): State the type and definition of value......

Standard 5 lets you report a recommendation or opinion, Standard 2 wants a value.

In Standard 5-2 I can summarize my report by saying "At this point in time I do not recommend building a subdivision."

Standard 2-2 wants a value on that hypothetical subdivision.

 

[Michigan CG]

see post 7 guys.

Yes, you are correct, BUT to report your assignment results it falls under Standard 5-2, consulting.

 

[Lawrence R.]

Maybe we are both right.

I am making the assumption like this:

After all is said and done, the analysis would be something like this. Of course, there would be much data and graphs, etc...

At this point in time, supply exceeds demand for SFR's by a margin of 21%. there is evidence that large homes comprise the majority of this excess. homes from ______to ______ have a supply/demand ratio of _____,while homes from _____ to _____ have this.

Certain areas, such as Southwest ___________, are exempt from this ratio, as supply and demand seem to be in balance.


I don't see where any recommendation, or valuation or a conclusion based on an OPINION of value has been made.

Is this the type of analysis you are referring to? the OP left this a little wide open, and I think we both managed to come in side by side.

 

[Michigan CG]

Yes, exactly....according to AO 21 above the person doing this analysis is performing appraisal practice, gathering and summarizing data (acting as an appraiser) therefore the assignment would be reported under Standards Rule 5-2 (b). This is a consulting assignment and a specific value does not need to be included.

 

[Lawrence R.]

Cool. Gotcha.