When is an appraisal not an appraisal?

[Blue1]

Conrad,

That printout you mentioned "a personal Home Market Evaluation" sounds like a typical CMA (Comparative Market Analysis) that the Realtor is supposed to do in trying to come up with a listing price for his/her client. CMA's are generally NOT considered to be appraisals because the Realtor has a vested interest in the property therefore, YOU (as an objective, unbiased, licensed professional) are hired to render a true opinion of value............an appraisal.

 

[Mike Garrett RAA]

Guess what kidlettes! In my state that thing is an appraisal and it is illegal. Our license law says it is illegal for anyone to perform a real property valuation unless they are properly licensed. REALTORS® are exempt when providing such service for a potential listing but they can't charge for it. Certain employees of banks are also exempt when performing valuations within the bank for properties already in the portfolio. Even our county assessors are required to be licensed.

As Stewart Leach, Admistrator of the Colorado Appraisers Board said recently at one of our CAREA meetings....."call it anything you want but if you value the property...it's an appraisal and you are required to comply with the law!" Stewart just became president of the association of state appraisal boards. You will be hearing much more from him in the future.

 

[Conrad]

Thanks for all the comments, I do remember reading in the state statutes that a RE Brokers are exempt and I'm sure this one was looking for a listing.

Conrad

 

[bradellis]

David,

What the form says at the bottom is not appropriate. Since 1999 we have been issuing opinions of value and not estimates. You should certainly be adding wording to you addenda specifying that your conclusions are your opinions and not estimates.

Never let the form drive the work. It is simply a reporting mechanism promulgated by Fannie/Freddie, etc. The wording does not conform to USPAP so you must make the changes.

Brad Ellis, IFA, RAA

 

[Jo Ann Meyer Stratton]

David:
I have the following canned statement in every one of my reports--attempting to be in compliance with the latest USPAP.

"In compliance with USPAP, the term "Estimte the Market Value" in computerized forms shall mean "Opinion of Market Value".

 

[Verne Hebert]

An appraisal is not an appraisal when an "opinion of value", range of value or not, is not provided.



I like Colorado Law!

......and Stewart may be the man to institute Colorado justice!