Workfile Contents

[Wade McDonald]

OK,

I lurk mostly and don't bring much to the table discussion wise.

I am in the process of being approved for residential certification in Texas. I have completed all education requirements and passed the exam.

I am in the log audit phase. What is holding up my certification is lack of support in my workfiles. It is a widespread problem as I have been preparing reports/workfiles the same way for a long time. According to the investigator performing the audit my appraisal conclusions themselves are sound, but the workfiles are lacking in support.

He has been extremely helpful in helping me get future workfiles in better shape and I am hopefully nearing certification time.

I am curious if anyone has a workfile checklist for documentation that they would use in support in their workfile? I realize this is a rookie question but I thought up until now I had been doing things right.

Case in point I never thought to provide support for zoning, or specific cost approach pages from handbooks in my workfile. Also I didnt have written down in the file my search criteria for both neighborhood and MC analysis or print out the mc data set itself. There are several other items I had missing as well.

I have been appraising for 9 years and thought I was was doing a pretty good job until recently!

Wade

 

[Metamorphic]

Its really pretty simple.

Your work file should contain all the original data you need to recreate the report.

If you're having trouble, one of the things you might consider doing is stapling together a few sheets of blank paper when you start a file, and take notes of everything you do. Dates, times, search parameters, phone calls. Then, whenever you look at a piece of data from MLS or public record, you can make a PDF print of that and note the name of the pdf in your log. Those electronic records will be part of your workfile, but wont cost you a bunch of ink and paper.

 

[Brian Weaver]

OK,

I lurk mostly and don't bring much to the table discussion wise.

I am in the process of being approved for residential certification in Texas. I have completed all education requirements and passed the exam.

I am in the log audit phase. What is holding up my certification is lack of support in my workfiles. It is a widespread problem as I have been preparing reports/workfiles the same way for a long time. According to the investigator performing the audit my appraisal conclusions themselves are sound, but the workfiles are lacking in support.

He has been extremely helpful in helping me get future workfiles in better shape and I am hopefully nearing certification time.

I am curious if anyone has a workfile checklist for documentation that they would use in support in their workfile? I realize this is a rookie question but I thought up until now I had been doing things right.

Case in point I never thought to provide support for zoning, or specific cost approach pages from handbooks in my workfile. Also I didnt have written down in the file my search criteria for both neighborhood and MC analysis or print out the mc data set itself. There are several other items I had missing as well.

I have been appraising for 9 years and thought I was was doing a pretty good job until recently!

Wade

We don't audit work files in Illinois. No one has ever defined what goes into one. Does Texas have a definition of what the contents of a work file should be?

 

[PropertyEconomics]

To be honest with you the prudent thing for you to do is ask the investigator the items he/she would like to see in a fully documented workfile. It sounds to me like this is a pretty state specific issue and in fact may be an investigator specific issue.

Id go to the source and ask the question.

 

[Mike Kennedy]

Re: I didnt have written down in the file my search criteria for both neighborhood and MC analysis or print out the mc data set itself

Opinion:
The search criteria, and data sources, for Neighborhood MC and Sales Comparison Analysis should already be cited in each report a true copy of which must be retained in the workfile. Suggest that also includes summary results ML, auto data service, and/or assessment pages inclusive of reported sales that were identified but not utilized. Also refer to the SOW Rule and consider Client Assignment Condition(s) which require(s) citation of the data and sources utilized in the report.

IMO, Reviewer should be able to reconstruct based on the info cited in each report supported by "backup" citations in the workfile.

also:

Support for Opinion above:

See Bullets 1, 2, 3, and # 4 "or references to the location(s) of other such documentation"

http://www.USPAP.org/USPAP/frwrd/ETHICS_RULE.htm#record_kpg

further:

http://www.USPAP.org/AO/ao01_10/ao_03.htm

 

[Wade McDonald]

Thanks for the replies everyone. I was curious if anyone had any other items in their workfile that mine are currently missing. The investigator has been very helpful in letting me know what he expected to be in the file which I am now doing. I am now putting into each report my exact search criteria so the results can be reproduced by anyone reviewing.

WM

 

[Metamorphic]

Thanks for the replies everyone. I was curious if anyone had any other items in their workfile that mine are currently missing. The investigator has been very helpful in letting me know what he expected to be in the file which I am now doing. I am now putting into each report my exact search criteria so the results can be reproduced by anyone reviewing.

WM

The fact that the 1004MC does not have a blank that specifically requires you to specify your search parameters is testimony to the lack of qualifications and appraisal savy of the entity that put the form together (along with about a dozen other stupid things on that form). It might be fun to actually put together a proper 1004MC is form. Maybe I'll do it if business gets any slower.

Here's a list of what's in my typical work file:
Field notes and sketch.
All pictures I took (20 or so for a simple property, as many as 50 for a complex, including comps).
PDFs of all MLS and public record data for the Comps.
Excel spread sheets for all the data analysis I did.
Word document with notes from agent verifications.
PDF final of the report.
Screen shots or PDFs of any County GIS data, zoning data, permit data, etc.
PDF of plat map.
PDFs of comp search results.
Hard copies of all MLS data taken into the field with notes on why the property was not used or if it was, what I saw on exterior inspection.

 

[Don Clark]

Thanks for the replies everyone. I was curious if anyone had any other items in their workfile that mine are currently missing. The investigator has been very helpful in letting me know what he expected to be in the file which I am now doing. I am now putting into each report my exact search criteria so the results can be reproduced by anyone reviewing.

WM

Wade,

This is a link to our state Real Estate Appraisal Board news letter. It has a pretty good article on the subject. Might want to print it out. It is in PDF.

http://www.dpor.virginia.gov/dporweb/apr_newsletter_summer2010 - Final.pdf

 

[VegasWayne]

I include everything Metamorphic listed plus the text data files that have the information for the 1004MC. The search parameters can be determined from the data set. Find the minimum and maximum values for the GLA, lot size, bedrooms, bathrooms, year built, and whatever else you used to search and print the result from Excel or Access. The only parameter you need to write down is the boundaries used for the search. I print several reports based on the data I collected from the MLS automatically when I do the 1004MC. These are also in the workfile.

 

[TEL2002]

I used a simple form I created for things like zoning, etc. This way I knew I had covered the item. I would put down who I contacted, & the results of the conversation.

Since I had the cost approach book, I never saw a need to keep a record of the pages I used....I had the book. So if It was 'x' quality, and 'y' condition, I would go to those specific areas of the book.

Everything else I used, I printed out. Everything went into the job folder, even my doodles while waiting on hold for the agent to pick up their phone.