Would Adding A 1004mc To A Completed Appraisal Comply With USPAP?

[Tom4value]

Eli, you and some of the others are not thinking of and using the term "Scope of Work" correctly.

Assignment conditions: "The clients wants this, that and the other thing in addition to the regular stuff."

Scope of work: "I did this, this, this and this while developing and reporting the appraisal including the clients specific assignment conditions."

(Sigh) we know that! We agree!!!!!

On the same token, you would not tell the client, “I not do those conditions. I will do the assignment my way because I set the scope of work, not you.”

That was my point.

 

[Have Laser-Will Travel]

you let the client determine the SOW?

Just dropping in?

 

[Deleted member 128537]

A 1004MC is not increasing the scope of work. It’s just adding a form. As to the problem of the 1004MC differing than the general market conditions I find it happens all the time. That’s why I always include more information. I include an analysis of all sales in the market area, and then I include a 10 year summary with quarterly sales to show market direction in a general sense. And I will add comment regarding certain segments of the market where my subject falls. For example there may be a general over supply of properties, but in a certain price range there isn’t. Or vice versa.

 

[Eli]

A 1004MC is not increasing the scope of work. It’s just adding a form. As to the problem of the 1004MC differing than the general market conditions I find it happens all the time. That’s why I always include more information. I include an analysis of all sales in the market area, and then I include a 10 year summary with quarterly sales to show market direction in a general sense. And I will add comment regarding certain segments of the market where my subject falls. For example there may be a general over supply of properties, but in a certain price range there isn’t. Or vice versa.

Yes, your comparing apples to apples. We don’t even know the client here unless I missed it. From a market value standpoint?? Reporting is the key.

l tell people all the time that the inspection is the easy part. I enjoy the inspection part. It is the easy part. It helps me on both internal and external factors. I am very skilled in my market. It still helps because things change constantly .

 

[Eli]

Remember market value is a very unique definition.

 

[CANative]

(Sigh) we know that! We agree!!!!!

On the same token, you would not tell the client, “I not do those conditions. I will do the assignment my way because I set the scope of work, not you.”

That was my point.

That's a non sequitur. But if it lets you out of this thread with some dignity still intact then I guess that's as good a non sequitur as any.

 

[CANative]

Remember market value is a very unique definition.

There is no such thing as "very unique." Something is either unique or it is not.

 

[VALU8]

I've seen this a time or two when the AMC just kinda fires it out quickly and doesn't fill out the specifics of what they want...Only to ask for it later. It shouldn't really be a big deal unless you find evidence CONTRARY to what you established in your appraisal while doing the 1004mc (IE a loss in value over the past 12 months rather than a gain, etc)

I'd say take the short amount of time to do it and don't make a big stink if its just once. If it's more than once you might wanna talk about how much they're paying you.


IMHO the 1004mc is always a good idea just to get an idea of whats going on in the area- but it's like using a hacksaw for surgery rather than a scalpel. Unless you're using broadly defined search parameters you're probably only getting 2-5 data points in the most recent 90 days... That's super easy to skew data due to extremes in the sample. Like, you're doing an area that has 85 year old houses that have almost all been remodeled, you have 6 sold in the last 90 days, but there's always that one that sold for $150k less than all the others because it's not been redone, that'll throw some numbers off.

 

[The Bob]

You, like the mosquito, are totally missing my point. I am telling you, like I told Mr. Buzbuz many times, I know ultimately when performing the assignment we set the scope of work. But how to we determine that?

USPAP says that step #1 is to “identify the problem to be solved”. To do that, we find out what the client wants. If they say, “I want an appraisal done with a full inspection, using any and all approaches to value that are applicable, to arrive at an opinion of market value that is supportable and credible.”, they are telling us the scope of work they want for the assignment. We would agree that this is reasonable and proceed with the assignment, indicating in the report the scope of work we did for the assignment. In this case, the appraiser and the client are setting the scope of work.

They may want some different scope of work (exterior only, do not develop an approach that may be applicable but not necessary for credible results, etc.). If we determine that what they want could be done in conformance with USPAP we would not refuse to do it because simply we determine the scope of work, right? That is what I mean by the client determining the scope of work. Give the client what the want as long as we confirm to USPAP.

OK, I think I see where what you are saying is different from what Can and Tres are saying.

Client wants full inspection. Ok, now what exactly are you doing? That would be in your SOW...a couple of examples...

"I observed both the interior and exterior of the subject as a casual observer might. I did not observe any non-livable areas nor did I move object's or furniture where they may have limited my observation"

For FHA it might be "I inspected the subject property based on the inspection protocol outlined on the HUD Single Family Housing Handbook 4000.1 including at least a head & shoulders inspection of the attic and crawl space"

 

[Tom4value]

That's a non sequitur. But if it lets you out of this thread with some dignity still intact then I guess that's as good a non sequitur as any.

Thank you. I was feeling depressed that you were incapable of following. I feel better now.