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

[TRESinc]

SOW is only incidentally defined but compliance with FNMA and USPAP is stipulated.

you let the client determine the SOW?

 

[Tom4value]

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Should the SOW be included verbatim in the Engagement? (Among other things that confuse me is that the SOW appears tantamount to a "contract," but if so, how can the SOW be a living document throughout the course of an assignment, if the client fails to have an opportunity to agree to subsequent changes?)

I do think the SOW should be in the engagement letter.

As to if the client can make changes to the SOW, yes, with your approval. Can they change the SOW? Depends but probably not.

I remember way back in appraisal school (back when you actually went to a “class”), the proctor addressed this by saying, “ you go to a breakfast place and order an egg sunnyside up. You change your mind and want it sunnyside down, still an egg. You then say scramble it. Still an egg. You then say put cheese and onions, and mushrooms in it. You now want an omelette.”

 

[Tom4value]

you let the client determine the SOW?

Of course you do! All you do is decide if what they want is USPAP compliant.

 

[CANative]

 

[TRESinc]

Of course you do! All you do is decide if what they want is USPAP compliant.

can't really tell but i'm hoping that was in jest...

 

[Eli]

 

[Tom4value]

can't really tell but i'm hoping that was in jest...

I was serious.

Client orders 2055. Says the scope of work is an exterior only inspection (we will assume you can get enough info to do credible results). Are you going to tell them, "tough! I decide the scope of work! I will do a full inspection on the URAR'?

Now, if they say the subject is a SFR of a 50 year old house in a market of no rentals and they say, "don't bother with the sales comparison approach. Only do the cost approach and the income approach". Then you can say, "no, to do this would not produce credible results and it would be a violation of USPAP".

 

[TRESinc]

I was serious.

Client orders 2055. Says the scope of work is an exterior only inspection (we will assume you can get enough info to do credible results). Are you going to tell them, "tough! I decide the scope of work! I will do a full inspection on the URAR'?

Now, if they say the subject is a SFR of a 50 year old house in a market of no rentals and they say, "don't bother with the sales comparison approach. Only do the cost approach and the income approach". Then you can say, "no, to do this would not produce credible results and it would be a violation of USPAP".

the appraiser determines what the SOW necessary to produce credible results are, no one else. that is appraisal 101. hell more like appraisal 1. it's on page 12 of the current USPAP. there are only 3 points to the SOW in USPAP, perhaps you should read it again paying special attention to point 2.

 

[Tom4value]

the appraiser determines what the SOW necessary to produce credible results are, no one else. that is appraisal 101. hell more like appraisal 1. it's on page 12 of the current USPAP. there are only 3 points to the SOW in USPAP, perhaps you should read it again paying special attention to point 2.

Perhaps you should take CE courses. A client has every right to determine what they want, including the scope of work. We are responsible for making sure that what they want conforms to USPAP.

 

[TRESinc]

Perhaps you should take CE courses. A client has every right to determine what they want, including the scope of work. We are responsible for making sure that what they want conforms to USPAP.

page 12. point 2.

a client can ask for whatever they want, but that doesn't mean i am going to do whatever they want. just like a client can send over an order at whatever fee they want to but i determine what my fees are.