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#10. I need a 'comp check' or 'current sales data check' Me - See Advisory Opinion #19- (or AO-19) Ask the Realtor for previous sales.
#9. 'The other appraiser said that its worth $xxxx, can you check on that for me?' Me -And you telling me this why? Use the other appraiser.See AO-19
#8. 'I have comps that you can use.' Me - 'and I will tell you how to structure your loan'
#7. 'This house is better than that sale'(Having never seen the house or the MLS sheet) Me -if you say so, send the order.. its COD; cash or check, report goes out when the check clears.
#6.'So what if there is a property on the market for 250 days similar to the subject at xyz value'Me- ok, that makes sense. that one hasn't sold, but this is worth more. See AO-1
#5. 'I need to change to lender on that report, by 5pm' Me-That's $250 for a new file, you'll save $75 because I did the sketch already. I need to go back out to the property, I have an opening tomorrow, I'll have to inspect the inside.See AO-3
#4. (Home owner) 'I built a jacuzzi in the middle of my living room! No one else has one!' Me- And? This is a good thing? Hope you enjoyed it. see this post
#3. 'I don't have a better contract, You can't read the contract?' Me I need a legible copy of the contract, this has been faxed a dozen times. (See AO-1 & Standard 1-5)
#2. 'I have a lot of work for you if you 'take care of me' Me Who's gonna take care of me when they take me license away for collusion or fraud? <:^Ð
and the number 1 thing a real estate appraiser does NOT want to hear..
#1. 'Do you invoice? We will pay you at closing'Me yeah right. you pay me and get paid back at closing.
Advisory opinion #1- The Uniform Standards of Professional Appraisal Practice (USPAP) and supplemental standards issued by others contain sales history requirements that obligate appraisers of real property to analyze and report pending and recent agreements, options, listings, and sales involving the property being appraised.
Advisory Opinion #3- Regardless of the nomenclature used, when a client seeks a more current value or analysis of a property that was the subject of a prior assignment, this is not an extension of that prior assignment that was already completed - it is simply a new assignment. also-The term "Recertification of Value" is often mistakenly used by some clients in lieu of the term "Update." A Recertification of Value is performed to confirm whether or not the conditions of a prior appraisal have been met. A Recertification of Value does not change the effective date of the value opinion. If a client uses this term in an assignment request that includes an updated value opinion, then it constitutes a new appraisal assignment that must be completed as discussed in this Advisory Opinion.
Advisory Opinion #19- Unacceptable Assignment Conditions in Real Property Appraisal Assignments (aka You're asking me to break the law) USPAP-AO#19- Appraisers report that the caller usually makes it clear that they do not want the appraiser to do any fieldwork. Some callers refer to the service requested as a "comp check" while others refer to it as a "preliminary appraisal" or use some terms other than appraisal (such as preliminary evaluation, study, analysis, etc.). Some callers indicate that if the numbers will not work, the appraiser can send a bill for research services or a "preliminary" inspection. Other callers promise future assignments if the appraiser can make the present deal work.
Standard Rule 1-5- When the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business: (a) analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal; and (b) analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal.
There are 10 Standards and 10 Statemets which make up the USPAP (Uniform Standards of Professional Appraisal Practice). There are also and additional 29 Advisory Opinions that are recommendations and supplemental to USPAP. Although they are considered addenda to USPAP, nonetheless they are used for illustrative purposes.. "Advisory Opinions issued by the Appraisal Standards Board (ASB) do not establish new standards or interpret existing standards. Advisory Opinions are issued to illustrate the applicability of appraisal standards in specific situations and to offer advice from the ASB for the resolution of appraisal issues and problems."
** The above is for illustration purposes of daily activities. Not all brokers work like this, but a lot of this is common practice and appraisers need to be aware of USPAP compliance in this and all matters in developing a real estate appraisal. PS. Get the Realtors to pull the comps for you. They have access to the MLS. If I do it, you're getting a bill or you're losing an appraiser. **
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.