Introduction by Ken Verrett (Runt Rants) : Owner of Acorn Appraisal Associates,
A few weeks ago Comp Checks were the subject of a Runt Rant column. That column resulted in some feedback here.....most noteworthy a suggestion by Taylor D. converting the call to another alternative, a neighborhood market summary.
The purpose of the column was to shine light on a sensitive topic, how to meet the needs of a legitimate client's legitimate need to do the right thing for his prospective borrower. I contend that the Scope of Work Rule in USPAP gives us the responsibility AND the authority to develop such solutions. Others disagree.
Joyce Potts, SRA posted a link to the Comp Check column on Appraisers Forum, a large and well organized appraisers forum. She linked to the column for the same reason it was written; to generate discussion on a sensitive topic. (click here)
Mrs. Potts link generated a wide ranging and sometimes emotional thread which went on for several weeks, and exceeded 400 responses! I was made aware of that activity last week and visited AppraisersForum to review the comments in the thread. Whew! Took me over an hour to read the 40 pages of comments that were generated.
The conversation ranged from emotional to strict interpretation of USPAP to views of USPAP providing alternatives to meet legitimate client demands. A worthwhile hour to spend. I'd recommend it to everyone interested in not only the comp check issue, but ANY issue in which we are embroiled today.
Through it all shined Ms. Potts!
What a gal! Attacked on many sides for just bringing the issue up, she managed the discussion with a professionalism and leadership and humor that we need in our profession. Were I a Client in need of any appraisal services or consulting services in her market, she'd be my first and only choice! It turns out that she and I disagree on fundamental points. That's OK. I know her views are her own based on her extensive experience. I can engage in dialogue with such a person, knowing that we fundamentally agree; that we both are honest, ethical, and want the best for our profession, our Clients, and our communities. With that foundation, we can discuss, learn, and get better.
Ken Verrett
Click below for Joyce Potts', SRA comments on Comp Checks! . . .
Author: Joyce Potts, SRA, Southern Appraisal Group, Inc. has 28 years of real estate experience with 24 years of full-time residential appraisal experience in the Central Florida Area. A graduate of the University of Central Florida with a degree in Legal Studies, she specializes in ERC/Relocation and expert witness testimony.
Let the record reflect that I'm not advocating anything illegal. My genuine motive in getting this thread started was to insight some useful discussion on an issue that apparently is not going away anytime soon.
Like it or not, much of the appraisal business, has gone by the wayside with AVM's taking a foothold in the marketplace. No one would love to see new laws mandating that nothing less than a 'full' appraisal is acceptable than me, but that's not going to happen. Lesser appraisal products are here to stay, so what's wrong with exploring legal alternatives that afford the professional appraiser a chance to compete?
After reading each and every post in this thread and countless others, I am still of the opinion that providing preliminary information (in the form of a USPAP compliant desktop appraisal or USPAP compliant comp check) to a client does NOT equate to an automatic, contractual agreement or contingency to hit a pre-determined number.
To suggest that the typical appraiser doesn't have the professional integrity to back away from a pre-disclosed value range after circumstances may have changed is incomprehensible to me, both philosophically and practically speaking. Those types of appraisers are going to hit a number with or without a prior comp check.
But in order to protect the appraiser from him/herself, USPAP has attempted to remove the appraiser from these types of immoral and illegal circumstances altogether. And the dumbing down of our profession marches on. Yet we all know non-USPAP compliant desktops/comp checks are not only done every day, but are proliferated by the very lending industry that was behind USPAP to begin with.
And furthermore, if the product is USPAP compliant, it's really nobody's business what anyone charges, PERIOD!. Any inference or suggestion to set a fee or a free $ range for any appraisal product or service is probably the bigger legal infraction.
I also see no difference whatsoever in providing USPAP complaint desktop reviews and am still trying to reconcile those of you who don't see the sister USPAP compliant desktop appraisal as anything different. That was a little side bar that was conveniently shoved under the rug in this thread.
This demonization, generalization and labeling of those who speak out against normal protocol appraisal issues as "skippies"; or "prostitutes" has really gotten out of hand.
I've had more people PM and e-mail me with questions or comments in support of my posts who are literally afraid to post publicly out of fear of being ostracized by many of the arrogant, self-righteous, all-knowing establishment and moral high-grounders that mostly dominate Appraisers Forum.
I am not a perfect person, nor am I a perfect appraiser. I have made mistakes and I've missed the mark on more than one occasion. And any appraiser who denies they haven't made mistakes, IS LYING.
My point is, please give the up and coming, less experienced appraiser a break. If someone asks about 'abstraction' certainly steer them in the right direction, but enough of the condescending, obtuse comments concerning the absurdity of the cost approach. In the end, you do a disservice to our profession. Are there exceptions to this, of course, and I've been guilty of hammering many myself in certain cases, e.g., Genteel. Sorry for the deviation, but it's my thread.
You will find no stronger advocate than myself when it comes to taking on an appraiser or an appraisal firm who repeatedly provides appraisal products or services that are not USPAP compliant, as several participants in this Forum can attest to.
The purpose of this thread was to try and insight an open exchange for both sides of the debate. I thought the article by Ken Verrett was well written and well presented. I don't necessarily agree with everything in the article or each and every concept, but I do think his article and views were worthy of discussion. If nothing else, the shear number of people who participated in this thread is a testament that this is a valid topic that is not going away anytime soon.
I've posted my opinions as to the appraisal profession multiple times on the Appraisers Forum. I have 25 years in appraising and 32 in general real estate in some form or another. I see our profession (as we know it) becoming increasingly obsolete. I'm not saying I agree with it, but regardless of which side of the discussion you're on, no appraiser can legitimately argue that the AVM's and similar products have NOT taken over and significantly impacted the appraisal profession.
Technology is here to stay. This ongoing complaining and rehashing of USPAP, complimentary Regs and AO's has done nothing to solve the problem, nor is it going to.
I'm simply open to looking at legal, USPAP complaint alternatives. So if that makes me a prostitute in the eyes of many of you, then bring on the fishnet stockings!
Joyce J. Potts, SRA
Author: Joyce Potts, SRA, Southern Appraisal Group, Inc. has 28 years of real estate experience with 24 years of full-time residential appraisal experience in the Central Florida Area. A graduate of the University of Central Florida with a degree in Legal Studies, she specializes in ERC/Relocation and expert witness testimony.
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