ADVISORY OPINION 19 (AO-19)

This communication by the Appraisal Standards Board (ASB) does 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.  

SUBJECT: Unacceptable Assignment Conditions in Real Property Appraisal Assignments

APPLICATION: Real Property

ISSUE:

All real property appraisal assignments involve conditions that affect the appraiser’s scope of work and the type of report. What types of assignment conditions are unacceptable?

BACKGROUND:

Many residential property appraisers report requests for service where the caller includes statements or information in the request similar to the following:

  1. We need comps for (property description) that will support a loan of $___________; can you provide them?

  2. Sales Price: ___________.

  3. Approximate (or Minimum) value needed: __________.

  4. Amount needed: ______________.

  5. Owner’s estimate of value: ___________.

  6. If this property will not appraise for at least ___________, stop and call us immediately.

  7. Please call and notify if it is NOT possible to support a value at or above ___________, BEFORE YOU PROCEED!!!!

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.

Appraisers ask, “Can I respond to such requests without violating USPAP and, if so, how?”

ADVICE FROM THE ASB ON THE ISSUE:

Relevant USPAP & Advisory References

Unacceptable Conditions

Accepting Assignment Conditions

Illustrations

Research Illustration

Staff or Multi-Appraiser Firm Context

 

  

TABLE OF CONTENTS

  

 

 

USPAP 2008–2009 Edition
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