Education for Certified Residential Classification

Question: What are the education requirements to become certified residential?

Answer: You must be licensed and must take the following courses:

1. Residential Statistics, Modeling, and Finance (15 hours)
2. Advanced Residential Applications and Case Studies (15 hours)
3. Residential Appraisal Subject Matter Electives (20 hours)

I am offering one of these courses at least once each month. Please check my calendar to sign up.

Education for License Classification

Question: What are the education requirements for licensing classification.

Answer: The appraiser must be registered. To become licensed, the appraiser candidate will need 60 hours in addition to the 90-hour registered appraiser curriculum.

1. Residential Appraiser Site Valuation and Cost Approach (15 hours)
2. Residential Market Analysis and Highest and Best Use (15 hours)
3. Residential Sales Comparison and Income Approaches (30 hours)
   

It is my plan to offer these courses twice a year if demand is sufficient.

Most Recent Deed Not Recorded

Question: I have just completed an REO for a home that is vacant and been foreclosed on. When I go to GSCCCA.org the deed/data has not been updated for this property. Is there a website that gets and inputs their data faster than GSCCCA with regards to foreclosed properties?

Answer: I have always contended that you can do about anything in an appraisal provided you explain what you did. Here are two options.

1. According to the lender, this property was foreclosed on Tuesday, March 4, 2008. Apparently the deed under power was not recorded as of the effective date of the appraisal and verification was not possible. This appraisal makes the extraordinary assumption that the owner of record is XYZ bank who is the client.
2. According to the lender, this property was foreclosed on Tuesday, March 4, 2008. Apparently the deed under power was not recorded as of the effective date of the appraisal. A copy of the unrecorded deed under power was provided by John Smith, attorney for XYZ Bank. This appraisal makes the extraordinary assumption that the owner of record is XYZ Bank who is the client.

Either comment is acceptable. Put in the field "Owner of Record" on page one of the report, "See page xx of this report".

Sump Pump

Question: What is a sump pump?

Answer: A "sump" is a hole, generally in the basement, that collects water. A "pump" is placed inside the hole to remove the water when it reaches a certain level. Together they are called a "sump pump". The actual name should probably be a "sump and pump" since there are really two separate components.

The reason FHA and FNMA likes the appraiser to report a "sump pump" is that it demonstrates that the basement leaks or has leaked at one time.

http://en.wikipedia.org/wiki/Sump_pump

Appraising Part of a Property

Question: A client has asked me to appraise a house with a pool but not to include the value of the pool. Can I accept the assignment with this assignment condition.

Answer: You may appraise the property without the pool. Question 107 of the 2006 USPAP FAQs (page 61) states in part:

”The subject of a real property appraisal is not limited to all of the physical parts of an identified parcel or tract of real estate. The subject of a real property appraisal can be a full or fractional ownership interest in all or any part of an improved or unimproved parcel or tract of identified real estate. For example, the subject of a real property appraisal could be a half-interest in the land, part of the land, the improvements on or to the land, or some other configuration within a parcel or tract of identified real estate.”

Standards Rule 1-2(e) states, in part:

”An appraiser is not required to value the whole when the subject of the appraisal is a fractional interest, a physical segment, or a partial holding.”

State in the Scope of Work that the pool was not part of the appraisal. It is probably best to include a photo. Proceed as if there were no pool.

Appraisals Without a Client

Question: I have heard that I can gain experience credit by doing "appraisals without a client" under the supervision of a school or even doing a vacant house on my own. Is this information accurate?

Answer: Your information is accurate.

See PDF page 28 of The Real Property Appraisal Criteria, AQB, 2006

”Appraisals in conformance with USPAP may be made without a client. They can qualify for experience credit toward a credential, but there are special considerations a credentialing authority must consider. Without a client, the appraiser determines the type of appraisal and type of report. In instances where appraisals were never presented to anyone with a stake in a potential transaction, there is no oversight entity to verify data and ensure that it was correctly analyzed and interpreted. There is no potential for feedback to the appraiser on his or her performance.”

The same document (PDF page 34) says:

”There need not be a client in order for an appraisal to qualify for experience, but experience gained for work without a client cannot exceed 50% of the total experience requirement. Case studies or practicum courses that are approved by the AQB Course Approval Program can satisfy the non-client experience requirement.”

Conclusions:

• An appraiser can do 50% of total experience without a client. Supervision by a school appears to be optional.

• These are AQB rules. GREAB rules may be different.

Contract Denied

Question: If the client refuses to give me a copy of the contract, can I still complete the appraisal?

Answer: If the appraiser is not provided a contract, the appraisal can still be completed provided the reasons are disclosed in the report. A comment similar to the following is appropriate.

The appraiser was not provided a copy of the contract by the lender or other party with access to the contract. This appraisal is not in compliance with FNMA requirements since the appraiser cannot attest to Certification #5. Failure to attest to any required Certification is clearly prohibited by FNMA in paragraph two of page xx of the appraisal.

References to the contract in this appraisal are based on the extraordinary assumption that the contract data as provided by the lender are accurate.

Remember when you are not provided a contract, you do not know:

• If the subject property is the property under contract
• The buyer's name
• The borrower's name
• The seller's name
• The contract amount
• The contract date
• Financing concessions
• The existence of a contract
• Is the seller the owner of public record
• Other things I may have not thought of