Appraisal Foundation issues Draft White Paper – Alternative Valuation Products and the Uniform Standards of Professional Appraisal Practice
“At the request of its Industry Advisory Council, The Appraisal Foundation has drafted the attached white paper on Alternative Valuation Products and the Uniform Standards of Professional Appraisal Practice (USPAP).“
“The white paper is intended to provide information to assist appraisers, users of appraisal services, and others, with a greater understanding of Alternative Valuation Products and their use in the marketplace. The paper also attempts to view these products in light of an appraiser’s USPAP obligations.“
“All interested parties are encouraged to comment in writing before the deadline of December 31, 2013. Respondents should be assured that each comment will be thoroughly read and considered.“
Included are BPOs, AVMs, CMAs,
– Appraiser Price Opinions (APOs)
– Reconciliation Review Non-Standard Desktop Valuations/Field – – Reviews Full inspection proprietary appraisal form (non-GSE form)
My comment: lenders have been looking for an alternative to an appraisal report for a long, long time. For many fee appraisers, the issue is a low fee, even if it is uspap compliant. FYI, the Industry Advisory Council is composed of representatives from lenders, AMCs, etc. Of course, it is not the total fee, but the per hour billing, that is most important. If you get $400 for a report and spend 8 hours (including travel time, stips, etc.) you make $50 per hour. If you spend 4 hours for a $250 appraisal fee, you also make $62.50 per hour. Don’t make the mistake of focusing on the total fee.
Click here to read the 36-page document. The first 13 pages is the main section. The remainder is mostly excerpts from state laws.