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Hello c.k.campbell@worldnet.att.net,
The question you ask is similar to this hypothetical situation;
(From ADVISORY OPINION 21 (AO-21))Many appraisers and other professionals are uncertain about when they should meet USPAP requirements in providing valuation services. This uncertainty stems from two fundamental questions:
Should appraisers perform all assignments in compliance with USPAP, even when an assignment is not included in appraisal practice?
Are other professionals, whose work may require them to analyze value, obligated to comply with USPAP, even though they are not appraisers?
(Appraisers obligated to comply with USPAP recognize their responsibility to the ETHICS RULE, whether the services they provide are part of appraisal practice or part of other endeavors.)
Steve Andrews is a residential appraiser. One day, when attending a backyard barbecue, Steve is approached by a neighbor, who says, "Hey, Steve, I know you’re an appraiser. What do you think my house is worth?" What should Steve say?
Answer: Steve should recognize immediately that his neighbor expects him to respond as an appraiser. That means that as a part of appraisal practice, Steve’s answer should comply with USPAP. Steve can, of course, always decline to answer. He could say, "Gee, I don’t know. I haven’t worked in this neighborhood recently," or "Well, I haven’t been inside your house lately—I wouldn’t want to give you an uninformed answer."
Alternatively, Steve could provide a factual answer, such as, "I’ve been keeping track of the house sales in our subdivision, and they have been from $100,000 to $150,000 over the past couple of years." Giving such information is a part of appraisal practice for which there are no specific performance standards. Steve should be certain that he is acting ethically and competently in giving this kind of information, but he doesn’t need to prepare a workfile for it.
Steve should be careful, though, about applying any judgment in answering his neighbor’s question. If Steve says, "House sales in our subdivision in the last year have been from $100,000 to $150,000. I know that you’ve done lots of interior improvements to your house and, besides, it’s the more desirable two-story model, so its value should be near the high side of the range," he has just performed an appraisal. In this case, he should comply with Standards 1 and 2 and prepare a workfile. If Steve only provides factual data, he probably is acting within appraisal practice, but if he relates that data to a specific property, he has provided an appraisal.
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