Home Appraisal FAQs - Appraisals Can you perform a Comp Check or Pre-Comp ?
Can you perform a Comp Check or Pre-Comp ?

Comp Check or Pre-CompThis can be a difficult question, which has no gray areas. There is a No answer and a Yes answer, dependent on your definition of “Comp Check" or Pre-Comp.”  Basically there are two different scenarios, of which one will result in a No answer and the other with a Yes answer.

The NO answer – is a request that requires an opinion of value. An opinion of value would include: a range of value (from $125,000 to $150,000), a relationship value (similar to the comp that sold for $175,000) or a benchmark value (at least $250,000). In this case Uniform Standards of Professional Appraisal Practice (USPAP) standards would apply, and therefore this service would be considered an appraisal. All the research, disclosure and work file would have to be maintained by the appraiser and a minimum USPAP compliant report must be filed with the client.The fact that the appraiser did not physically inspect the property is not relevant.This service CAN be provided by Nexus Analytix as a limited scope appraisal. (Please contact us about the fee, scope and report type)
The YES answer – the client is in need of recent raw sales data for a specific neighborhood. USPAP terms this service as a “research illustration.” The client simply wants the appraiser to provide a list of sales in a geographic area and does not require the appraiser to address the issue of comparability to a particular property. This type of service is not considered an appraisal since the appraiser does not provide an analysis, opinion or conclusion. Because it is not an appraisal, there are no specific USPAP performance standards that would apply. Nexus Analytix can provide this service for an established client. (Contact us about the availability, rules and regulations)

Additional guidance on this issue may be found in the Appraiser Standards Board’s Advisory Opinion 19 (Unacceptable Assignment Conditions in Real Property Appraisal Assignments).

Addition guidance from the the Appraisal Foundation: USPAP FAQ - July 2008

Still have a questions?  Nexus Analytix™ can provide answers for your real estate appraisal questions. Please contact our offices at, Phone: (856) 985-0008 or by e-mail.

 

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