"Why won't appraisers do a comp search in NC?"

Because recently, Comp searches have received the attention and jurisdiction of the NC Appraisal Board. Legally a comp search is considered an oral appraisal, and per USPAP and NCAB standards, an appraiser who provides this service must develop a written workfile to support their findings, regardless if they are reported as a targeted value or range of value. . Below is an excerpt copied directly from the NC Appraisal Report newsletter.

"Recently there has been a noticeable increase in the number of requests for a comp search. These may take the forms of requests such as “We need comps for this property that will support a loan of $100,000. Please provide 6 sales.” Usually the client will state that there is no need for a property inspection or any other fieldwork. Often the fee, if there is one, is minimal. Some appraisers consider this type of a request a preliminary appraisal. If they feel they can get the value the client wants, they inform the client and hope to receive an assignment for a “full” appraisal.

Appraisers need to understand that whenever they give a value or range of values for a property, they are doing an appraisal. The comment to the definition of “Appraisal” in USPAP states “An appraisal must be numerically expressed as a specific amount, as a range of numbers, or as a relationship (e.g., not more than, not less than) to aprevious value opinion or numerical benchmark (e.g. assessed value, collateral value).” If appraisers do a comp search and tell the client that they have 6 comps that would support a loan of $100,000, they have performed an appraisal. There is no such thing as a preliminary appraisal. If an appraiser values a piece of property in any way, it is anappraisal, and both Standard 1 and Standard 2 apply. If the appraiser gives the value orally, the appraiser must comply with the requirements of Standard Rule 2-4. "

We, as appraisers, do understand the position you are in as the lender, we just ask that you respect us as professionals and recommend you take a look at our Market Analysis section for some viable and legal alternatives to a comp search.

uspap.pdf

"I paid for the appraisal, so it's mine to do as I please, correct?"

No. The rights to the appraisal are retained by the entity that engages the appraiser to complete the assignment; irregardless of who pays for the appraisal. Information about the appraisal, or actual hard or soft copies of it can only be transmitted to that entity; known as "the client."  This is based on federal legislation in the Equal Credit Opportunity Act. The homeowner must obtain a copy from the lender who ordered it.

"So, what if I decide to use a different lender, you can just switch the name, right?"

No. A different lender, by law requires a completely new appraisal assignment. It is AppraisersNC policy, that if this new assignment comes within 90 days of the effective date of the previous appraisal, the new report will be charged at 50% of the original fee. After 90 days, full fee is charged.

Further explanation of both of these questions is available by clicking on the USPAP link at the top of this section.