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Appraisers rightly ask a lot of questions about USPAP and desktop appraisals. These desktop assignments have been around literally for decades. They were not common in non-GSE appraisal work, but were the norm for other types of appraisal and valuation assignments. After all, sometimes the appraiser must put boots in the living room. And other times, no boots are necessary. That decision, simply is part of the appraiser’s scope of work. And by the way, the appraiser chooses the scope of work, doesn’t she?
When it comes to USPAP and desktop appraisals, some appraisers are worried. Frankly, they are worried desktop appraisals will ruin the real estate appraisal industry. Let’s face facts: some assignments simply are not appropriate for desktop assignments. But it is clear the GSE understand this (at least they do now – who knows what stance they will take in the future?). Plus, the appraiser has the right to either decline the desktop assignment, or to elevate it to a full (“typical”) appraisal assignment. But the point is, all other things being equal, why not do a desktop appraisal when that is appropriate and it will not mislead the client?
USPAP and desktop appraisals must have a context, however. Some appraisers advocate it is “…the appraiser’s responsibility to protect the…public trust.” That is what USPAP says, true. But that is not the context of the quote. Rather, in its context, the appraiser has the pro-active responsibility to protect the overall public trust in real estate appraisal and real estate appraisers. It is not our mission to protect the public from itself. Nor is it our championship to protect borrowers from rapacious lenders. Simply our job is to provide the client with an uninterested, competent, independent, impartial, and objective opinion of the market value of the subject property. If our job was to look out for the interests of the mortgagor, then we could not be independent, impartial, and objective, could we?
So, as we look at USPAP and desktop appraisals, remember we are in charge of that decision. So we have the choice.
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