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USPAP and the investigator’s questions is a topic we’ve covered before. But investigators still keep asking questions. So it makes sense to be aware of them, as well as how to answer them. That raises the question, “How do I answer the investigator’s questions?”. There is a two-part answer: part one is “from the data in your workfile”. Part two is “and those data in your workfile must have market support”. Remember, if you can’t find it in the market, why is it in your appraisal? If you can’t find it in your workfile (which is your appraisal), why is it in your report? Note there are classes to help you with this.
To use the term “USPAP and The Investigator’s Questions” implies USPAP is the source of the investigator’s questions. That’s because USPAP is that source. So are the state’s appraisal statutes. But most of the questions are from USPAP. Why? Simply because USPAP is the standard. Does your appraisal meet Standard Rule 1? Does you appraisal report meet Standard Rule 2? If so, you are good to go. If not, there are ramifications to consider.
Here is but one example of USPAP and the investigator’s questions. “From only the data in your workfile, please demonstrate the derivation of your GLA adjustment of X-dollars per square foot.” As far as the investigator’s questions go, this one is simple and straightforward. However, the issue is that, all too often, this derivation is not in the workfile. That adjustment is, instead, the result of rules-of-thumb and the appraiser’s “…twenty years of experience…”. Since the dollar amount of the GLA adjustment is one the market indicates, it is a fact, not an opinion. USPAP’s SR2-3 makes it clear the appraiser certifies this dollar amount is both “…true and correct…”. This means verification. And how can an appraiser certify something is true and correct if there is no verification in the workfile of that fact?