by Tamora Papas, SRA,
CRP
There are frequent questions regarding "What does it mean to be Geographically Competent as an
Appraiser in the District of Columbia"?
Geographic Competency issues
arise when appraisers go into areas where they have not been, or have not
done work in, on a regular basis. When someone from, say,
Hampton Roads, VA goes into Georgetown to do an appraisal and have been in DC only one time, causing the appraiser to treat the property like one in Hampton
Roads.
Geographic Competency
is determined by the appraiser and the client. It is based on the appraiser's
knowledge of the "geographical" location and property being
appraised. It can also be based on the appraiser's ability to take the time necessary to gain the requisite knowledge to perform
a competent and credible valuation assignment.
Appraisers are reminded that they should only be doing appraisals in areas for which they
have knowledge, or where they take the required time to
obtain the required knowledge. It does not really matter where the appraiser resides or works, but rather what they know or have learned.
The Competency Rule of the Uniform Standards of Professional Appraisal Practice (USPAP) is very
clear on this issue.
Prior to accepting an assignment or
entering into an agreement to perform any assignment, an appraiser must properly
identify the problem to be addressed. They must have the knowledge and experience to
complete the assignment competently; or alternatively, must:
-
Disclose the lack of knowledge and/or experience to the
client before accepting the assignment.
-
Take all steps necessary to complete the
assignment competently.
-
Describe the lack of knowledge and/or experience and
the steps taken to complete the assignment competently in the
report.
Notice that it does not define
competency by distance or a mile radius as is the growing standard requirement
on some Appraisal Manangement Company (AMC) requests. Some clients define the distance by the office location
and some by where the appraiser lives.
Both are faulty in premise and do not
adequately qualify or disqualify the appraiser for an assignment. Conversely,
just because an appraiser lives or has an office in a specific market does not
automatically mean they are qualified to complete appraisals there.
Many appraisal firms have expertise
in numerous markets that may or may not be contiguous to their place of
business or homes. Some may have qualified appraisers who specifically cover
distant regions. Chances are that if
an appraiser pays to be a member of an MLS, then they probably do enough work
there to justify the ongoing expense.
Even in cases where an appraiser
does not have the experience and knowledge, USPAP allows and requires that they
become sufficiently knowledgeable to complete an assignment. Obviously, the
bigger debate would then be what the process is for obtaining that knowledge.
The Competency Rule does propose several methods to accomplish this, but it does
not spell out an absolute protocol.
If the trend of distance
requirements continues to increase, it is possible that many of those affected will
simply look for new ways to widen their coverage area. What is to stop
appraisers from creating additional branch locations and re-registering those
addresses with AMC databases? One-person appraiser shops and home office operations, which represent the largest segment of our industry, could really feel a pinch if this
happens. Until then, it is probably a good idea to have a statistical database
of assignments to support your qualification claims.
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With the input of state regulators, The Appraisal Foundation has developed four "in-depth" training courses. The courses cover a range of USPAP compliance issues identified as "common trouble spots." These courses are geared toward appraisers who need a deep dive into specialized topics and for those who want to get their careers back on track. The courses are:
Appraiser Self Protection:
Documentation and Record Keeping
Students will learn how to protect themselves by maintaining proper documentation. This course includes best practices on maintaining the safety and security of files.
Report Certifications:
What Am I Signing and Why?
Students will learn about appraiser independence and will gain a strong understanding of the differences between limiting conditions and certifications. Students will also learn about common certifications that are required.
Residential Report Writing vs. Form Filling
Students will learn the advantages of the narrative report and avoid common pitfalls in the use of some forms. Students will also learn to determine the strength or weakness of a report and why.
Scope of Work: Appraisals and Inspections
Students will learn more about scope of work identification and disclosures and obtain insights into the proper collection of data.
Visit http://www.appraisalfoundation.org/ to register for any of these seminars.
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Andrew Sullivan
The DC Board of Real Estate Appraisers welcomes its newest member, Andrew Sullivan. Mr. Sullivan is a licensed appraiser in the District of Columbia, Virginia and Maryland.
He joined the District of Columbia Real
Property Assessment Division in May of 2005, where he was responsible for appraising highly
complex residential properties in the city. Additionally, Mr. Sullivan also spoke at community outreach meetings at the direct request of then Mayor Adrian Fenty.
Mr. Sullivan currently works in the major property unit where he
is responsible for appraising highly complex commercial properties in the
District of Columbia. He is responsible for independent research and analysis
utilized to establish values for over 300 office and hotel properties. He has
valued over $20 billion in commercial and residential property in the city. Mr.
Sullivan has extensive involvement in the assessment appeals process in front
of the Real Property Tax Appeals Commission.
Andrew Sullivan is a native Washingtonian. He is the youngest of thirteen children, all of whom were born and raised here in the Nation’s Capital.
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The DC Board of Real Estate Appraisers depends on you to provide your e-mail address, because the Board frequently sends announcements that you may find useful. Please provide us the
e-mail address that you check often.
Follow these steps to ensure that Pulse Portal reflects your most favored e-mail
address for receiving information from the Commission.
-
Go to www.PulsePortal.com
- Choose a Program: District of Columbia
- Choose a Board: Appraiser
- Scroll to the “Licensing Services”
section and select “Change Your Address”
- Enter the following: LAST Name, License Number and Social
Security Number
- On “Change Your Address” screen, update
e-mail address AT BOTTOM of the screen.
Success! Watch for announcements in your e-mail or visit the Board's website: http://www.pearsonvue.com/dc/appraisers/ .
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The DC Board of Real Estate Appraisers will be sponsoring a Historic Preservation seminar. The event will take place at the Gallaudet University Kellogg Conference Center in Washington, DC. There is no out of pocket
cost to licensees. The courses will be held on Friday, May 19, 2017. Registration will be announced via e-mail.
The District of Columbia’s historic preservation
efforts, are administered by the DC Office Historic
Preservation, are guided by two documents -- the Historic Landmark
and Historic District Protection Act of 1978. These are carried out through
the Historic Preservation Regulations (DCMR Title 10A).
The purpose of the Historic Preservation educational
seminar is to inform licensees of the specific requirements of the
Historic Landmark and Historic District Protection Act of 1978 and DCMR Title 10A. Because historic
preservation is also an economic subject, the DC Real Estate Commission and
the DC Board of Real Estate Appraisers desire that licensees be properly informed,
ensuring protection of the public and preservation of historic communities.
The Historic Preservation educational seminar also presents
elements of the law to licensees in such a way that licensees will retain
information concerning the requirements of the law, therefore resulting in
fewer complaints by consumers.
Some main topics covered at the seminar may
include:
- Historic
Overview of DC Architecture and Neighborhood Development
- Historic
Designation / Financial Incentives
- Altering a Historic Property: A Firsthand Account of the Review
Process
- Why
Would a Community Want a Historic District Designation: Foxhall Village
Credits will apply to continuing education
requirements for the current 2017 - 2019 appraiser license cycle.
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NAIFA New Jersey Conference 2017
Golden Nugget
Atlantic City, NJ
April 19-20, 2017
DC Historic Preservation Seminars
Gallaudet University
Kellogg Center
Washington, DC
May 19, 2017
2017 Fall Conference
Westin Washington DC City Center
Washington, DC
October 13 - 16, 2017
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Meetings are scheduled on the third Wednesday of the month at 10:00 am.
January 18, 2017
February 15, 2017
March 15, 2017
April 19, 2017
May 17, 2017
June 21, 2017
July 19, 2017
August, 2017 - Board Recess
September 20, 2017
October 18, 2017
November 15, 2017
December 20, 2017
Dates are subject to change. Call 202-442-4320 for updates.
Board meeting minutes are available at www.open-dc.gov.
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