Appraisers with Geographic Competency
Appraisal vendors play a vital role in the success or failure of our appraisal operations at MIS. To this end, we must endeavor to utilize appraisal vendors having integrity and competence. In addition, we seek appraisal vendors that behave with professionalism and maturity while upholding the ethical and performance obligations manifest in the Uniform Standards of Professional Appraisal Practice (USPAP).
Both staff and fee panel appraisers and reviewers engaged by MIS are required to meet the same general standards of education, training and experience. Prospective fee panel appraisers are provided a copy of the MIS Application for Approval. The following is requested as part of the application process:
- Evidence of a valid appraisal license or certification (This is also requested throughout the period of inclusion on the M.I.S. approved appraiser panel.)
- A personal resume and completed application is requested for examination.
- Applicants are asked to provide the names of at least two persons acquainted with the appraiser for at least two years.
- MIS requires staff and fee panel appraisers to maintain their necessary continuing education requirements for license or certification. Appraisers are encouraged to attend appraisal education programs and seminars to improve their skills.
- Individual applicants are requested to provide current samples of form appraisal reports prepared and signed by the applicant.
MIS appraisal policies require all appraisal reports to be signed by an appraiser who is either licensed or certified by the state in which the property is located.
Currently, MIS utilizes appraisers with a wide range of appraisal experience. Selection as an approved MIS appraiser involves continuous assessment of the quality and consistency of work, attitude and professionalism exhibited by the appraiser.
Along with evidence of the appraiser’s appraisal license, our application process requires the appraiser to identify the counties of coverage that they are competent to work in. As an added step to the “Competency Rule” our engagement letter instructs our appraiser to reject the assignment if it is beyond the appraiser’s level of technical or geographic competency.
USPAP’s Competency Rule states: “Prior to accepting an assignment or entering into an agreement to perform any assignment, an appraiser must properly identify the problem to be addressed and have the knowledge and experience to complete the assignment competently …”
USPAP further states: “In an assignment where geographic competency is necessary, an appraiser preparing an appraisal in an unfamiliar location must spend sufficient time to understand the nuances of the local market and the supply and demand factors relating to the specific property type and the location involved. Such understanding will not be imparted solely from a consideration of specific data such as demographics, costs, sales, and rentals. The necessary understanding of local market conditions provides the bridge between a sale and a comparable sale or a rental and a comparable rental. If an appraiser is not in a position to spend the necessary amount of time in a market area to obtain this understanding, affiliation with a qualified local appraiser may be the appropriate response to ensure development of credible assignment results.”
Appraiser Maintenance and Monitoring
An electronic file is typically maintained, on an on-going basis, for each staff and fee panel appraiser/company.
Items maintained may include:
- Work samples retained in the appraiser file
- Copies of applicable licenses/certification, appraiser application, etc
- Evidence of appraisal Errors & Omission insurance coverage, if applicable
On occasion, we encounter an appraisal vendor whose actions contradict those attributes cited in the preceding paragraphs. In these cases, we may elect to address such contradictions by utilizing one or more of the following means (presented in no particular order and not exclusive):
- Independent investigation and discovery
- Verbal discovery and counseling with the appraisal vendor
- Reduced work volume
- Informal watch status
- Temporary inactive status
- Indefinite inactive status
- Referral to the appropriate State enforcement agency and/or professional ethics board