MARCH 24 – I wanted to share with everyone an excellent post about the above topic. The Appraiser Coach has given me permission to re-post his article on my blog. I am thankful for that.
Their website is https://theappraisercoach.com
Instead of cutting and pasting the entire article, the link is https://theappraisercoach.com/do-third-party-inspectors-violate-uspap/
I hope you enjoy the article and their website.
My quick opinion on the matter excluding the USPAP issue (no doubt USPAP allows 3rd party inspectors, in my opinion).
Since 1993, I have NOT inspected any property I have performed an Appraisal Review (where I opine to value by either agreeing with the appraiser or coming up with my own value) or Evaluation on.
For Appraisals, the appraiser has already done that inspection and provided all the description I need to see.
For Evaluations, the past 10 years we have used a national firm to provide inspections. They do a far better job than any appraiser I know of. Clients love the inspection report we include in Evaluations.
The point is this has been going on for 25+ years. More and more appraisers realize it is not good use of their time to be doing the inspection. They serve their clients better by concentrating on the valuation analysis.
Lastly, the common concern I see regarding hybrid appraisals (again, maybe new to residential appraisers, but 25+ years in existence for commercial appraisers) is the quality of the inspection. As I note above, the inspection report we have obtained is done by people more qualified to do such than most appraisers. I agree, the level of competence of the 3rd Party Inspector must be addressed in order to avoid problems. It can be addressed. The GSEs just need to do it in advance. Not after problems occur.
Stay safe. Enjoy time with your family.