What's in your Workfile? Protect yourself from State Regulatory Agencies that consistently discipline appraisers for lack of actual support for cost numbers. Below are several actual disciplinary actions that were taken against appraisers
“Violations of USPAP Standards 1 and 2, Scope of Work, and Record Keeping Rule of the Ethics Rule: Failed to report correct zoning of the subject, failed to analyze comparable sales data necessary for credible assignment; cited sources for site valuation and replacement cost that were not accurate”.
“Workfile failed to contain adequate data or analysis to support the Sales Comparison and Cost Approach methods”.
“Unsupported Cost Approach. The site value indication cited in the Cost Approach was not supported. Respondent opined an inflated subject site value (S.R. 1-4(b)(i) and 2-2(b)(viii))”.
“...developed and communicated, used incorrect methods and analysis when performing the Cost Approach, and failed to provide adequate support and documentation for his findings in the Cost Approach”.
“Respondent failed to develop and report a credible Cost Approach to value when he: Cited three different valuation methods in the development of site value, but failed to summarize any support for these three methods, and failed to report adequate information for the lender/client to replicate the cost figures and calculations (S.R. 1-4(b)(i), S.R. 1-4(b)(ii) and S.R.(b)(viii))”.
“Respondent failed to keep public records, MLS, and Marshall and Swift handbook pages and documentation sufficient to support the Cost Approach regarding a 2007 appraisal of a subject property in Lake Wales Florida”.