extraordinary assumptions
125) 2055's and Extraordinary Assumptions
08/30/07
Dear Henry,
Some appraisers say Extraordinary Assumptions are the logical deduction from the instructions on the 2055 Exterior Only Inspection Appraisal form itself that says third party data must be "adequate" to complete the form. However, if all I have is a five-year old MLS sheet, aren't I still making an extraordinary assumption that the house is the same now as 5 years ago? Aren't I still making an extraordinary assumption that the house is owner-occupied?
Are Extraordinary Assumptions like these allowed or not? Your thoughts please.
Melanie Sellers mbsellers@earthlink.net
Dear Melanie,
An extraordinary assumption is used when you have no reasonable reason to believe that it is not true. I think you are looking for trouble when you use five year old data.
Why can't you determine if the house is owner occupied? Did you try to telephone the owner? Did you use a reverse telephone directory to see who is listed as living there? Maybe a voting list would supply the information you need.
The real question is whether you are doing everything reasonable to do a competent job. If you can answer "yes", there is nothing in USPAP that says you can't use five year old data. If I were doing the assignment, I would include information about what steps I took to get better data and why I was unable to do so.
H2
Some appraisers say Extraordinary Assumptions are the logical deduction from the instructions on the 2055 Exterior Only Inspection Appraisal form itself that says third party data must be "adequate" to complete the form. However, if all I have is a five-year old MLS sheet, aren't I still making an extraordinary assumption that the house is the same now as 5 years ago? Aren't I still making an extraordinary assumption that the house is owner-occupied?
Are Extraordinary Assumptions like these allowed or not? Your thoughts please.
Melanie Sellers mbsellers@earthlink.net
Dear Melanie,
An extraordinary assumption is used when you have no reasonable reason to believe that it is not true. I think you are looking for trouble when you use five year old data.
Why can't you determine if the house is owner occupied? Did you try to telephone the owner? Did you use a reverse telephone directory to see who is listed as living there? Maybe a voting list would supply the information you need.
The real question is whether you are doing everything reasonable to do a competent job. If you can answer "yes", there is nothing in USPAP that says you can't use five year old data. If I were doing the assignment, I would include information about what steps I took to get better data and why I was unable to do so.
H2