Editor’s Note: This review first appeared in the Appraisal Today Newsletter, published by Ann O’Rourke. For more on the software and guide click here. To read this review in its entirety please click here.
Scope of Work Software and Book Review
by Doug Smith, IFAS
Most appraisers have furthered
their understanding of the newest changes to the Uniform Standards of
Professional Appraisal Practice (USPAP), with the emphasis on Scope of Work
(SOW), by taking additional continuing education that cover in detail the new
requirements.
At the same time, appraisers have become more liability-conscious due to some of
the onerous conditions in the new Fannie Mae forms- introduced in 2005 and 2006.
Given the press of recent business, many appraisers have not taken a
comprehensive approach to implementing these changes by systematically reporting
the various steps of the SOW process or addressing liability issues. Instead,
appraisers have taken a hodgepodge of suggestions and integrated them into their
reports.
Fortunately, there is a new
software program that automates the process of reporting the details of SOW,
while complying with Supplemental Standards, as well as addressing some
important liability issues. Priced at $99, this software represents a
significant breakthrough in the overall reporting process.
A companion document by the same author, entitled “Appraising in the New
Millennium” (Second Edition), is also available at a cost of $49. This 193-page
document comprehensively details in a refreshingly new way the appraisal process
with particular emphasis on USPAP’s SOW Rule and the overall due diligence
process that must be followed to fulfill the new requirements.
This document is more than a dry appraisal treatise covering a limited phase of
the appraisal process. It is, in fact, a thinking appraiser’s guide to the
current appraisal business environment and appraisal process universe.
Several new concepts and tools are introduced along with 30 new definitions that
are critical to understanding today’s appraisal process.
SOW Documenting Software
The software is called USL
Appraisal Report Documenting Software. The name is an acronym taken from the
topics the software addresses. The “U” represents USPAP; the “S” represents
Supplemental Standards and the “L” represents Liability Management. According
to author David Braun, MAI, SRA, “It is my belief that almost every appraiser
can immediately improve his/her reporting with use of the USL Documenter. This
program is for both residential and commercial use.”
Braun continues, “This program is designed to aid the appraiser in all aspects
of documenting an appraisal report. It will compile all of the documentation
including the Limiting Conditions, Assumptions, Scope of Work, Certification,
etc., or it can produce only a few items to shore up a standard Report form like
the new URAR. It can produce an entire Restricted Use Report or simply
supplement your forms software package or commercial template.”
Background
David Braun, MAI, SRA is the author of “Appraising in the Millennium” and the USL Software. Braun has been involved in real estate appraising since 1976. He received a Bachelor of Science degree from the University of Tennessee, is an approved Appraisal Institute Instructor and is certified by the Appraisal Foundation to teach USPAP. Braun is also President and founder of Automated Valuation Technologies, Inc., a producer of appraisal seminars and software.
Braun took an early interest in the challenge of documenting SOW steps by developing a computerized SOW checklist of possible appraisal tasks. In 2002, the program was expanded from an MS Excel spreadsheet to include most USPAP compliance issues. In addition, the program includes items already addressed on most standardized forms.
The program has evolved into a
system that addresses the specific requirements of an appraisal assignment with
applicable phrases that could be added, deleted or modified. Outgrowing the MS
Excel platform in 2005, the USL Documenter II software program was developed to
run on any Windows platform. Initially both the first version of Documenter and
the companion book were given away with a reported 13,000 copies distributed.
When Braun developed the USL Documenter version II for sale, the book was
updated to the Second Edition and offered for sale as well.
Using the USL Documenter
The Documenter II Software is
delivered on a disk and is easily installed in its own directory. Overall, it
serves as a comprehensive checklist that allows the user to communicate his/her
decisions about the SOW and other issues pertinent to an individual report. The
program comes complete with a set of well-written comments pertinent to a
variety of appraisal reports.
The USL Document Wizard starts out with a basic list of options that require a
checkmark. Users can define whether they want the results in bulleted form or
numbered list. The output is limited to one font but can be adjusted once the
report is transferred into the appraisal document. Up to two appraisers can be
included in the final summary of comments. Digital signatures can be included as
well.
The report can be categorized by providing a value opinion, a site value, market
rent or “other” category. If the value opinion is checked, the next inquiry
asks about the three approaches of value. In some cases, the program addresses
not only what is done but what is not done. Verbiage is provided to explain why,
for instance, an approach is not used. When highlighting the checkmark, the
program offers tips and clarification of the specific item.
During the procedure of defining
the decisions that have been made in the appraisal planning process, the program
prompts for answers to a set of questions. The first set asks about the report
classification as to whether the report will be a Summary, Self Contained or
Restricted Use report.
The next set of questions deals with the user and the supplemental standard
type. The verbiage can be confined to users who are in the secondary market or
use the new Fannie Mae forms. An FHA report is an option as well, as an
evaluation report geared to that type of lender. The next set defines whether
the end product is to be used in a Narrative report or a Standardized report.
The next screen contains basic questions including whether or not there are
hypothetical conditions or extraordinary assumptions. After addressing these
basic questions the main body of the report is brought up. The text may be
edited and is highlighted in three different ways. The Report Wizard signals in
red text the issues that need to be addressed by the user. Gray text sets out
issues that may need to be addressed and black text are automatically included
in the program.
Customizing
The flexibility of the program is its main feature. Each entry can be edited or written from scratch. To enter a new phrase, the user double clicks on the line in the Documenter where they want to add a comment. When the “Phrase Builder” opens, the user clicks on the “Add” button. Next, it asks for a key word and then it will allow you to type in the common phrase. Once the report is finished, it can be copied and pasted into the report.
Overall the program provides a comprehensive set of responses. There is little support for the verbiage required for some frequent uses such as appraisal reviews, relocation reports and some specific concerns limited to REO properties. Comments can easily be added for specific uses, however. One other advantage of the program is that it can generate a complete stand alone Restricted Use report.
Staying Current
The big question regarding
“Appraising in the New Millennium” and the USL software is how the author can
stay up to date. For instance, the next version of USPAP is about to tackle
Supplementary Standards. In an interview about the USL Documenter, Braun
commented, “I will probably have to update the Documenter every time a new USPAP
goes into effect. I don’t know how existing customers will get an upgrade- that
depends on how many units are sold at that time. The more units I have sold the
more I can do for customers.” Currently, there is no information available about
the upgrade process.
For more, including free user guide and tutorial, plus how to order your copy of
The Documenter II Software ($99) and/or “Appraising in the New Millennium”
($49), please visit
http://www.workingre.com/workingre/scope-work-book.htm.