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1 report - "Subject To" and "As Is"?

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Alyssa Stockwell, Aug 15, 2009.

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  1. Alyssa Stockwell

    Alyssa Stockwell New Member

    0
    Jul 26, 2006
    Professional Status:
    Appraiser Trainee
    State:
    Florida
    Appraisal completed "subject to" with list of repairs and an estimate by a general contractor. U/W has come back and needs a line added to the report stating what the "as is" value would be. So to me this sounds like they want two appraisals in one report for one fee (of course). Am I incorrect when I say you need to order a new appraisal completed "as is" and I cannot just add a line to the appraisal. The u/w says we do this all the time blah blah. Is this a violation of USPAP?

    Yes, my supervisor discussed it with the loan processor prior to completion. Only when it was complete and went to u/w was the "as is" value requested as a condition.
     
    Last edited: Aug 16, 2009
  2. CANative

    CANative Elite Member

    66
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Did you (or your supervisor if you're are a trainee) discuss completing an appraisal subject to repairs?

    If not, you should have, so I don't really blame them at this point for wanting an "as is" report at no extra fee because "as is" was probably what they were expecting.

    Yes... simply adding a line or two stating the "as is" value opinion in a summary report would probably involve several USPAP violations. That doesn't mean you can't include two opinions of value in the same report.
     
  3. leelansford

    leelansford Elite Member

    26
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois

    1st, what is requested (2 opinions of value) could be communicated in a single report.

    2nd, HOWEVER, merely adding a single-line statement as the second opinion of value (in your Summary Appraisal Report) is a "no-no".

    Think of it this way: You understand (and, the client understands) that you could not provide a single-line statement for the first opinion of value and have it be a compliant appraisal. Thus, how could the second opinion of value communicated in such a manner constitute a compliant appraisal? The short answer: It would not be a compliant appraisal.
     
  4. Paul Isolda

    Paul Isolda Senior Member

    0
    May 20, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Connecticut
    For a federally related transaction, you are REQUIRED to provide an "as is" value when your are providing a "when complete" value. You should have known this and quoted a fee that would cover all the work necessary.
     
  5. Couch Potato

    Couch Potato Elite Member

    0
    Mar 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    If it is a residential report, it is highly unlikely to be a federally related transaction. :new_all_coholic:

    Still, it sounds like someone failed to communicate properly with their client to develop an appropriate scope of work. :fiddle:
     
  6. Lobo Fan

    Lobo Fan Elite Member

    0
    Nov 28, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    If you used a repair addendum there will be a place for an as repaired value.
     
  7. Carnivore

    Carnivore Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    1234567890

    never mind! The inbound lines have to be defined before we can engage in this argument.

    I agree with this wholeheartedly.
     
    Last edited: Aug 16, 2009
  8. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    141
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    au contrare. If it is in poor condition and needs extensive repairs, then the loan in unlikely to be going into secondary market. A regulated bank is probably making the loan and if over $250,000...it is regulated as an FRT...and they are fond of both the 'as is' value and the 'subject to' value.

    In the case of a new construction the ' as is' would be the site value. In a repair situation, you likely would just use 3 similar comps.
     
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