Help!! Retrospective Cooperative

Discussion in 'Urgent - Help Needed' started by esturni, Mar 16, 2006.

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  1. esturni

    esturni Sophomore Member

    0
    Dec 31, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    I have my first retrospective report order, it's a coop.
    I performed an appraisal a few weeks ago for a divorce. Now I am asked to perform another appraisal of the same apartment as of 2002. I have sales from back then I can use, but I have some questions:
    Do I use the old or new form?
    What do I do about the coop's mortgage info, and occupancy rates? I doubt the mgmt agent has this info.
    How would I know the unit's maintenance from 4 years ago?
    And finally, any special paragraphs or statements to put in the addendum??

    Thanks for your help everyone!
     
  2. Richard Carlsen

    Richard Carlsen Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Michigan
    The form you use does not matter. This sounds like a non-lending assignment so you are not bound by any Supplemental Standards. You really don't have to worry about all of that managements stuff if it is typical for the market and similar to what it is today. Keep in mind that this is not for lending. There are a lot of areas (comps prior sale, census tracts, analysis or any sale in the past 31 or 3 years for subject or comps, etc.) that you can just mark n/a.

    For consistency I would use the same form you just used on the current appraisal. That way there is less confusion. What they are looking for is appreciation during the marriage.

    When I do retrospective assignments, I usually make some extraordinary assumptions unless I have personal knowledge of anything like unit being professional decorated in 2004 that the condition at the effective date of the retro appraisal is similar to todays condition. That works well enough for most people unless it's a real dirty divorce. Then everything will be an issue no matter what you say.

    I do put this sentence in at the beginning of the reconciliation: This is a retro appraisal using limited available sales data. Then just go on and write the report like it is the effective date of the report. If you have MLS, you may want to arm yourself with some sales data from that period. Since you will not know the number of listings on the market and if the market was in balance or over-under supplied, if you can, check the selling to expired/withdrawn ratios of that year with the two previous years and the two following years. It will give you an indication of market activity for that time.

    Hope that helps a little. Good luck.
     
    Last edited: Mar 17, 2006
  3. Denis DeSaix

    Denis DeSaix Elite Member

    44
    May 16, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    I agree with Richard with one significant exception:
    If your assignment is not intended for use in a mortgage finance transaction, you should not use Fannie form 2090, rev 03/05, as its pre-printed certification states the intended use IS for a mortgage finance transaction.

    You may want to consider doing this in a narrative format. Time consuming the first few times around, but you would be setting up your own “template” for future non-lender assignments.

    Good luck!
     
  4. Richard Carlsen

    Richard Carlsen Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Michigan
    I agree with Dennis. My first report would have been a Complete Narrative Summary report and the second would have been like unto it (as the old Book of Common Prayer would have said).

    If in fact you do use the same form now that you have done the first on a lending form, you can just make a statement in the report for the client to disregard the comments for financing, explaining that the form is used for continuity and that it is in the format that most people are used to seeing real estate appraisals. You may want to rewrite the Limiting Conditions and Certs to fit the assignment.
     
  5. esturni

    esturni Sophomore Member

    0
    Dec 31, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    that helps a lot.. thanks so much for the advice!
     
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