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Learning REO

Discussion in 'Appraisal Education' started by Renee Borne, Jun 29, 2005.

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  1. Renee Borne

    Renee Borne Junior Member

    0
    Jan 5, 2005
    Professional Status:
    Licensed Appraiser
    State:
    Arizona
    I have been looking for a class but have been unsuccessful. Should I seek out someone to learn from or do you just need to learn the forms?

    Any advice is appreciated.
    Thanks
     
  2. Tim Hicks (Texas)

    Tim Hicks (Texas) Elite Member
    Gold Supporting Member

    72
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas
    You should have a mentor, trainer or licensed appraiser that supervises you teach you how to do these type appraisals.
     
  3. Restrain

    Restrain Elite Member

    83
    Jan 22, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    The differences in a REO and other appraisals is the goal of the client. Most REO clients want a quick marketing time with "as is" and "as repaired" values. That involves giving reasonable costs to repair all the problems with a home, recognizing significant issues such as mold, etc, and sometimes having the guts to tell the client the home should be torn down. It's something you have to learn by doing.
     
  4. Carnivore

    Carnivore Elite Member
    Supporting Member

    43
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Roger,

    the short version:


    I recently gave the lender bad news just as suggested. The subject was a condo with ZERO value or Less than ZERO Value! The toxic mold infestation was so severe that mitigation could require a 100% gutting and rebuilding with the cost exceeding current market value by 10-20+ Percent.

    The news they were not happy to hear was that the AS-IS value would be Zero plus cost to mitigate the hazard, then and only then would someone pay any money to restore the unit to its intended use.

    After that report I began to receive a lot more volume from them.
     
  5. Artemis Fowl

    Artemis Fowl Senior Member

    0
    Mar 16, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Michigan
    How did you recognize it as toxic?
    Just curious.

    I am also interested in REO work. I have some experience in investment properties and rehab loan appraisals. Seems like it would be a logical segment to branch into.
     
  6. Carnivore

    Carnivore Elite Member
    Supporting Member

    43
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    John,

    The bank informed me of the mold toxicity. It influenced part of the fee(which was over $1,000), considering that I had to wear protective gear and a special respirator to inspect the property.

    Try and imagine an interior where all surfaces were completely covered by mold!
     
  7. Robert Dunkle

    Robert Dunkle Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oklahoma
    Andrew,

    I have appraised just such a house and NOBODY told me it was going to be that way. It was a Fannie Mae repo that they had a contract on for sale. There was heavy mold under the kitchen counter where the DW had been and a film of mold on everything in the house!. My client decided that they didn't want to lend on it after all. The buyer still wanted to buy it, so I don't know what happened to it. Respiratory system took a while to get straightened back up, though!
     
  8. Non Sequitur

    Non Sequitur Elite Member
    Supporting Member

    404
    Feb 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Louisiana
    Ah, "toxic" mold. In the last REO I inspected with obvious mold growth I documented the growth and reported it to the client because of the potential legal hazard and for the required disclosure forms. If a couple of lawyers in Texas hadn't sued the crap out of an insurance company "toxic" mold would be a non issue. The health hazard, I'll let the experts debate that.

    Cite

    Cite
     
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