1. Welcome to AppraisersForum.com, the premiere online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Non Lender Appraisals

Discussion in 'Urgent - Help Needed' started by Ben Voros, Aug 18, 2006.

Thread Status:
Not open for further replies.
  1. Ben Voros

    Ben Voros New Member

    0
    Aug 18, 2006
    Professional Status:
    Licensed Appraiser
    State:
    California
    Could someone tell me what is the best form to use for an appraisal that is not requeste by a lender? For instance a homeowner requesting it for property gains, insurance, or divorce. Is it still possible to use the 1004 form?
     
  2. leelansford

    leelansford Elite Member

    44
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    Ben, you do not want to utilize the "new" Fannie form 1004 for anything other than for mortgage loans intended for the secondary market.

    If you are going to communicate the appraisal via a form...and if the Subject is a SFR...the "old" 1004 can work just fine.
     
  3. David Wimpelberg

    David Wimpelberg Moderator Staff Member Moderator

    41
    Mar 30, 2005
    Professional Status:
    Certified General Appraiser
    State:
    New York
    No new 1004 IMHO. Not only are the certs a problem, the statement regarding value is a problem. It states that the date of inspection and value are the same, which is entirely inappropriate for reporting retrospective appraisals, where these dates are different.

    Old 1004 are better. I believe the AI forms are the best. They are the only form I use for nonlending residential work. Depending on the circumstances, I may simply create my own report template.
     
  4. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    244
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    In past similar discussions, the result usually is a high percentage of respondants regard such work as strictly narrative whereas an equally high percentage see the old 1004 as equally applicable, and a decided minority would use some other form.

    I personally favor the narrative for anything except mortgage work
     
  5. nauthead

    nauthead Senior Member

    15
    Nov 26, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    New Form/Old Cert

    If you are used to the new form, why not just use the old cert pages? I believe the comments about intended use are limited to the cert pages.
     
  6. Mike Kennedy

    Mike Kennedy Elite Member

    59
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Ben - which software are u on? if ACI .......Rich Heyn developed GPAR (general purpose appraisal report) ........excellent for non- lender uses!
     
  7. Rich Heyn

    Rich Heyn Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    The 1993 1004 is a two-page form with a two-page companion form (1004B). You can use the old 1004 without the 1004B and substitute your own limiting conditions and certification. The 2005 URAR is a six-page form that combines the fill-in-the-blanks section (first three pages) with the limiting conditions and certification (last three pages). This means that if you want to throw away the last three pages and develop your own LC's and Certs, you should remove all references to Fannie and Freddie (at the bottom of each page) and remove the "Uniform Residential Appraisal Report" from the top of the pages because it's no longer a Fannie 1004, Freddie 70 or URAR. You have made it into something else and it could be considered misleading, not to mention the liability issues if it finds its way into a place you don't intend it to be. If your software allows it or if you are good with PDF manipulation, it may not be difficult to remove all references to Fannie, Freddie and URAR but if not, better get out the correction fluid.

    Even after replacing the last three pages with LC's and Certs of your own, the first three pages still retain liability-laden language such as:
    “Are there any adverse site conditions or external factors?”
    “Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property?”
    “Based on a complete visual inspection...”
    Commenting on the condition of the Foundation, Exterior Walls or Roof.

    Further, there are several items on the form that Fannie requires but your scope of work for a non-lending assignment may not. You may not wish to perform a 12 month listing history of the subject or a 1 year sales history of the comps. Maybe you don’t need to determine the exact number of active comparable listings of sales of comparable homes in the neighborhood. Perhaps you don’t need to determine the effective date of the data or have references to Fannie Mae in the Cost and Income approaches.

    Finally, the new URAR ties the effective date to the date of inspection, rendering it useless for retrospective or prospective appraisals.


    The above is from "Liability Management for Residential Appraisers," copyright 2006 by Heyn, Molitor-Gennrich, Baroda, MI.
     
  8. Denis DeSaix

    Denis DeSaix Elite Member

    146
    May 16, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    That Dawn Molitor sure knows her stuff! (Wonder how much she has to carry that other guy? :rof: )
     
  9. Smokey Bear

    Smokey Bear Elite Member

    0
    Dec 8, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    :rof::rof::rof:
     
  10. Rich Heyn

    Rich Heyn Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    I need, and will gladly accept, all the help I can get.
     
Thread Status:
Not open for further replies.

Share This Page