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Useful Appraisal Comments

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Adam Rodgers, Nov 13, 2006.

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  1. Adam Rodgers

    Adam Rodgers New Member

    0
    May 30, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Utah
    I have been using a few comments from an appraisal website I found a few months ago that have been quite useful. The website is http://www.georgiaappraiser.com/ Does anyone have any other good comments they use in their appraisals or another collective database like this one? Here are a few comments that I use from the site I found. I don't use all of these I find many of them useful.

    Cost Approach Comments
    Because of the age of the subject's improvements, the cost approach is not a reliable indicator of value and is not applicable in this report.

    The sales comparison approach is the most reliable approach to value and was given the most weight. The cost approach is necessary because the house is new (or almost new) and lends support to the sales comparison approach.

    Income Approach Comments
    Rental income is not a motivation to purchase in this neighborhood and the income approach is not applicable in this appraisal.

    Intended Use Comments
    The Intended User of this appraisal report is the Lender/Client. The Intended Use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. No additional Intended Users are identified by the appraiser.

    Typical Sales Contract Comments
    The contract appears to be between a willing buyer and a willing seller meeting all the characteristics of a market value transaction.

    Scope of Work Comments
    The appraiser is not qualified to make a judgment about the condition relating to the foundation, roof, exterior walls, etc. A visual observation of the exterior surfaces from ground level was made. The reported conditions reflect only the apparent surface condition. If the client has concerns regarding the condition of these components, an inspection by a qualified party is recommended.

    Sketch Comments
    The appraiser has provided a sketch in this appraisal report to show the approximate dimensions of the improvements. The sketch is included only to assist the reader in visualizing the property and understanding the appraiser's determination of its size.

    Flood Map Comments
    The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination.
     
  2. leelansford

    leelansford Elite Member

    45
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    Adam, take care in the use of "canned" comments.

    Some such comments are OK to use...the comment regarding flood hazard zones is a good example.

    However, I often see appraisals where the appraisers are using too obvious canned comments and it is apparent that the appraiser is clueless as to what he or she is stating.
     
  3. Otis Key

    Otis Key Elite Member

    0
    May 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    Ditto Lee's statement. I just reviewed several reports, which are on their way to the state board, that had canned statements in them that had absolutely nothing to do with the subject property. Statements such as "subject to completion" on "as is" appraisal; "this high end market" in an "average quality and affordable price range" market.

    The use of "canned" statements in some areas is fast and convenient, but can be hazardous to your career. One of the complaints to the state board against you could be "numbers errors of omission and/or commission in such a manner as to present an apparent misleading, not credible or misrepresentative appraisal."
     
  4. ttaM kooC

    ttaM kooC Junior Member

    0
    Apr 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    #1 & 2: I think I might have a problem asserting that either the cost or income approach is not applicable. They may be less reliable indicators than another approach or may not be necessary to develop a credible opinion of value, but I would hesitate to say they were not applicable in typical residential work.

    #3: I hope everyone doing Fannie work has been using this since its development.

    #4: I would not presume to be Karnac the Magnificent and have insight into the minds of the buyer and seller. Perhaps if I interviewed them I could comment on their motivations.

    #5: Always a good idea to expand the SOW comments to clarify what it and isn't included, though I am not sure of the appraiser's qualifications to make a judgement about the condition of the "etc." Might be better to be more specific.

    #6 & 7: The last two (Sketch and Flood Map comments) are taken straight from the Fannie forms' Statement of Assumptions and Limiting Conditions.

    I am all for sharing comments and have both given and taken some here at this forum. There are probably a lot of good ones at the Georgia forum too.
     
  5. Steve Owen

    Steve Owen Elite Member

    0
    Jan 16, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Missouri
    I agree with Matt.

    Additionally, I generally don't like canned comments and usually don't use them. Each situation must be viewed on its own merit and then an appropriate comment can be written. I sometimes start with a comment that is "canned" in the since that I have used it before, but usually rewrite or edit to fit the current situation more specifically.
     
  6. john snyder

    john snyder Senior Member

    0
    Jul 27, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    Here is a comment that I find not only wrong but really shows how much the appraiser does not know - it is written in various forms like this:

    "The house is of typical age and condition for the neighborhood and therefore there is no functional or economic obsolscence."

    Why would the appraiser even say this? Especially on houses that are older. There has to be some functional obs. because there are better products and materials in todays houses. And just what does the age and condition possibly have to do with economic obs.????

    Drives me crazy.

    I did like a couple of the comments that were posted for this thread.

    john
     
  7. TC

    TC Elite Member
    Gold Supporting Member

    22
    Jan 31, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Pennsylvania
    I recently copyrighted the phrase, These were the best comparables available.

    Should make a million.

    TC
     
  8. Claude From NY

    Claude From NY Senior Member

    0
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Feel free to use this one as seen in a recently reviewed report. :) There were no security bars on any window.
     

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    Last edited: Nov 13, 2006
  9. Colorado Guy

    Colorado Guy Member

    0
    Feb 9, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    That is of course unless there are some!
     
  10. DTB

    DTB Elite Member

    31
    Jun 11, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois

    Nor a spellchecker on his machine:(
     
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