Real Estate Appraisal Forum

appraisersforum.com logo
The Premiere Online Community for Real Estate Appraisers!
 Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
 
 
Go Back   Appraisers Forum > Real Estate Appraisal Forums > Fannie Mae, Freddie Mac, USPAP
Register Help Our Rules Calendar Archives Mark Forums Read


Closed Thread
 
Thread Tools
  #1  
Old 03-13-2009, 04:20 PM
cwhalstead cwhalstead is offline
 
Join Date: Mar 2007
State: California
Professional Status: Licensed Appraiser
Posts: 29
Default Need a Little Help In CA


Hello,

I am putting together a limited appraisal report. I have never done one so I do not know what forms to include in my report. Can anyone help me by telling me which ones to include? Are there optional pages you can include in a limited appraisal report, for instance: a sketch, comments page (if needed)?

Thank you

Struggling to Survive
Sponsored Links

  #2  
Old 03-13-2009, 05:21 PM
Randolph Kinney Randolph Kinney is offline
 
Join Date: Apr 2005
Location: SoCal
State: California
Professional Status: Certified Residential Appraiser
Posts: 18,402
Default

What are your client's requirements? Is your client a lender and is this for a mortgage finance transaction? Is this a full interior / exterior inspection?

You will get more information if you describe what your assignment conditions are.
  #3  
Old 03-13-2009, 05:41 PM
cwhalstead cwhalstead is offline
 
Join Date: Mar 2007
State: California
Professional Status: Licensed Appraiser
Posts: 29
Default More Information.

The purpose of this Limited Appraisal would be for an investor who wants an estimate of what a residential property would sell for after it is rehabbed (paint, floor and window coverings, remodeled kitchen and bathrooms). So it would be a case of estimating present value of home then adding the value any series/combination of improvements would make to it.

Full interior/exterior inspection. No lender requirements. This is not for financing of anykind. End user is an investor. Report will not be used by anyone else.

Thanks

Last edited by cwhalstead : 03-13-2009 at 05:43 PM. Reason: added more info.
  #4  
Old 03-13-2009, 05:47 PM
Randolph Kinney Randolph Kinney is offline
 
Join Date: Apr 2005
Location: SoCal
State: California
Professional Status: Certified Residential Appraiser
Posts: 18,402
Default

The term limited is no longer used in USPAP, which meant that an appraisal approach that was applicable was not done.

Do you mean a restricted use report?

It sounds like to me that your investor is interested in the hypothetical value subject to the repairs and alterations or improvement per plans and specifications. I would use the GPAR 1004 form with sketch, interior photos, exterior photos, property profile, etc.

Is your subject property offered for sale or does the investor own it?
  #5  
Old 03-13-2009, 10:23 PM
cwhalstead cwhalstead is offline
 
Join Date: Mar 2007
State: California
Professional Status: Licensed Appraiser
Posts: 29
Default More Information.

It is quite possible I don't know what I am talking considering I haven't done one of these. So it is quite possible it is a restricted report. The reason I was calling it limited was because in comparison to a full URAR 1004 Conventional Report this would be considered limited.

I do believe you have it right when you say, "It sounds like to me that your investor is interested in the hypothetical value subject to the repairs and alterations or improvement per plans and specifications." I thing you hit the nail on the head...! That is exactly it.

This is an existing property? It will be an interior and exterior inspection. The investor owns the property... just bought at auction but is going to fix up and sell it. It is currently NOT offered for sale. Thanks for your continue questions and help... I do appreciate it.

Thank you Randolf for staying with me on this... I do need help.

Last edited by cwhalstead : 03-13-2009 at 10:24 PM. Reason: wanted to personally thank someone
  #6  
Old 03-13-2009, 11:36 PM
Randolph Kinney Randolph Kinney is offline
 
Join Date: Apr 2005
Location: SoCal
State: California
Professional Status: Certified Residential Appraiser
Posts: 18,402
Default

Well then, you don't need the cost approach or income approach, unless your client makes that as part of the SOW (scope of work).

You do need the plans and specifications and that should be included as part of your appraisal so when you check box subject to (not the as-is box), everyone knows what is should be on completion.

All you do is find comparable properties that are the same as the subject would be as if it were already rehab to determine market value.

Be sure to state the intended use and purpose, with the intended user. A Fannie form will not do. You need the General Purpose Appraisal Report (GPAR) form 1004. ACI or WinTotal have that.

What you have will be a summary appraisal report, not restricted use report.
  #7  
Old 03-13-2009, 11:42 PM
Terrel L. Shields's Avatar
Terrel L. Shields Terrel L. Shields is online now
 
Join Date: May 2002
Location: Springtown, AmeRica
State: Arkansas
Professional Status: Certified General Appraiser
Posts: 37,654
Default

Quote:
putting together a limited appraisal report
Doesn't exist anymore.

A restricted report is defined by Std. 2 and I suggest you read it. I have a "Restricted" report format in my software, but I never use it. I would use a Summary report unless they object. And you need to define the scope of work which will set the tone of what the report needs to include. If you insist upon the "restricted' format remember your workfile must contain sufficient material to prepare at least a summary report. Same work, shorter report...try some sort of one/two page "summary" report is my suggestion.
__________________
I yearn to say "goodbye" - Madonna
  #8  
Old 03-14-2009, 09:35 AM
Couch Potato's Avatar
Couch Potato Couch Potato is offline
 
Join Date: Mar 2004
Location: Chapel Hill
State: North Carolina
Professional Status: Certified Residential Appraiser
Posts: 14,075
Default

Quote:
Originally Posted by cwhalstead View Post
It is quite possible I don't know what I am talking considering I haven't done one of these. So it is quite possible it is a restricted report. The reason I was calling it limited was because in comparison to a full URAR 1004 Conventional Report this would be considered limited.

I do believe you have it right when you say, "It sounds like to me that your investor is interested in the hypothetical value subject to the repairs and alterations or improvement per plans and specifications." I thing you hit the nail on the head...! That is exactly it.

This is an existing property? It will be an interior and exterior inspection. The investor owns the property... just bought at auction but is going to fix up and sell it. It is currently NOT offered for sale. Thanks for your continue questions and help... I do appreciate it.

Thank you Randolf for staying with me on this... I do need help.
I do hope you discussed your lack of competence and you plan to become competent with your client.

Your report will like be much like a new construction appraisal. You will want to appraise it as it will be, not as it is. You will want to be very detailed in your description of the improvements, both as they currently exist and as they will be. A sketch, or two sketches in the case of additions or alterations to the property, is a good idea. I do not recommend a Restricted Use report for this type of assignment. You need all the stuff in your work file anyway; go ahed and put it in the report. Your client will likely show the report to potential buyers even if it is a Restricted Use report. You never know what a judge would say if a buyer was misled by the report and sued you.

Such a report needs to be more detailed than a typical lending report.
__________________
"Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world."
  #9  
Old 03-14-2009, 08:24 PM
leelansford leelansford is offline
 
Join Date: Mar 2002
State: Illinois
Professional Status: Certified Residential Appraiser
Posts: 13,215
Default

Quote:
Originally Posted by cwhalstead View Post
It is quite possible I don't know what I am talking considering I haven't done one of these. So it is quite possible it is a restricted report. The reason I was calling it limited was because in comparison to a full URAR 1004 Conventional Report this would be considered limited.

I do believe you have it right when you say, "It sounds like to me that your investor is interested in the hypothetical value subject to the repairs and alterations or improvement per plans and specifications." I thing you hit the nail on the head...! That is exactly it.

This is an existing property? It will be an interior and exterior inspection. The investor owns the property... just bought at auction but is going to fix up and sell it. It is currently NOT offered for sale. Thanks for your continue questions and help... I do appreciate it.

Thank you Randolf for staying with me on this... I do need help.

As to the MINIMUM reporting requirements for a Restricted Use Appraisal Report, open your copy of the USPAP to Standards Rule 2-2 (c), pages U-26 through U-28.

Keep this thought in mind if you opt for Restricted Use vs. Summary: In a Restricted Use Report, your workfile must be made available for the client if the client requests it.
__________________
Lee Lansford, IFA
"My opinions & my opinions only!"
  #10  
Old 03-14-2009, 09:04 PM
Terrel L. Shields's Avatar
Terrel L. Shields Terrel L. Shields is online now
 
Join Date: May 2002
Location: Springtown, AmeRica
State: Arkansas
Professional Status: Certified General Appraiser
Posts: 37,654
Default

Quote:
Such a report needs to be more detailed than a typical lending report
Not so. You may need to do a complete appraisal...but the report depends upon the needs of the client. The appraisal, not the report, needs typically to be more focused upon the purpose of the assignment and that could be MORE or LESS detailed... If someone merely wants to know the max to bid on a property, the SOW could be fairly short. If they need an accurate value for taxable purposes, the appraisal needs to be more detailed regardless how bare bones the report is.
report ≠ appraisal
__________________
I yearn to say "goodbye" - Madonna
Sponsored Links

Closed Thread


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump




Copyright © 2000-, AppraisersForum.com, All Rights Reserved
     Terms of Use  Privacy Policy
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com

Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
Partner Sites:
AppraiserUSA.com - National Appraiser Directory AllDomainsUSA.com - Domain Name Registration
DeadbeatListings.com - Deadbeat ListingsAppraiserSites.com - Web Hosting for the Professional Real Estate Appraiser
Find FHA Appraisers - FHA Appraiser Search Commercial Appraisers - Commercial Appraiser Search
Relocation Appraisal - Find Relocation Appraisers Domain Reseller - Business Opportunity
Home Security Buzz - Home Security Info Radon Testing - Radon Gas Info
My Medicare Forum - Medicare Info Stop Smoking Help - Help Quitting Smoking
CordlessPhoneStore.com - Great Cordless Phones AndroidTabletCity.com - Android Tablet Computers

Follow AppraisersForum.com:          Find us on Facebook            Follow us on Twitter


All times are GMT -5. The time now is 07:35 AM.

SiteMap: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93