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 08-15-2009, 01:19 PM
Alyssa Stockwell Alyssa Stockwell is offline
 
Join Date: Jul 2006
State: Florida
Professional Status: Appraiser Trainee
Posts: 5
Default 1 report - "Subject To" and "As Is"?

Appraisal completed "subject to" with list of repairs and an estimate by a general contractor. U/W has come back and needs a line added to the report stating what the "as is" value would be. So to me this sounds like they want two appraisals in one report for one fee (of course). Am I incorrect when I say you need to order a new appraisal completed "as is" and I cannot just add a line to the appraisal. The u/w says we do this all the time blah blah. Is this a violation of USPAP?

Yes, my supervisor discussed it with the loan processor prior to completion. Only when it was complete and went to u/w was the "as is" value requested as a condition.

Last edited by Alyssa Stockwell : 08-16-2009 at 07:13 AM.
Sponsored Links

  #2  
Old 08-15-2009, 02:51 PM
CANative's Avatar
CANative CANative is online now
 
Join Date: Jun 2003
Location: Hopland, CA
State: California
Professional Status: Certified Residential Appraiser
Posts: 44,610
Default

Did you (or your supervisor if you're are a trainee) discuss completing an appraisal subject to repairs?

If not, you should have, so I don't really blame them at this point for wanting an "as is" report at no extra fee because "as is" was probably what they were expecting.

Yes... simply adding a line or two stating the "as is" value opinion in a summary report would probably involve several USPAP violations. That doesn't mean you can't include two opinions of value in the same report.
__________________
"OMG! What's wrong with you?"
  #3  
Old 08-15-2009, 05:05 PM
leelansford leelansford is offline
 
Join Date: Mar 2002
State: Illinois
Professional Status: Certified Residential Appraiser
Posts: 13,472
Default

Quote:
Originally Posted by Alyssa Stockwell View Post
Appraisal completed "subject to" with list of repairs and an estimate by a general contractor. U/W has come back and needs a line added to the report stating what the "as is" value would be...

1st, what is requested (2 opinions of value) could be communicated in a single report.

2nd, HOWEVER, merely adding a single-line statement as the second opinion of value (in your Summary Appraisal Report) is a "no-no".

Think of it this way: You understand (and, the client understands) that you could not provide a single-line statement for the first opinion of value and have it be a compliant appraisal. Thus, how could the second opinion of value communicated in such a manner constitute a compliant appraisal? The short answer: It would not be a compliant appraisal.
__________________
Lee Lansford, IFA
"My opinions & my opinions only!"
  #4  
Old 08-15-2009, 06:41 PM
Paul Isolda's Avatar
Paul Isolda Paul Isolda is offline
 
Join Date: May 2004
Location: Stamford, CT
State: Connecticut
Professional Status: Certified Residential Appraiser
Posts: 998
Default

For a federally related transaction, you are REQUIRED to provide an "as is" value when your are providing a "when complete" value. You should have known this and quoted a fee that would cover all the work necessary.
__________________
Trying to win the war of attrition
  #5  
Old 08-15-2009, 08:02 PM
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 Paul Isolda View Post
For a federally related transaction, you are REQUIRED to provide an "as is" value when your are providing a "when complete" value. You should have known this and quoted a fee that would cover all the work necessary.
If it is a residential report, it is highly unlikely to be a federally related transaction.

Still, it sounds like someone failed to communicate properly with their client to develop an appropriate scope of work.
__________________
"Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world."
  #6  
Old 08-15-2009, 08:15 PM
Lobo Fan's Avatar
Lobo Fan Lobo Fan is offline
 
Join Date: Nov 2004
Location: Rio Rancho, NM
State: New Mexico
Professional Status: Certified Residential Appraiser
Posts: 5,892
Default

If you used a repair addendum there will be a place for an as repaired value.
  #7  
Old 08-16-2009, 07:22 AM
Carnivore's Avatar
Carnivore Carnivore is offline
 
Join Date: Jan 2002
Location: Queen City
State: North Carolina
Professional Status: Certified Residential Appraiser
Posts: 12,559
Default

1234567890

never mind! The inbound lines have to be defined before we can engage in this argument.

Quote:
Originally Posted by Couch Potato View Post

Still, it sounds like someone failed to communicate properly with their client to develop an appropriate scope of work.
I agree with this wholeheartedly.

Last edited by Carnivore : 08-16-2009 at 08:21 AM.
  #8  
Old 08-16-2009, 12:28 PM
Terrel L. Shields's Avatar
Terrel L. Shields Terrel L. Shields is offline
 
Join Date: May 2002
Location: Springtown, AmeRica
State: Arkansas
Professional Status: Certified General Appraiser
Posts: 38,650
Default

Quote:
If it is a residential report, it is highly unlikely to be a federally related transaction
au contrare. If it is in poor condition and needs extensive repairs, then the loan in unlikely to be going into secondary market. A regulated bank is probably making the loan and if over $250,000...it is regulated as an FRT...and they are fond of both the 'as is' value and the 'subject to' value.

In the case of a new construction the ' as is' would be the site value. In a repair situation, you likely would just use 3 similar comps.
__________________
"What does not kill you, makes you stronger, except bears. Bears will eat you"
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 10:43 PM.

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