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  #1  
Old 09-23-2011, 01:26 PM
V. Nightshade V. Nightshade is offline
 
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Default Prior appraisal of property and contract section

I appraised a property about 5 months ago on a purchase of an REO. The transaction concluded, and the borrower is refinancing with the same lender, who gave me the assignment to do the appraisal. (I had already done the first.) So of course, that's disclosed. My quesion relates to the Contract Analysis. This is NOT a purchase, but there is a listing history. On the question about analyzing the contract for the subject purchase transaction, it seems that I would say "YES' and disclose my prior engagement right here and explain it. On the other hand, wouldn't that violate USPAP, as the that was a different transaction, and it's only by chance it's the same lender. So what's the right answer? Thanks!
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Old 09-23-2011, 01:41 PM
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USPAP does not require that you be specific about the prior appraisal service, just that you disclose a prior service within the past 3 years. That is all that I would include in the report, and certainly not in that section, but in a Supplemental Certification section or some other similarly titled section of an addendum and/or the letter of transmittal etc.
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Old 09-23-2011, 01:43 PM
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Why would you analyze a contract that pertains to a different transaction?

To quote Nancy Reagan: "Just say NO."

I usually enter the phrase "This section does not apply" in the contract comment section.
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Old 09-23-2011, 01:46 PM
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Quote:
Originally Posted by Mr Rex View Post
USPAP does not require that you be specific about the prior appraisal service, just that you disclose a prior service within the past 3 years. That is all that I would include in the report, and certainly not in that section, but in a Supplemental Certification section or some other similarly titled section of an addendum and/or the letter of transmittal etc.
Exactly. And, it is not just a prior appraisal. It is any service performed for or on the subject property in the past 3 years. I would also put it on a page that requires a signature. On a URAR under the sales grid would be such a place.
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Old 09-23-2011, 01:50 PM
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Check state laws, too. They may require more specificity.
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Old 09-23-2011, 02:13 PM
V. Nightshade V. Nightshade is offline
 
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Thanks! I didn't mean to open a can of worms. Later in the appraisal, let's suppose they've fixed up the place and it's no longer a mess and I need to explain why the current opinion of value is higher. It seems to intuitive to say, "they cleaned up the mess since I was there last" (Of course I wouldn't phrase it like that!) rather than boilerplate about presumed prior condition as an REO, when I KNOW what the prior condition was. I accept that, however. Anyway, CaNATIVE, with the new UAD I don't think you are permitted to put in comments like "Does not apply" unless you put them in an addendum. My guess is the rules meister will complain. "There appears to be text, but no check box is checked." AARGH! Actually, this makes my life easier.
  #7  
Old 09-23-2011, 02:32 PM
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Originally Posted by V. Nightshade View Post
Later in the appraisal, let's suppose they've fixed up the place and it's no longer a mess and I need to explain why the current opinion of value is higher.
It's more than just cleaning it up; it's not about them asking you...you must explain the prior sale. The property was a REO and sold below market value. This is typical of REO properties. Financial institutions are not typically motivated and there was undue stimulus to sell, and sold below market value. Due to the market aversion to these sales typical problems associated with them, the sale price is typically not a good indication of the most probable price that this property would bring in an open market with adequate exposure by a typically motivated buyer and seller, as defined by Fannie Mae.
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Old 09-23-2011, 05:41 PM
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The property was a REO and sold below market value. This is typical of REO properties.
No. NO...NOOOOO. It did not sell below market value. It sold for market value, the market value of that particular property. When are you going to comprehend market value ResGuy? I mean I know you're just a trainee...oh uh..uh... yeah. Good luck ResGuy.
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Old 09-23-2011, 06:08 PM
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No. NO...NOOOOO. It did not sell below market value. It sold for market value, the market value of that particular property. .
I agree they sell at market value for that particular property with that condition of sale, which is a REO sale...but those particular types of sales (REOs) typically sell below market value of a sale under all conditions requisite to a fair sale of a typically motivated buyer/sell and no undue stimulus to sell...to which defines the applicable market value for your appraisal.

You should try taking some appraisal classes. Certified Appraiser status is reserved for appraisers, not for General Public.
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Old 09-23-2011, 10:28 PM
leelansford leelansford is offline
 
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Quote:
Originally Posted by V. Nightshade View Post
Thanks! I didn't mean to open a can of worms. Later in the appraisal, let's suppose they've fixed up the place and it's no longer a mess and I need to explain why the current opinion of value is higher. It seems to intuitive to say, "they cleaned up the mess since I was there last" (Of course I wouldn't phrase it like that!) rather than boilerplate about presumed prior condition as an REO, when I KNOW what the prior condition was. I accept that, however. Anyway, CaNATIVE, with the new UAD I don't think you are permitted to put in comments like "Does not apply" unless you put them in an addendum. My guess is the rules meister will complain. "There appears to be text, but no check box is checked." AARGH! Actually, this makes my life easier.

This is not all that complex of a situation...though you are making effort to make it so .

You are obligated to "analyzee" the prior sale in relationship to your opinion of current market value. You are in a very good position to do do. Thus, "do so" and move on to the next assignment.
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