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 > Urgent - Help Needed
Register Help Our Rules Calendar Archives Mark Forums Read


Closed Thread
 
Thread Tools
  #1  
Old 10-07-2011, 11:48 AM
Ca Ar Independent's Avatar
Ca Ar Independent Ca Ar Independent is offline
 
Join Date: Sep 2011
State: California
Professional Status: Certified Residential Appraiser
Posts: 1,299
Default "underwriting conditions" valid or not?

Can anyone please clearly define what "underwriter request" is legitimate and part of "clarification" of the appraisal and what is NOT legitimate and outside the scope of work. I have had occasion (one currently) where the "Underwriter" (for the bank or the mortgage insurance company?) has requested an "appraisal revision" in which I am asked to add an addendum and complete the cost approach for a detached condo (on the condo form). From my perspective, this is outside the appraisal scope of work, not my area of expertise and essentially the lender's attempt to have me do additional work so they can close the loan. I have put the request back to their appraisal department for direction, but what IS and what IS NOT my responsibility is unclear. Is the appraiser required to do endless revisions each time a different UW looks at the appraisal? AM I required to comply with "requests" from the mortgage insurance company? My mortgage broker friends are unclear about this...as am I.
Sponsored Links

  #2  
Old 10-07-2011, 11:58 AM
Randolph Kinney Randolph Kinney is offline
 
Join Date: Apr 2005
Location: SoCal
State: California
Professional Status: Certified Residential Appraiser
Posts: 19,634
Default

Quote:
Originally Posted by Ca Ar Independent View Post
Can anyone please clearly define what "underwriter request" is legitimate and part of "clarification" of the appraisal and what is NOT legitimate and outside the scope of work. I have had occasion (one currently) where the "Underwriter" (for the bank or the mortgage insurance company?) has requested an "appraisal revision" in which I am asked to add an addendum and complete the cost approach for a detached condo (on the condo form). From my perspective, this is outside the appraisal scope of work, not my area of expertise and essentially the lender's attempt to have me do additional work so they can close the loan. I have put the request back to their appraisal department for direction, but what IS and what IS NOT my responsibility is unclear. Is the appraiser required to do endless revisions each time a different UW looks at the appraisal? AM I required to comply with "requests" from the mortgage insurance company? My mortgage broker friends are unclear about this...as am I.
You can explain that the cost approach is not applicable in this assignment and is not meaningful and not necessary to determine market value in a condominium development. There is an undivided interest in common ownership that makes this outside the scope of work.
  #3  
Old 10-07-2011, 12:05 PM
Riick's Avatar
Riick Riick is offline
 
Join Date: Aug 2007
Location: DuPont: "Better Living through Chemistry"
State: Delaware
Professional Status: Certified Residential Appraiser
Posts: 9,020
Default

^^^
EXACTLY..
What is the cost to build when the owner of a condominium unit owns "the structure" from the paint film inward, and in one sense, owns airspace and the right to use that space.
(( In some areas it's the paint film, in others, inward from the wallboard.))
__________________
Somebody should start calling it “Income Diversity”. How could progressives be against it then?
  #4  
Old 10-07-2011, 12:16 PM
Ca Ar Independent's Avatar
Ca Ar Independent Ca Ar Independent is offline
 
Join Date: Sep 2011
State: California
Professional Status: Certified Residential Appraiser
Posts: 1,299
Default

Quote:
Originally Posted by Randolph Kinney View Post
You can explain that the cost approach is not applicable in this assignment and is not meaningful and not necessary to determine market value in a condominium development. There is an undivided interest in common ownership that makes this outside the scope of work.
This (almost verbatim) comment is already IN the appraisal in the approach to value comments. Thank you for taking the time to respond. I believe this is a ridiculous request and well outside of the scope of work.
  #5  
Old 10-07-2011, 12:31 PM
Smokey Bear's Avatar
Smokey Bear Smokey Bear is offline
 
Join Date: Dec 2004
Location: The "OC" in Republican Land (Oh no!)
State: California
Professional Status: Certified Residential Appraiser
Posts: 12,470
Default

CA_AR - off topic, but what part of Cali are you in? I'm making a list of OC (or closeby) appraisers to schedule a lunch so we can all meet each other.
__________________
For God's sake, if you need to take legal action, GET A LAWYER. I'm not giving legal advice.
  #6  
Old 10-07-2011, 12:54 PM
23Degrees's Avatar
23Degrees 23Degrees is offline
 
Join Date: Jan 2004
State: California
Professional Status: Certified Residential Appraiser
Posts: 934
Default

Beyond the argument that it is not necessary etc. that others have brought up it could also be helpful to point out that this was not a condition of the original engagement.
  #7  
Old 10-07-2011, 01:09 PM
zdfenton's Avatar
zdfenton zdfenton is offline
 
Join Date: Nov 2008
State: Wisconsin
Professional Status: Certified General Appraiser
Posts: 369
Default

What's the big deal if you have to add it or not? If your fee didn't include a cost approach, let them know what you will additionally bill them for this service
  #8  
Old 10-07-2011, 03:21 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: 39,379
Default

You can extract a contributory value for the site, but obviously that "land" value includes the amenities of the development and is an undefinable co-interest in property. I would simply point out that it was not in the original scope of work and is unnecessary and you are NOT going to do it.
__________________
At our age, you can't win, lose as slowly as possible.-R.Green
  #9  
Old 10-07-2011, 04:06 PM
leelansford leelansford is offline
 
Join Date: Mar 2002
State: Illinois
Professional Status: Certified Residential Appraiser
Posts: 13,604
Default

Quote:
Originally Posted by Terrel L. Shields View Post
You can extract a contributory value for the site, but obviously that "land" value includes the amenities of the development and is an undefinable co-interest in property. I would simply point out that it was not in the original scope of work and is unnecessary and you are NOT going to do it.

As Brother Terrel notes, if the CA was not a requirement of the assignment, the request following the communication of the appraisal is nothing more than a new offer for a new service.
__________________
Lee Lansford, IFA
"My opinions & my opinions only!"
  #10  
Old 10-07-2011, 04:16 PM
JamesRockford JamesRockford is offline
 
Join Date: Oct 2010
Location: Paradise Cove, Malibu, CA
State: California
Professional Status: Certified General Appraiser
Posts: 920
Default

The Cost Approach is not applicable to Condos.

If anyone disagrees, please explain in detail how you arrive at the land value.

Last edited by JamesRockford : 10-07-2011 at 04:36 PM.
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 06:32 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