Question for VA Appraisers

[Don Clark]

I have. A good example is SR-2, (b)

For the most part USPAP uses the word STATE ecept in (b),iii,vii,and viii.

iii is Summarize information sufficient to identify the Real Estate.

vii is Summarize the Scope of Work.

viii is Summarize the information analyzed, the appraisal methods and techniques employed. and the reasoning that supports the analyses and opinion, and conclusions;exclusion of the slaes comparison approach, cost approach, or income approach must be explained.

An example of the difference between the 3 report types is found in AO-11, page A-25, lines 146 through 150. (5 lines).

In the same AO, an example of describe is on the same page, lines 121 through 143.(23 lines).

The appraiser is appraising the subject property in it's present condition. Whether it was previously gutted or not is not what is being appraised. Sethetics (or beauty) is in the eye of the beholder. Difference in brand names have little or no place in the appraisal process as long as what is there meets VA MPR's. I may think Window World Windows are just as good for appraisal and MPR purposes as any of the higher priced windows such as Anderson or Pella. GE Monogram may tickle the **** out of a housewife whose husband bought them for her but a Whirlpool appliance or some other economnical brand may be sufficient for MPR's. Besides, many of the appliance may not be real estate. Depends on the manner of attachment, if any.

Now, I am going to go play in another sand pile. This one is getting boring.

 

[Don Clark]

Might I suggest VA appraisers or anyone else signing the Fannie 1004 have to adequately described the subject.

So "Beautifully renovated" is an acceptable summarization of a property that was stripped to its studs and rebuilt?

I guess I'm wrong considering two USPAP instructors have now defended "Beautifully renovated", never mind that its subjective and amateur.

Edit: Another suggestion. Anyone thinking "Summary" Report means a sentence or two about any subject in the report should look up the definition of summary.

1004 Uniform Residential Appraisal Report

Describe the condition of the property(including needed repairs, deterioration,renovations,remodeling,etc.),

And, tada, drum role please, we have 5 lines to do that in. Sounds like a Summary to me.

 

[Non Sequitur]

I guess you're right Don, "Beautifully renovated" adequately "describes" a property stripped to its studs and rebuilt.

And, tada, drum role please, we have 5 lines to do that in. Sounds like a Summary to me.

Well, I'm with you I hate addendums, no reason ever to use up more than those 5 lines. I'll give the appraiser credit, he left plenty of blank spaces. But here's the funny thing, among his 24 pages he had plenty of room for the FIRREA Addendum and 3 full pages of boiler plate about how he relied on data that may or may not be reliable.

Oh and the definition of summary for anyone who's interested:

1. Presenting the substance in a condensed form; concise: a summary review.
2. Performed speedily and without ceremony: summary justice; a summary rejection.
n. pl. sum·ma·ries A presentation of the substance of a body of material in a condensed form or by reducing it to its main points; an abstract.

I guess "Beautifully renovated" is a concise and condensed decription of the property.


So I'm converted. Beautifully renovated is now my standard description, or my "summary" as I'll now claim. I'm going to print out this thread just in case I'm ever in front of my board or a judge and show them what two USPAP instructors claim to be adequate. Now if I could only get my dim-wit clients to understand what summary is and those uneducated buyers and sellers to understand that quality doesn't matter.

 

[incognito]

I sitting here wondering how "Beautifully renovated" is at all relevant to the OP's question regarding window screens???

 

[Mr Rex]

Beautifully renovated cries out for interior photos. Or does VA discourage pics due to file size? Also, why does a beautifully renovated down to studs house with new windows not have screens?

 

[Non Sequitur]

Also, why does a beautifully renovated down to studs house with new windows not have screens?

Four screens were missing out of, if I had to guess, 15+ windows. From what I was told the utility, garage, kitchen and dining are missing screens. The HO, during the course of the reno either misplaced or just flat out didn't install and lost them in the shuffle. But remember, it isn't just about the screens. The seller is fed up with the whole process and that this minor detail didn't come up until closing, long after other negotiations were done. The screens would have been installed but the turn around time for the re-inspection called for in the report killed the end of the month closing and now has the seller questioning everything else.

I sitting here wondering how "Beautifully renovated" is at all relevant to the OP's question regarding window screens???

It's just the ebbs and flows of a typical AF thread.

I'll be the first to acknowledge this turned into a train wreck. With that said, IMO this thread reflects what the business has become. There's no standard for anything.

The NAR teaches situational ethics, maybe we as an industry should just admit that situational USPAP (and other regs) are the reality of our profession.

 

[Don Clark]

The NAR teaches situational ethics, maybe we as an industry should just admit that situational USPAP (and other regs) are the reality of our profession.

Can't speak for NAR, but I quoted you directly from USPAP and an Advisory Opinion on what USPAP considers Summarize to mean. Then you quoted some dictionary meaning. Guess if you can't win with USPAP then you throw in another meaningless definition, meaningless in context of what is required by USPAP. You are using a politician's tactic of moving the goal post. If your business declines you can always run for congress.

And, you just gave a good example of someone who thinks they know what is in USPAP, but actually offers examples of what is not in USPAP.

 

[Mike Garrett RAA]

For the record, I made no comment about the quality of the comment and probably would have been more "descriptive" in my summation about the property. And for the record, I do include a number of interior photos of the subject usually including living room, kitchen, family room, garage interior, and systems such as furnace and water heater. If there has been renovation then I will include photos of the baths too. A photo is worth thousands of words.

Was once told the real art to is adequately "describe" in just five lines as that is a real summary which is consistent with the report format (A Summary Appraisal Report). Was also told underwriters and reviewers dislike having to thumb back and forth between the appraisal report and addenda. A very sage appraiser said "there should be sufficient information in the form for the reader to be lead to your value conclusion". "all other stuff is just fluff". Now that may or may not be true...but it is wise council. How many lines exist in the report it's self for additional comments? 39 I believe.

Any appraiser still including the FIRREA addendum is woefully behind the times. Same is true with the USPAP addendum...all of which was prior to the new, improved (laugh) 1004 form of 2005. Wow, that seems like just yesterday...at least at my age.

Best wishes

 

[Non Sequitur]

Can't speak for NAR, but I quoted you directly from USPAP and an Advisory Opinion on what USPAP considers Summarize to mean.

No you didn't. You pointed out what a Summary Report is according to USPAP. USPAP doesn't define the word summary or summarize. I can only speculate but I would bet it's because most people know the meaning and the ASB had no reason to re-define the word.

Then you quoted some dictionary meaning.

Is there another? Post a cite.

Guess if you can't win with USPAP then you throw in another meaningless definition, meaningless in context of what is required by USPAP.

Again, post a cite where USPAP defines the word summary or summarize and what is expected in the context of USPAP. If you think "Beautifully renovated" as a stand alone description is an adequate summarization of any property than come out and say it. Take a stand, I am.

You are using a politician's tactic of moving the goal post.

I stayed on point.

If your business declines you can always run for congress.

Does it pay more than a USPAP Instrucor?

And, you just gave a good example of someone who thinks they know what is in USPAP, but actually offers examples of what is not in USPAP.

I didn't offer any USPAP examples. But you offer, again and again, reasons why USPAP has to be constantly revised and why Q&As are a monthly treat for everyone.

 

[CCAAMO]

The appraisal should include enough information about the subject property that the intended user understands the quality and condition of the subject. Simple stating " Beautifully renovated" is not adequate given the different quality levels of materials and how much of the home was truly renovated and what level of " beautifully" was achieved. Clearly, since the reviewer could not determine the level of renovation from the appraisal comments, the appraiser fell short of what most would consider an acceptable appraisal.

Considering VA pays full fee, the no reason for the appraiser not to spend a few extra minutes on the appraisal.