"Minimum Requirements" ?

[Tom D]

Fannie has no objection about good work done without permits as per their latest news letters.
And it may be common to the area. I wouldn't ignore it unless the lender said it and i could put it in my work file and report. Is this an extra ordinary assumption that it can't have it.

Apparently, the local authorities didn't make the neighbors undo their unpermitted uses. Never had a lender do that, or even know something like that about a house.

So be careful.

 

[Fernando]

Fannie has no objection about good work done without permits as per their latest news letters.
And it may be common to the area. I wouldn't ignore it unless the lender said it and i could put it in my work file and report. Is this an extra ordinary assumption that it can't have it.

Apparently, the local authorities didn't make the neighbors undo their unpermitted uses. Never had a lender do that, or even know something like that about a house.

So be careful.

When I started appraising, lenders were very strict about nonpermitted work. Caused me lot of problems.
Seems like lenders and Fannie more lenient especially unpermitted ADUS in this climate of housing shortage in CA.

 

[Terrel L. Shields]

During Covid and even before if I do an exterior, I may pick through the windows thus technically never went inside.

peek? I suppose. That's an excellent way to get shot if the homeowner does not know you are going to be snooping around their house.

Would an appraiser who wishes to conduct a brief interior inspection of a 2055 exterior-only inspection, in order to reduce reliance upon EA's,

The EAs are your friend. If you don't have sufficient information about the interior, then you need to inform the client and withdraw. Relying upon personal communication with a borrower whom the client apparently does not want to contact the borrower-owner could backfire. I heard about an appraiser who lied to the owner that he was an "assessor" and gained entry. That backfired when the guy got suspicious and called the assessor who informed him that they were not allowed inside the house and no one was doing field work at the time. The house was in pre-foreclosure and the owner then jumped the bank demanding answers, who then lit into the appraiser for violating the very intent of the bank to assess the value before initiating foreclosure discretely.

2055s in my book are a real joke but whatever, you do you. Do I do drive-bys. Sometimes. But I do only direct bank work, no secondary market and I do so with their permission. I was doing a large commercial property that includes a 1,200 SF shop building being rented out. The occupant was gone, no one had the key, but the property manager gave me a detailed description of the property interior. This building is a tiny part of the value of the overall property. I've also done drive-bys for them that were pre-foreclosure that the owners had already left.

 

[glenn walker]

I'm gonna get in there no matter what !
If I'm the lender and borrower at some point this starts to get a little creepy and I'm getting a new female appraiser and not sending a older male appraiser. Just saying ....lol

 

[Fernando]

peek? I suppose. That's an excellent way to get shot if the homeowner does not know you are going to be snooping around their house.

Of course, I let the borrower/occupant know if they object in peeking.
If an appraiser needs step by step process in how these common sense things to do, they shouldn't be an appraiser.

The EAs are your friend. If you don't have sufficient information about the interior, then you need to inform the client and withdraw. Relying upon personal communication with a borrower whom the client apparently does not want to contact the borrower-owner could backfire. I heard about an appraiser who lied to the owner that he was an "assessor" and gained entry. That backfired when the guy got suspicious and called the assessor who informed him that they were not allowed inside the house and no one was doing field work at the time. The house was in pre-foreclosure and the owner then jumped the bank demanding answers, who then lit into the appraiser for violating the very intent of the bank to assess the value before initiating foreclosure discretely.

2055s in my book are a real joke but whatever, you do you. Do I do drive-bys. Sometimes. But I do only direct bank work, no secondary market and I do so with their permission. I was doing a large commercial property that includes a 1,200 SF shop building being rented out. The occupant was gone, no one had the key, but the property manager gave me a detailed description of the property interior. This building is a tiny part of the value of the overall property. I've also done drive-bys for them that were pre-foreclosure that the owners had already left.

Appraisers still need to do their due diligence in obtaining as much information on exterior appraisals. That's why my fees are not that discounted and lenders don't understand my high fees.

 

[Terrel L. Shields]

Appraisers still need to do their due diligence in obtaining as much information on exterior appraisals.

You work with what you have. There is no need to exceed that requirement.

 

[ZZGAMAZZ]

A separate ADU is worth more than an ADU converted in a garage besides the fact it may not be done legally and you lose garage parking.

....except that a guest unit built without permits isn't an ADU, at least here in SoCal, at least in my opinion. Even if a DU that was built before current statewide ADU standards were implemented a few years ago, it would require building permits to be recognized by the jurisdiction as a legal ADU. Although the distinction between a jurisdiction's definition of real property improvements and the appraiser's definition often differs, I think the two should/must be identical in this scenario. HOWEVER, I would like to know how peer CA appraiser's feel about this issue....

 

[ZZGAMAZZ]

When I started appraising, lenders were very strict about nonpermitted work. Caused me lot of problems.
Seems like lenders and Fannie more lenient especially unpermitted ADUS in this climate of housing shortage in CA.

Several years ago when I did my last appraisal in Pasadena, I learned that the city requires permits for all improvements prior to any sale or lease, with any non-permitted areas either permitted or demoolished prior to the transaction being completed. Redlands is similar. Maybe why the aesthetics of the real property in those two jurisdictions is appealing????

 

[Fernando]

....except that a guest unit built without permits isn't an ADU, at least here in SoCal, at least in my opinion. Even if a DU that was built before current statewide ADU standards were implemented a few years ago, it would require building permits to be recognized by the jurisdiction as a legal ADU. Although the distinction between a jurisdiction's definition of real property improvements and the appraiser's definition often differs, I think the two should/must be identical in this scenario. HOWEVER, I would like to know how peer CA appraiser's feel about this issue....

I find lenders more lenient whether permitted or not especially if appraiser says it's built in workmanlike manner.
Depends on the market reaction. If appears well constructed, market sees it has value.

 

[Fernando]

Several years ago when I did my last appraisal in Pasadena, I learned that the city requires permits for all improvements prior to any sale or lease, with any non-permitted areas either permitted or demoolished prior to the transaction being completed. Redlands is similar. Maybe why the aesthetics of the real property in those two jurisdictions is appealing????

Progressive CA politicians have pushed cities to have more housing especially affordable housing.
They like ADUs to help meet their quota in providing set number of units or else face penalties.