REO Appraisal

[liddlem07]

I just walked through my first REO appraisal. None of the utilities were on at the time of inspection. How do you handle that? Is there anything else I need to know in regards to the REO appraisal process? Any questions I should ask the lender before proceeding? Thank you for the help.

 

[Dublin ohio]

I just walked through my first REO appraisal. None of the utilities were on at the time of inspection. How do you handle that? Is there anything else I need to know in regards to the REO appraisal process? Any questions I should ask the lender before proceeding? Thank you for the help.

Are they asking for the REO addendum. As far as utilities go. It is what it is. The only utilities I have seen on is the electric if there is a basement w/a sump pump. Idiots took a while to learn that no electric, no sump pump. A heavy rain and you might have an indoor pool. I have seen a few.

 

[sputnam]

I just walked through my first REO appraisal. None of the utilities were on at the time of inspection. How do you handle that? Is there anything else I need to know in regards to the REO appraisal process? Any questions I should ask the lender before proceeding? Thank you for the help.

You handle it by stating in your appraisal report that the utilites were not on at the time of your inspection. Depending on Client guidelines, you may invoke an extraordinary assumption that the utilities are in proper working order. Alternatively, ask your Client whether they want you to proceed or whether they want to pay you an additional fee for returning to the property when the utilities are on.

 

[Bobby Bucks]

Most of those requirements should be clearly stated in the engagement letter. Some REO assignments require an as is and as repaired value. Some only want one active listing, some want 3. Some want the REO addendum, some do not. Some want the 2010 version of the REO addendum which asks more details on the active listings. Some want the repairs itemized and not a lump sum. I prefer using the REO addendum since the preprinted verbiage adds an element of protection. ie, not a contractor, etc. The client should tell you what they require.

 

[J Grant]

Some appraisers mistakenly think they need to find "REO comps" for a subject that is REO-owned (or in pre-foreclosure)

That is not true - though sometimes REO sales are the best comps, orther times, they are not. An REO appraisal usually asks for a market value opinion - though it can also ask for a second market value opinion with a restricted listing /DOM exposure - the client should have it on the engagement letter what they want, or ask. Or have an experienced local appraiser help with the assignment

 

[Sadie]

I just walked through my first REO appraisal. None of the utilities were on at the time of inspection. How do you handle that? Is there anything else I need to know in regards to the REO appraisal process? Any questions I should ask the lender before proceeding? Thank you for the help.

Utilites are frequently off in an REO property.

 

[Sadie]

Your engagement letter should tell you what you need to know. Some want you to find properties that are not distressed sales and some don't. Some want a repair addendum and some don't. You can always call if your questions aren't answered in the engagement letter.

 

[Tom D]

They never pay enough for the REO work you do.

Although, i did like doing the pre foreclosure REO driveby in the zip codes next to mine. Lucky i lived near some poorer zip codes, easiest work i ever had, not a day off then.

 

[Flakey]

The COMPETENCY RULE disclosure requirement calls for the appraiser to disclose a lack of knowledge and/or experience to the client before accepting the assignment, at whatever point in the appraisal process that it becomes apparent to the appraiser that his or her lack of knowledge and experience will prevent the development of credible assignment results. This is referred to as a “competency disclosure

 

[Sadie]

They never pay enough for the REO work you do.

Although, i did like doing the pre foreclosure REO driveby in the zip codes next to mine. Lucky i lived near some poorer zip codes, easiest work i ever had, not a day off then.

I like it. The pay is a little low, but no one complains about the value and no appointments to schedule.