1004 for private, non mortgage related purposes

[incognito]

I simply despise using the GP form for residential appraisals. Therefore, I have been doing my non-mortgage residential appraisals in the 1004 form.

After I complete the appraisal, I print it to PDF. In Adobe, I change the "INTENDED USE" statement on page 5 of the 1004 to read whatever the real use is, such as "to assist the client in establishing a list price for the subject property". I print from Adobe, and I believe I have a USPAP compliant, nit pick proof appraisal report. Of course my scope reflects the change as well.

FNMA states that we cannot change the form in any way, FOR FNMA work. I can change it any way I please for non-mortgage work, as long as it is USPAP compliant, and suites the clients needs (scope).

Why not????

 

[Carnivore]

I simply despise using the GP form for residential appraisals. Therefore, I have been doing my non-mortgage residential appraisals in the 1004 form.


Why not????

Why not give a simple one letter narrative with appropriate certifications?

For a CG that should be a 30 minute job, tops.

 

[Tony V]

Are you refering to the old 1004 (which I use for these reports) or the new 2005- 1004..

be aware that the top of the new one states that this form is for lending purposes....

On top of that a client can't take the report and try to use it for lending..

 

[Kevin Mc]

Ditto.

Are you refering to the old 1004 (which I use for these reports) or the new 2005- 1004..

be aware that the top of the new one states that this form is for lending purposes....

On top of that a client can't take the report and try to use it for lending..

use the old form for any non-lending work.

 

[Mike Kennedy]

I simply despise using the GP form for residential appraisals.


Why?

 

[Carnivore]

I simply despise using the GP form for residential appraisals.


Why?

I will bet because the market fee is so low that the GP form is not profitable, especially if you dont use it often.

That is actually a very good reason not to use any specific format.

 

[Thomas N. Morgan]

Your feeling of revulsion about a GP for residential appraisals: Whose form is it? The AI form is a GP form. It serves its purpose and most suppliers have it. Bradford Technologies has their version of a GP Form. I think ACI has one. Maybe other firms do, too.

a la mode has several GP forms: A GP for SFR's (letter or legal), a form they call the "Consumer" form for SFR's. (It is a masterpiece). They have a GP for condo's, a GP Land form, and others. The GP for SFR's is a long form, Very formal, lots of room to say what's needed.

Several of the early GP forms look like they were thrown together in an hour so. If that's all you have, I understand how you feel.

The current l004 asks a lot of dumb questions that only a lender cares about. Over time, Fannie and Freddie have modified the old URAR until it finally has become a loan underwriting form rather than an appraisal form.

 

[incognito]

I am referring to the NEW 1004.

As has been suggested, it is a simple matter of economics. The client wants the appraisal on a form. I only want to produce one residential form, (ever, under any situation where the 1004 form would be acceptable with regards to scope and USPAP) due to the efficiencies of only having one set of standard comments, one comparable database, the ability to clone older reports of similar properties, on set of boilerplate responses. etc., and the simple fact that I can produce the report more quickly, being more familiar with it.

Lets face it, NO ONE types a form appraisal from scratch, EVERY SINGLE TIME. Heck, MAI's use 95% of the same BS within any given narrative commercial report.

Granted, IF the client would be satisfied with a letter report, that would be another issue, but my question is, IF A form report is acceptable (and desired) by the client, and I feel I can meet the scope and USPAP with the form, why shouldn't I just change the intended use on the new 1004?

Tony V:

The top of the form states

The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property.

That is a broad statement, and is not specific to lending at all.

There are certainly no expectations on my clients behalf that the appraisal would be suitable for lending purposes. That goes without saying, because as we know, the lender would have to order the report...

 

[incognito]

Carnivore writes:

For a CG that should be a 30 minute job, tops.

Good one! Of course that wouldn't be true, because as a CG I would have to review the subsoil maps, have an endangered species survey and wetlands survey performed, take a look at feasibility study for my comprehensive HBU analysis, do a couple of discounted cash flow analysis, I always throw in an after tax internal rate of return analysis, would certainly have to find out the triple net rent rates for my income approach, and interview a contractor for my cost approach...

Fortunately, if I use the form, I can skip all of that stuff!

 

[incognito]

sorry, double post...