1004p

[djd09]

so the craigslist inspector are noting sump pumps. nice.

 

[Terrel L. Shields]

so the craigslist inspector are noting sump pumps. nice.

functional appliances, cracks in the foundation, sheetrock, frayed carpeting, hail dents in gable ends, the crematorium next door, etc. Sure. Trust me. I never lie and I'm always right.

 

[bnmappraisal]

It's still all about the fee(s)

 

[djd09]

functional appliances, cracks in the foundation, sheetrock, frayed carpeting, hail dents in gable ends, the crematorium next door, etc. Sure. Trust me. I never lie and I'm always right.

stained carpet, water marks on the ceiling, outbuildings, patios, fireplaces, window screens, and just for kicks the percentage of finished basement.

 

[Elliott]

1234567890

 

[Overimprovement]

It's still all about the fee(s)

Part fee, part E&O. But I would say mostly fee, yes.

Folks, this is a 1004 without subject interior inspection, sketch, or comp inspection. I don't care what others say, I feel very strongly that this DOES have the potential to COMPLETELY supplant the 1004, and its current intended uses/users as we know them. If it wasn't then why not simply continue using the desktop reports as they exist, with only the interior inspection/sketch being provided by the 3rd party as an add-on??? No, this one is a game changer.

So, let's say your market's C&R for non-complex 1004s is $400. Let's further say that the proposed fee for the 1004P will be $150.

Who here thinks their subject inspection/sketch and comp exterior inspections are worth $250 of that $400, or 62.5%?

This is NOT about speed, efficiency, or quality to Fannie. This IS about saving a buck, and robbing each and every one of us.

JUST SAY NO! Get together with every appraiser you know in your market and explain why they should just SAY NO as well.

What should our fee be on these? How about our normal 1004 fee, MINUS whatever they are paying their 'inspectors', MINUS whatever we think our comp driving is worth.

Me? I wouldn't touch one for under $300. If I need to write these reports at $150 to put food on the table, I will quickly seek another career, and that is a 100% fact. But I won't leave the profession without telling every lender and AMC I work for why.

 

[Proactive]

1004 fee minus current reinspection fee ($150 in my market) equals 1004P fee. Seems reasonable to me.

 

[ICT RE]

stained carpet, water marks on the ceiling, outbuildings, patios, fireplaces, window screens, and just for kicks the percentage of finished basement.

For those of us where finished basements are the norm, the low ball inspector is sort of terrifying. I mean there's a reason most of these "inspectors" have time available in their professional lives for stuff like this, right? You think the competent agents with their crap together (the top 10% or 20% or whatever of that profession) are going to be doing these? No, they're busy. The home inspectors? Not them either, busy with better work. General contractors? Keep wishing, same as the home inspectors. It is going to be people in search of work through what has been called the "gig economy", and while you can't paint them all with the same brush, these folks are by and large the most generally unemployable people in our workforce, if you even want to go out on a limb and call them part of the workforce in the first place. The bottom 80% or 90% of the agent pool are pretty much the same demo.

I maintain that a property inspection in the appraisal context isn't like learning differential equations, but a minimum level of competence, and dedication to that competence, is required. We have an incentive to give a crap with our inspection work, via retaining clients as well as our license and E&O. When there is no incentive to give a crap, via a gig economy bottom feeder, no crap will be given. If you didn't have a driver's license to lose or insurance to maintain, and no threat of punishment, would you obey the speed limit?

 

[Overimprovement]

I maintain that a property inspection in the appraisal context isn't like learning differential equations, but a minimum level of competence, and dedication to that competence, is required.

Think about what separates a $400 1004 from a $25 AVM--mostly subjective factors, perhaps mainly condition, quality, and location. These are the TRUE value add of a good appraiser, and this is what they are seeking to summarily get rid of.

I'm sorry, I have seen too many MLS pictures which make the subject 'appear' to be C3, but actual condition was C4 when I get there. Inspectors will get coerced, either directly, or indirectly JUST like appraisers will, and will not have as strong an incentive for maintaining true integrity. Its far too easy to 'overlook' deferred maintenance, or external condition affecting subject. Don't think the lenders/AMCs won't be tracking who the inspector was on each 'failed' loan due to appraisal not 'hitting the mark' on these things.

So not only do they not have the training and experience to note every important factor about a home, they will not have the incentive to 'tell it like it is' either.

I know I sound jaded, but that is because the fees that seem to be out there for both ends of the hybrid make it clear that $ is the only concern here, not quality, accuracy, speed, or anything else. I agree a desktop with someone else providing an interior inspection/sketch is better than a 2055, but only if the quality and integrity of the inspectors is similar to what the appraiser would have otherwise provided.

If TAT is such an issue, then make it pervasive throughout the industry to allow trainees to complete inspections by themselves, and be able to sign reports with supervisor oversight. The industry still is not allowing that, but will allow Harry the can collector to do these inspections, because he is a self professed real estate person, having lived in some sort of real estate all his life.

 

[George Hatch]

Everyone knows how much time/effort it takes to write a 1004. Add to that the additional research the appraiser will have to do in order to effectively identify the neighborhood attributes (not addressed in an "inspection report"), which properties actually have comparable locations (not addressed in an "inspection report") and reading the report closely enough to form an opinion of the subject's attributes in comparison with the others (which only the appraiser can do regardless of any opinions expressed in the inspection report) and I would expect an appraiser working to spec in a 1004P to be spending *more* time at the desktop to complete a 1004P than on a regular 1004.

The pricing for the work should be commensurate with the time/effort involved. If that happens the total in fees being paid for the entire process including the engagement and "management" of 2 service providers instead of 1 service provider will surely be higher, not lower.

As I see it, the only way the lender pays less is if the appraiser charges less/hour for what they're doing on a 1004P than on a conventional 2055, let alone a 1004.