1007 without an appraisal

[The Argus]

Has anyone been asked to do a 1007 for a property they did not appraise?

If so, does Alamode have a 1007 major form?

First time Ive had this request.

Thanks

 

[hastalavista]

Jay-

In my opinion, if you are going to do a rent survey for a subject property (estimate its market rent) that is an appraisal.
The 1007 form inadequately meets the necessary SR-2 (summary) requirements.

When I get this request, I have to complete the development and reporting requirements that are necessary (per SR1 & SR2). In addition to the signed certification, that means about 3-4 pages of discussion on identifying the subject, discussing its characteristics, discussing the market, identifying H&BU of the subject (you get the picture), etc.

I charge less than my typical mortgage-finance appraisal but a multiple of what I understand most AMCs pay for a rental survey (which is, I think, anywhere between $50 and $100).

Note: I am assuming this assignment is not connected to an appraisal that you completed. It is its own, stand alone assignment.


Good luck!

 

[NORTON]

Jay-

In my opinion, if you are going to do a rent survey for a subject property (estimate its market rent) that is an appraisal.
The 1007 form inadequately meets the necessary SR-2 (summary) requirements.

When I get this request, I have to complete the development and reporting requirements that are necessary (per SR1 & SR2). In addition to the signed certification, that means about 3-4 pages of discussion on identifying the subject, discussing its characteristics, discussing the market, identifying H&BU of the subject (you get the picture), etc.

I charge less than my typical mortgage-finance appraisal but a multiple of what I understand most AMCs pay for a rental survey (which is, I think, anywhere between $50 and $100).

Note: I am assuming this assignment is not connected to an appraisal that you completed. It is its own, stand alone assignment.


Good luck!

so true...so damn true

 

[The Argus]

Thanks for your input.

 

[CSP 49]

We used to get these requests when someone was purchasing a new primary residence and their current residence was transitioning to a rental. I always refused. Most of these also came with a request for a 216. We always turned them down. I couldn't view the property to verify room mix, condition and other factors that would impact the rental rate.

 

[gregb]

Assume if one is asked to complete a 1007, a full inspection of the subject is required to verify condition of the improvements etc.

 

[PropertyEconomics]

Denis hit it on the head ... a determination of market rent for a subject property is an appraisal .. the value is the rent conclusion ... requirements of both Standard 1 and 2 must be met including all development, all reporting, and a signed certification.

 

[Restrain]

You can cover it in the SOW. The question comes if there is sufficient data to complete the assignment. You can cover it with a drive-by of the exterior of the subject and an interview with the borrower, as an example. USPAP does not require an inspection, but does require enough data to complete the report competently. Then you have to do the certifications.

 

[zdfenton]

It certainly is an appraisal, meaning Standard 1 & 2 must be followed. See FAQ#158 in 2012-13 USPAP

[url]http://USPAP.org/[/URL]

 

[The Argus]

Fortunately, after several email exchanges with the new admin for the client I discovered that it was an error on her end and they need a 1004 with a 1007. First time for a request for just the 1007, wouldn't have taken the assignment without the 1004.

Thanks again for all of the input.