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203k Appraisal / First One !

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Dorrie Klatt

Thread Starter
Freshman Member
Joined
Mar 7, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Hello Everyone-

I will be doing my first 203K appraisal and am looking for any input and/or advice. I have been digging up everything I can find on the HUD website, but if someone has some real life experience on the steps that are involved with the 203k consultant, things to do and not to do and what exactly to include with the appraisal, I would very, very much appreciate it !!

Happy Holidays....

Dorrie
 

Ted Martin

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Kansas
203Ks are really two appraisals. The first one is the easy one it's an "as - is" appraisal of the subject, warts and all.

The second one is pretty easy too, "subject to completion" based on the plans and specs which the consultant / borrower are to provide to you.
 

Ben Vukicevich SRA

Senior Member
Joined
Feb 9, 2002
Professional Status
Certified General Appraiser
State
New Jersey
Dorrie,

I try not be be at the subject on a 203K when the FHA consultant is there, and the broker and the buyer, etc. They all get in the way.

Just go by yourself like you would on a typical FHA. Write up all your FHA MPS repairs as you typically would do. Then wait for the work proposal from the FHA consultant. Review it carefully, making sure the consultant has covered all your required repairs. Believe me, they miss stuff, especially smoke detectors which are required for FHA 203k's only (got me as to why, but they are and the consultants usually miss them) If you find any MPS repairs lacking on the work proposal, call the lender with your concerns and let them tell the consultant to revise the work proposal to include your additional repairs.

Once you have a work proposal that covers all of your concerns as to FHA MPS, value the subject as you would new construction. Check the subject to completion box and that's it . The consultant will do the inspections so you're off the hook.

Some lenders want "as-is" appraisals. Some don't. So ask ahead of time because it's more $$$ for you if they do.

Ben
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Dorrie,

Take lots of pictures. Try to get all the interior rooms and any special items you think might be noteworthy. Even if your client doesn't require all the photos, they can be a good reminder for you as you look at the consultant's report to make sure all the repair items have been covered.

Good luck.
 

Dorrie Klatt

Thread Starter
Freshman Member
Joined
Mar 7, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Hi Guys.....

As always, thanks for sending out alittle help. I hate to say no to something just because I've never done it before. So besides researching the heck out of it, I know I can always look to this forum for some help and guidance.

Thanks again and happy holidays to all !!

Dorrie
 
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