2055 Exterior And Then Borrower Lets Me In?

[Terrel L. Shields]

To me it is always an interior inspection...unless they have an alarm system

 

[bnmappraisal]

Had this happen.....

I say the lender is not paying for a full appraisal. A driveby is 10 pages, full report is 35 pages. I'm here to change the oil for $30, not replace the engine for $30.

I definitely agree with the sentiment, but the OP is saying the borrower saw him and "invited" him in ... would you really just say "Oh no" and drive off? (question not directed exactly at you JTIP, it's more of a rhetorical/hypothetical to anyone answering the way you did in your post - again, not directed at you personally)
Me? Again, I think it's a case by case scenario. But if it's a refi and the "owner of record" matched the borrower (from prelim research) and the "guy" asking me to come in said he was the owner, etc ... I'd, personally, be inclined to enter the property to take a "quick look around."

Again, it'd be on a case by case scenario, but generally I don't see any "harm/foul" being done in such a case.

Playing devil's advocate, I can also see the opposite occurring and that's why I say it's a case by case scenario.

As with much of our profession - "it depends"

 

[Amy Perkins]

If it's a drive-by, there may be a reason for it. News flash "missing appraiser" does drive-by and never comes home. Next time say sorry, I am not authorized to go inside and do a full inspection. However, I will contact the bank and request a full inspection; since you are willing. Never go into a house unless someone knows you will be going inside.

 

[hastalavista]

I'm an appraiser doing an appraisal. The homeowner of the subject I'm appraising asks me what I'm doing; I say, "Gee, I have an order from Bank X to do a drive-by on your house."
The homeowner says, "Good. You want to come in and take a look?"
I say, "Sure; I'll just walk through....."
Or, "No. I'm appraising your house, but I don't want to come in and see it."

And we wonder why we might have a problem with public perception.

 

[Amy Perkins]

In my experience they order a drive-by because it is a foreclosure. Maybe they changed the rules on drive-bys last time I checked, but they used to be required to go inside unless there was a good reason. Which is why you shouldn't put yourself in danger. You are the messenger, don't get shot! You want to be the nice guy and work for free and put yourself in danger? You have one job to be ethical, professional, and not do any favors. Faith in the profession by the public is not being the nice guy; it's being the ethical person you should be. Keep your work consistent (historically) and refrain from bending the truth; if everyone did that we wouldn't have a problem. You can still be politely professional and explain that it's not necessary. When was the last time you even did a drive-by?

 

[JTip]

I definitely agree with the sentiment, but the OP is saying the borrower saw him and "invited" him in ... would you really just say "Oh no" and drive off?

"Come on in and take a look inside".

"As much as I would like to see inside your very nice house, I have only allotted time for an exterior inspection and scheduled another appraisal inspection right after this, so unfortunately I don't have time for a personal tour, but I do appreciate the offer".

 

[DWiley]

It has happened to me.
I disclose that the owner was there at the time of the drive-by; that I entered the home and did a quick walk-through; that I did not do a detailed inspection consistent with a 1004; that the walk-through was only to observe limited areas; I'll confirmed something that I would otherwise have relied upon by some other source (bed/bath count), I'll state I go with what I observed; I state that my condition rating is based on what I observed; etc., etc.

You can always exceed the SOW. What I think you want to do (or, at least what I'd want to do) is make sure I make it clear that my walk-through was not the same as what would be expected had the assignment been ordered as a 1004.

I nominate this for the answer Hall of Fame.

Here is the pre-printed SOW from a 2055



One may always exceed the minimum, and for a 2055 assignment stepping foot inside does NOT automatically trigger the 1004 SOW; it just means that the 2055 SOW has been exceeded. That should, of course, be communicated in the report, so the intended user understands the SOW performed exceeded the minimum.

 

[miktay]

Yes - The answer to whether you should go into the house lies in the pre-printed SOW
(and if the borrower is offering to make you lunch!)...

 

[Tom4value]

I would refuse to go in, even if the owner "invited" me in. My Momma always said not to go into cars or houses of strangers.

Seriously, I would politely and professionally tell the owner "Thank you but the assignment calls for an exterior inspection.". Once you do a full inspection, you "own" the full inspection. You inspect it and take responsibility for inspecting everything you would if it was a full interior appraisal assignment. Soon you will realize, "crap, I just gave them $100 of work for nothing" because try and get a full fee when they told you it was a drive-by.

 

[JTip]

One may always exceed the minimum, and for a 2055 assignment stepping foot inside does NOT automatically trigger the 1004 SOW; it just means that the 2055 SOW has been exceeded.

I can see it now............

Hello, ABC AMC calling. We have an order for a 2055 for $250 but we need an interior inspection, photos of all rooms including basement (finished and unfinished areas) and attic. Please include a room sketch too.

Thank you!!!!