2055 Question.

[jsradcliffe]

Hello,

Do you have to measure the property on a request for a "full 2055 exterior/interior" appraisal? Some say you do and some say you don't. Please clarify.

Thank you.

 

[ginadirocco]

I do.

 

[Mountain Man]

They order an interior/exterior, I measure it. But it really depends on the request, and what the client requires. Most of them I do require the measurements and interior sketch.

On a drive by, they get a copy of the tax card with a disclaimer that I assume the tax card is accurate.

 

[Frank Lostracco]

If your including a sketch with square footage, you should and have to measure it .

 

[jsradcliffe]

But isn't a 2055 a drive by?

 

[Mountain Man]

But isn't a 2055 a drive by?

Not necessarily. It could be a full inspection, or a drive by. There is a little box at the bottom of the form where you check what was done.... Interior or Exterior from public road.

The appraisal form doesn't dictate the type or extent of work; the scope of work, and clients needs, determine how limited or complete the job is.

 

[Phil Rice]

I never measure when I do a 2055. I always measure when I do a URAR ("full appraisal"). If a client ordered a 2055 and asked me to measure (this has never happened), I would gladly comply and include a sketch in the report, and I would charge the same fee as a full appraisal.

The primary reason that I offer a discount on a 2055 is that it saves me the time of measuring and creating a sketch.

 

[jsradcliffe]

I've never been hit on it either. My mentor was hit on it and now he wants me to measure the house on a 2055.

 

[Jo Ann Meyer Stratton]

If the order is for an interior 2055, then YES, measure the building. That is typically the purpose and the reason the client is ordering an interior 2055 versus an exterior only. Either the loan to value ratio is higher with an interior 2055 so more accuracy is required or there is something about that property that just an exterior observation would not be identified. Also if there is a good chance that the property value turns out to be way less than what the home owner hoped it would be, the explanation that the interior view and actual measurements of the buildings would provide good defense. If the client originally orders a exterior view only, and the appraisers discovers something that just doesn't look or sound right, then the appraiser should recommend to the lender that the order be upgraded to an interior 2055 (with measurements).

 

[Mike Garrett RAA]

An appraisal is an appraisal. You are responsible for the data you include in the report. If you feel the public record is adequate you can use it. One of the deficiencies of the 2055 when used as a "drive-by" or exterior only is that the appraiser doesn't verify the measurements and thus the square footage.

It's your call.....just remember you might have to defend your data in front of a State Regulatory Board or possibly in court. One of the key questions usually ask is ..."what would your peers have done?".