2055

[Peggy Wright]

Hi all! I am very excited........I have a new mentor! And I like her to boot!

Question. In past, when we did 2055, we did the report, exterior pictures, no plan. Since her training days, she has done plans, because that is what her mentor did.

I have always done a straight 2055, extra if you want interior photos (cause they are basically wanting a 1004 without price). So, she was really supprised that I didn't do plans on the 2055.

That got me wondering.

How many of you PROVIDE a plan with 2055 as standard practice?
How many of you PROVICE interior shots with a 2055 as standard practice?
How many of you charge more for either or both? My contention is if they want a plan, they should be asking for a 1004. I personally would charge the same for a 2055 with plans as for a 1004.

She and I are talkig about how to jointly promote our business, and I think she is thinking about making some changes. So, what's the rest of the world doing?

 

[Jo Ann Meyer Stratton]

It all depends on the client's supplemental standards. One of my clients only wants a front photo of the subject and no other exhibits for a 2055 exterior. Other clients want front and street photo of subject and photos of comparables--no other exhibits for a 2055 exterior. Another client wants front/street subject photos, no comparable photos but wants assessor's map and location map for 2055 exterior. Then when we get into 2055 interior view--the choices can still be as wide. If I do an interior view, I measure the property, make a detailed sketch for my field notes noting interior walls, doors, plumbing fixtures, etc. then depending on the clients needs and the subject property, they may only get a sketch of exterior walls or they may get a very detailed sketch. Amount of photos, maps and other exhibits vary from client to client for interior views. I determine the fee after the client lets me know which exhibits and how detailed the exhibits they want. There is no one size fits all for the 2055. The URAR is more standardized--one of the reasons lenders call them a "full appraisal".

Section 203.02 - Desktop Underwriter Processed Mortgages, Fannie Mae guidelines effective June 30, 2002 outline what Fannie Mae's required exhibits consists of. Clients and/or lenders use the 2055 form for many different types of loan products without any intention of selling to Fannie Mae--so those in house loans did not need the same exhibits that Fannie Mae requires.

You can access Fannie Mae guidelines at http://www.adfinet.com
You have to register but it is free.

 

[Tom Barclay]

My policy is that when I cross the threshold of the home, I am responsible for a complete interior inspection, including floorplan. I do not shoot interior photos unless there is something unusual or atypical. I charge the same as a full appraisal, as it is the same amount of work and responsibility, only reported in an abreviated manner.

 

[Richard J. Glesser]

I live by the philosophy that the fee is for the value with little variation in price based upon form used for report. I complete the report to the lender's requirements, checking before inspection for any new client as to whether or not they want interior photos. My exterior 2055s go for $250 with the bare essentials - front & street photos, report, title page, copy of license, and lender letter. $275 for interior 2055 with floor plan, rear photo, and dimension page. $300 for 1004. In Northern Michigan, half of the appraisal time is getting to and from inspection so type of report has little effect on price for report. :usa:

 

[Walter Kirk]

I charge the same amount for a 2055 interior as a URAR since I am doing the same amount of work. I charge extra for interior photos in all cases.

 

[Em Tee]

After reading many posts on here suggesting interior phots, I always take interior photos even if I don't plan on using them in the report. Doesn't cost any extra to shoot a couple more photos, covers my butt on the condition of the property, and if the client requests them later, I don't have to go back to the property. B)

 

[Peggy Wright]

I, too, always take interior photos, even if just for reference. I do not include them on a 2055, however, without an additional fee.

 

[Blue1]

A 2055 'interior' is the same as a 1004 to me. I am doing an appraisal and providing an opinion of value. I charge the same amount 'cause it involves the same amount of work and can carry more liability in my opinion. Why would anyone charge less?

BTW YOU, the appraiser, are the one assuming all the liability for your report no matter what 'form' it takes. If there's a problem, don't count on the LO, Realtor, etc. to stand by you in a court of law......It's entirely up to you which 'form' you use to provide your opinion of value. Something to think about........

 

[Rick Neighbors]

I have just about "weaned" all my clients from 2055 "driveby's. If they request a form 2055/Interior Inspection, I get all the data that I need to perform the appraisal. I take interior photos, partly to help my memory, and partly to prove that I was truly in the home. I take rear photos, and I measure the property. I am on site, I am going to measure and shoot all the photos I need. With the CAD's measurments in our area, I only trust my own tape measure. If I measure it, I know it's correct. And with digital cameras, why not shoot all the photos that you want? I mean, what's the cost??? Besides, I have never had a client complain because I gave them too much data.

The 2055 is just the form, you are on site to provide an appraisal report.

Rick

 

[Peggy Wright]

All the information and feedback is great. I, too do as many of you and do interior/exterior photos, etc. In part because I have had to provide that once or twice, and had to go back to the property. Only takes a couple.

I haven't gotten much feedback, though on how many of you structure your pricing. So, if, for example, Rick, they call and ask for the 2055 driveby with interior photos, are you going to charge them the 1004 price? If not, why?