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Am I the only one that dosen't do 2055's?

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Oregon Doug

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Joined
Jan 15, 2002
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Oregon
I read a lot of threads in here regarding 2055 drive bys or drive throughs and how many appraisers believe that clients/Realtors/lenders.... are all misusing them, etc....

My company policy for the past few years has been that I don't do 2055's - period! I do full appraisals only. The result is that I have been working seven days a week at full fees and often don't get out of the office until midnight.

Don't tell me that you have to do them to stay in business - I'm not buy'n that. Just a little bit of advise from an old timer - JUST SAY NO!

It really works, Oregon Doug
 

Tim Hicks (Texas)

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Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Yes, you are the only one. I salute you. Actually, I do very few drive-by appraisals (1%). However, I don't mind the 2055 form with interior inspections. do you use the 2075 form? The 2075 is easy money. I am busier than ever too. I am now cranking them out faster than I swore was possible. Oh well, I can sleep when I'm dead.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
You are it Doug. Standing out there alone in the briar patch.

I have actually come to appreciate the 2055 in recent times. I stopped doing 704's about 2 years ago and the 2055 serves that niche.

I don't like not having the Cost Approach but can always do it if I choose or need to. And I think that the 2055 is not as accurate as the 1004.

On one house that I talked about in an earlier post about having 2 orders on the same house, the first was an 1004 and the second was a 2055. Since there were no true comps, I used the weighted adjusted sales price of all comps on both reports. Using the same comps and only the data required in the grids of each, the 2055 came in a little higher than the 1004.

However, given the fact that we charge only about 15% less for a 2055 (either a drive-by or an interior inspection), I think that doing them is a good business decision.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
have done only two this year, don't really like them as I think there trouble and from someof the folks I've spoken with, I don't think they're being done properly.

try to stick with the standards, as my fee is the same; if I have to move out of the office tado anything, it's a typical fee, unless it's a non-typical job.

8)
 

TC

Elite Member
Gold Supporting Member
Joined
Jan 31, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
50% of my business is 2055. However, I charge the same fee for a full URAR and the 2055. So far, no complaints.

TC
 

Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
I do quite a few 2055 interior appraisals, at the same price as a 1004. The last 2055 exterior I did (at $25 less than full price) the LO later called me and said that underwriting was now requiring a 2055 interior so please change it to a 2055 interior.

I did so, for an additional $50.00. It was a house only about a mile away, the LO had the key and all I had to do was walk through the house (I had appraised it twice before), take new pictures (proof positive I had been there as the date stamp is on the photos), change the check box on the form from exterior to interior and put two new reports together. When I delivered the appraisal to the LO she said she would be ordering no more 2055 exterior appraisals from me. She will only order 2055 interiors, no matter what the Freddie Mac Loan Prospector program says she can use. Good for her.

My other primary lender won't even order a 2055. They always order the full URAR or Condo form. I do a lot of condo appraisals and the 2055 is lousy for that purpose.

Just my $.02.

Have a GREAT weekend.
:D
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Yes, perhaps you are. Sure, I'll use the 2055.....if that is what the client is ordering and wanting. Exterior-only's ?...occasionally, and completed with all necessary CYA. If house old and ugly from outside, exterior-only, yes I have suggested the needed interior inspection. Usually I might know of that need just from county data, a prior MLS or knowing the neighborhood and before I ever drive to the house. Some clients accept, others state no need for it, and again its time for using the short, sweet and sufficient CYA in the report. There has been a lot of discussion in Forum recently about what the future holds for the definition of how our services will be engaged, for whom our report is to be done, and the nature of the depth and detail our client may need to make their decisions. As of Jan. 1st my addenda comments will all clearly be stating that the report completed is the report ordered and the report defined as necessary by the investor engaging my client for whom I did the work. You will know what they want...you will complete the data analysis they need and report that ethically, honestly and as completely as the request demands, and then you wrap it up by telling them that what you sent them is exactly what they asked for. --- In typical, homogeneous and active market areas where every third house is the same our client could care less about Cost Approach....and I will have to consider sharing the same sentiment if that is not something they need to make their lending decision. If the subject is not a rental property, and/or there are perhaps so few rentals in the same neighborhood then the client may not want us to grind out an Income Approach....and I will have to consider sharing the same sentiment if that is not something they need to make their lending decision. And, I would bet 99.3% of all 1004's are completed with no Income Approach being performed. Folks, let's be honest about that now. The 2055 is extremely common and extremely popular and the clients have all their master databases and financial crunching formulas and their program suggests what report they should secure to move their decision process to the next step. We can suggest otherwise if we feel it is warranted. If they accept our advise then fine for all parties. Our last option is to certainly decline the order because it is to be on a 2055.....and they will find another willing to do it. So far, I have never declined a 2055....and....knock on wood.....no 2055 has ever come back to haunt me.
 

Jim Bartley

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
I read a lot of threads in here regarding 2055 drive bys or drive throughs and how many appraisers believe that clients/Realtors/lenders.... are all misusing them, etc....

My company policy for the past few years has been that I don't do 2055's - period! I do full appraisals only. The result is that I have been working seven days a week at full fees and often don't get out of the office until midnight.

Don't tell me that you have to do them to stay in business - I'm not buy'n that. Just a little bit of advise from an old timer - JUST SAY NO!

It really works, Oregon Doug

This topic has been beat to death. They serve a need, they are USPAP compliant. What's the problem?
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
Just looked at Quickbooks. 1 more report out the door and an all time record month for Home & Cabin Appraisal. Let’s hear it for the older good guys!!

I did a check from 1 Jan 2001 to date and here is what I found:

URAR 78.85%
2055 Int 07.97%
2055 Ext 02.12%
All Others 11.06%


So 2055's are about 10% of my business.
 
K

Kevin Shannon

Guest
Kinda confused on this one, how can you be in the appraisal business if you don't offer all the products that the clients want?
Sorta like a plumber saying "I don't fix leaky sinks, just leaky toilets"
or a Doctor saying "I don't do right knees, only left ones"

No wonder why lenders are looking for alternative products like AVMS and BPOS.

I tell you, we're are own worst enemies.

Kevin Shannon
 
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