Another type of value estimate...!?!?!?

[Farm Gal]

was asked to sign a "Property Qualification Certification Form"

some gobble-de-gook at the top but the problem part runs:

they posit the following definition:

"Dwelling" is defined as the basic residence structure (...) and all other attached components such as: Garages, porches and decks, but excluding the Site Land and all other Improvements, such as, detached garages/carports, detached storage buildings, pools wells, septic systems, driveways, landscaping etc are considered to be the "Site".

Then run on to this equation:
Dwelling value: As per the Uniform Residential Appraisal (Form 1004) the contributory value of the "Dwelling" portion of the subject property is determined to be:

Overall Value Estimate: $zzz,000
Less contributory Value of Land $
Less All other Improvements Value $............

Contributory Value of Dwelling: ____$___________

.................................................................................
Now on first glance this seems like a simple reworking of the cost approach, probabaly an attempt to insure that us evil appraisers don't sneak in any wells or ponds or ? into what they are willing to loan on....

But then: the depreciated dwelling value cost approach worked out in the appraisal probably won't exactly equal the 'contributory' as arrived at by this approach.

So then you either are (or are not) attributing a specific value to the improvements as a PART of the value equation which may not be accurate!?!?

or am I like the catapillar who walked jus fine til he thunk about it :?

I am inclined to go ahead and fill it out because the loan can't close and its scheduled and blah blah blah... and everyone involved is whining 8O

by adding *Contributory Value of Dwelling
*By extraction using Lender Supplied Definitions and Formula

Is this sufficient to cover my rear 8O :? :?: :!:

Heeeelllppp?!!!

 

[airphoto]

LeeAnn,

Is this something you'd already appraised? If not .. run! .. run like the wind!!

Otherwise, why would they need you to do this? If there's already an appraisal, they can fill it in themselves ..

 

[larryhaskell]

Lee Ann:

I don't understand why they want the value broken down as you describe because when they encumber the property and then foreclose (if that were the case) on the property they will own it all. Just when you think you've heard it all. Never ceases to amaze me.

 

[Ben Vukicevich SRA]

Lee Ann,

Looks like the lender has figured out a way to have you do the work of the homeowner's insurance company. The insurers would call the lender and have them fax the URAR Cost Approach section over to them (hey why not-the appraiser did all the necessary work for them to give a quote) but I guess the quality of their personnel has gone down 8O and now they need you to fill out the form for them??????? Got me. It just seems to be exactly what they need to "do" the homeowners insurance premium quote.

I guess they're too lazy to go out and measure the home..now do you assume any liability with the homeowner's company if they rely on your "figuring" by filling out the form. Got me.

Ben

 

[Pamela Crowley (Florida)]

Is this possibly some add-on for some insurance company?

 

[Farm Gal]

:lol: :lol: :lol:

Thanks guys and gals!!! The usual gang of suspects has come up with my exact line of concerns... Didn't want to predudice the responses...

Unfortunately this is something we have already appraised... too late to run :roll: Already had three or four go rounds with UW due to the fact it is on 40 acres and we ASKED before going out are you SURE you can lend on this?!?!?!

other list of silly questions: are you sure they are not getting ag benefits from this site? (No) Did you COUNT the live stock? (observation was two dogs and one horse seen, did not check the bushes for strays...)

so this latest is not a huge surprise... but
ladles and gents, would you sign or not to sign as amended...?!?!?

Or at this point am I justified to tell the lender to go whistle(?) not exactly a favored client BTW :x

 

[Judy Whitehead (Florida)]

I guess one of my reactions would be - the "house" couldn't function or be of value without some of the site improvements, such as the "well" and the "septic". I have had a lender ask me to separate contributory value for barns, etc., or another residence on the site, and in that case I usually put in separate in the grid what the contributory value is (like in the "other" category, or change the "basement" cateogry - hardly ever used in Florida). The functionality and the market value of the residence depends on some of the other things on the site, including paving, landscaping, etc. At least that is how most residences are appraised. I think I would try to find out "why" they need this breakdown of costs so that there is no misunderstanding what it is to be used for.

 

[Farm Gal]

Yup, at this point they can go whistle....

Still waiting on a reasonable explanation for why they need this :evil:

 

[Frederick R. Ruffell]

Without a complete and full explanation as to why the need this, in writing on company letterhead signed by LO, I would not sign this. If the cost approach was completed in the original assignment then all of their questions should be answered there.
If the insist then charge a full fee and do an appraisal based only on the cost approach using land value derived by extraction not abstraction. Disclose that it is a limited appraisal at the request of the client and that a full appraisal has already been done. If they do not like the fee let them go whistle, unless their are the very good client. I think this is a reasonable solution to both sides problems.

 

[Terrel L. Shields]

Not so long ago, I appraised 30 ac + very nice house where the UW went bonkers over a shed. AG! AG! AG! Oh, gimme a break. Had to photo the d--- thing to show only DOG kennels were in it; AND, to call it something besides "Shed" or "Barn"...ok, try kennels. idiots. No wonder I hate secondary market.