Appraisal With No Inspection By Appraiser?

[Michigan CG]

This whole thing is about fees, nothing more, nothing less.

Hybrids are desktop appraisals. I have read the letter from AMROCK, the guy is a condescending idiot if he thinks appraisers can't do math.

Starting with the inspection fee, trip fees and 1004D inspections typically run $100-$150 so there is the inspection fee.

The report fee of $125 is insulting at best.

If the typical 1004 takes six hours and two of those hours are for the inspection and driving comps then we have four hours remaining. If the typical fee is $400 then 1/3 of six hour typical report is eliminated leaving 2/3 of the typical fee or $268 for a hybrid in a market where fees are typically $400.

 

[ucbruin]

You have no point, which is pretty much usually the case

Than what's this needed for????

This post solely represents my personal opinion which may not reflect the policies of my employer

 

[Michigan CG]

So it is the training we received from a person with no training themselves that makes us so qualified with regard to inspections.

The 1004 form makes one inspect to a different degree than the typical person. Trim and window types are on the form making one check out the floor and door trim and looking at the windows. A mentor will point out things to look at during the training period.

I have a good example. Last week I took my wife to a vacant house that was being flipped. She is an intelligent woman in charge of people's lives on a daily basis. Her initial reaction was "this is nice" and my initial reaction was it was a pig with lipstick. It had new carpet and paint and showed "OK". Then I pointed out the following to her:

-The interior doors and trim were original and the bad paint job had runs of paint on the trim.
-The windows were original (covered with curtains) the flippers installed to hide the 1965 windows that needed to be replaced.
-The kitchen cabinets were original with paint although where the frig and stove went there was no paint; flipper too lazy to pull them out and paint back there.
-The repainted steel siding had a lot of dents in it.
-The shingles on the back of the house were obviously curling.

As an inspector would she describe the property as a C-2? I bet some would; C-4 is mostly more applicable to this property.

 

[Meandering]

This whole thing is about fees, nothing more, nothing less..

It is also about the liability.

No EAs for condition are allowed in a valuation for a regulated banks (IAEG)

The data that the appraiser relies upon, must be verified and from a "credible" source (USPAP).

The source of the condition is coming from an interested party to the transaction, or at a minimum, from the agent of an interested party to the transaction.

Since appraisers are "independent" and are not supposed to have, or be biased, toward the parties to the transaction, just let the homeowners send the appraiser their photos. After all, why would one interested party try to create a bias, if the other interested party would not?????

And all the while, it's only the appraiser with the E&O and licenses on the line, and the minimum 5 years of storage requirements.


,

 

[chad hampton]

I think it only makes sense to completely remove the appraiser from the entire process. I hear fannie is working on a pilot program for that too.

 

[timd354]

Than what's this needed for????

This post solely represents my personal opinion which may not reflect the policies of my employer

It should be obvious why that is in my tag line, it does not take a genius to figure it out...It is to make it very clear that the opinions that I express may not represent official company policy.

Again, what is your point (if you even have one)?

 

[Michigan CG]

Would this also apply to your employees????

For any type of internet forum/shopping/p0rn/etc. ???

While your IT department in your basement might not catch if you are surfing the web for naked women most modern workplaces have in place instant warnings if one of the employees is accessing forbidden sites and that person would be terminated by the end of the business day.

 

[DWiley]

If the typical 1004 takes six hours and two of those hours are for the inspection and driving comps then we have four hours remaining. If the typical fee is $400 then 1/3 of six hour typical report is eliminated leaving 2/3 of the typical fee or $268 for a hybrid in a market where fees are typically $400.

As I said before, the greatest fear appraisers should have with regard to hybrids is the number of other appraisers who will apply the simple math that you did in your example. If one looks at the prevailing appraiser pricing for the 2055 and the 1004D Update, one should quake in fear at what level market fees for "hybrids" might settle at.

 

[timd354]

The 1004 form makes one inspect to a different degree than the typical person. Trim and window types are on the form making one check out the floor and door trim and looking at the windows. A mentor will point out things to look at during the training period.

I have a good example. Last week I took my wife to a vacant house that was being flipped. She is an intelligent woman in charge of people's lives on a daily basis. Her initial reaction was "this is nice" and my initial reaction was it was a pig with lipstick. It had new carpet and paint and showed "OK". Then I pointed out the following to her:

-The interior doors and trim were original and the bad paint job had runs of paint on the trim.
-The windows were original (covered with curtains) the flippers installed to hide the 1965 windows that needed to be replaced.
-The kitchen cabinets were original with paint although where the frig and stove went there was no paint; flipper too lazy to pull them out and paint back there.
-The repainted steel siding had a lot of dents in it.
-The shingles on the back of the house were obviously curling.

As an inspector would she describe the property as a C-2? I bet some would; C-4 is mostly more applicable to this property.

Seriously? Your wife may be highly intelligent but it seems that she is pretty clueless about real estate. Anyone with any sort of real estate background or minimal expertise (including realtors, appraisers, property investors and home inspectors) would have noticed all of those things very quickly.

 

[J Grant]

The 1004 form makes one inspect to a different degree than the typical person. Trim and window types are on the form making one check out the floor and door trim and looking at the windows. A mentor will point out things to look at during the training period.

I have a good example. Last week I took my wife to a vacant house that was being flipped. She is an intelligent woman in charge of people's lives on a daily basis. Her initial reaction was "this is nice" and my initial reaction was it was a pig with lipstick. It had new carpet and paint and showed "OK". Then I pointed out the following to her:

-The interior doors and trim were original and the bad paint job had runs of paint on the trim.
-The windows were original (covered with curtains) the flippers installed to hide the 1965 windows that needed to be replaced.
-The kitchen cabinets were original with paint although where the frig and stove went there was no paint; flipper too lazy to pull them out and paint back there.
-The repainted steel siding had a lot of dents in it.
-The shingles on the back of the house were obviously curling.

As an inspector would she describe the property as a C-2? I bet some would; C-4 is mostly more applicable to this property.

That is why (some ) buyers over pay for flips. I've seen flips like you describe and qaulity flips with components replaced...a rote inspector measuring/taking photos could describe them the same, and photos can not always transmit quality.