Appraisal With No Inspection By Appraiser?

[Mr Rex]

Imo nearly every experienced appraiser would notice most (or all ) of this,, why assume otherwise?

Whatever the level of finish, upgrades or shortcuts done in a flip become basis of evaluation of the quality of the subject, then later compared to other homes in the SC, reflected in cost approach..if a SC price was buyer well informed did they over pay etc.

That is the purpose of the inspection by an appraiser: to put things such as not properly installed siding into a value perspective (unless it is a health/safety issue )

Because an FHA appraiser had done an inspection for this USDA loan and found nothing wrong with this C2 property.

 

[J Grant]

A home inspector or mold inspector is not hired to do tha

Because an FHA appraiser had done an inspection for this USDA loan and found nothing wrong with this C2 property.

Were any of the things you noted safety/health issues or fail an Min property standards Either they were FHA repair issues or not....if they were then yes the FHA appraisal appraiser should have noted them, if they were just low level construction quality then not. We are not electrical engineer inspectors even for FHA, if he tried outlets and they worked...

That is why FHA itself says the appraisal inspection is not a home inspection, and recommends buyers get their own home inspection. (or mold or radon or whatever the want )

 

[chad hampton]

There's a wide margin between what one of these new photo takers is able to do at a property and what a home inspector does. An appraiser falls in the middle. Even as an appraiser a civil engineer, I would NEVER buy a home w/o obtaining a home inspection.

An FHA appraiser doesn't do an inspection. I don't care what the FHA tells it's borrowers.

 

[J Grant]

The purpose of a home inspector for a buyer ( find defects/repairs) is different than the purpose of an appraisal inspection for an appraisal (evaluate a property)

Each is done to fulfill its own purpose .

Though an appraiser will note repairs and defects, the reasons for doing so is different than reasons a home inspector would,.

 

[TJSum]

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.

In this market the pricing barely reaches three figures, if that.

 

[TJSum]

I think real estate agents would have far more problems wearing the "unbiased hat" then most appraisers do. Would they really be truly unbiased if the agents on the deal are from their office, agents they know, agents they have done deals with in the past, etc. They would fear making too many waves with property inspections to built up potential blow back when they put back on their "sales hats". Besides, most BPOs are done by those who can't sell, or lower level workers for said agent, most likely the same people (runners) would end up doing the property inspections.

 

[J Grant]

I think most RE agents would try to be unbiased, but their natural inclination is to fudge everything .......a house backing a freeway is not a noise issue, it is "close to transportation" I doubt a class how take notes for an appraisal inspection will change that - and a number of them have never measured a property.

In addition, many RE agents are only familiar/experienced with a limited type of property.. They tend to have a limited "farm area " of a certain type and price range they list and sell ; sometimes as small as their own subdivision. Many of them have never been in any other kind of property than the ones they typically handle.

 

[TJSum]

There's a wide margin between what one of these new photo takers is able to do at a property and what a home inspector does. An appraiser falls in the middle. Even as an appraiser a civil engineer, I would NEVER buy a home w/o obtaining a home inspection.

An FHA appraiser doesn't do an inspection. I don't care what the FHA tells it's borrowers.

Just as big a question, whoever ends up taking these photos for the hybrids, what law will force them to be as unbiased as appraisers are to be? Of course they can save money and pay next to nothing for Joe six pack to go take photos. But to be assured the person taking the photos is as unbiased as appraisers would require them to be licensed as well, with similar rules and regulations, which hopefully would result in the new set of photo takers charging about the same appraisers already charge. The bottom line, if it is all about money, most likely the person taking the photos will not have the same unbiased nature expected of the task, because it would be the only way the money savings would result as much as hoped.

 

[Eli]

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.

As I have said before time and time again relative to pricing and market power on price, AMC’s and lenders have their own worries relative to antitrust law.

As George Hatch says, not doing what you say you do or doing what you say on truth in lending disclosures.

You know the narrative: Do what you say and say what you do.

As Marion has noted, independent contractor vs employee laws are applicable. State laws too.

 

[Evincere]

As I understand it, that is exactly what was done/is being done in at least one portion of Fannie's tests. The whole point of testing is to see what variations produce what kind of results. Anyone seriously considering a move to "hybrids" would, unless they were complete idiots, test the results of having a group of appraisers do the inspections while another group did the analysis.


."

It only took hundreds of posts and endless quibbling back and forth about Fannie and the background of inspectors - for you to provide the above information regarding appraisers doing part of the inspections for the pilot?!!!