building sketch/plat

[Renee Borne]

I am reviewing an appraisal of a home that is 2 years old. The appraiser did not put a building sketch in but used the builder's floor plan. The report does not state whether they measured the property. Is this a problem? Also the plat map, APN, etc was not available in pub rec but a easy call to the builder and then the title company handed over the info. Should I mention all this?

Thanks

 

[Socrates]

If the tract was subdivided then there should be an APN. I am a SR. Reviewer for a collateral risk firm - these are some flags. These should be mentioned in your review as a deficiency. The appraiser should have provided that information or commented on why it was not available and perhaps, made the report subject to verification of the APN or legal subdivision. The appraiser should also have noted whether or not they measured. - Many builders’ sales brochures do not extract out cathedral or vaulted ceilings or garages. They include this in their GLA figures. I would say the report is deficient in the areas that you mentioned.

 

[CindyR]

Absolutely these are problems. They should be reported and commented on as to why they are below standards, out of complinace with USPAP, and their effect on the credibiltiy of the appraisal and the quality and reliability of the report.

 

[Vegan702]

I don't think the plat map is required. It may be put in a lot of reports, but I don't think it's required anywhere specifically at least not anywhere I have found.

 

[DWiley]

The report should have indicated whether or not the appraiser measured the home. This is part of disclosing "the extent to which the tangible property is inspected."

If the report otherwise adequately identified the subject property, I would have no problem with the omission of the APN if it were not readily available. I do not consider running down the name of the title company a standard part of the scope of work, and I would not make that effort to find a piece of information that had little or no bearing on the analysis.

DW

 

[Tim Hicks (Texas)]

How did they verify square footage? A two year old home should have been measured. A two year old home should have an APN. A plat is not a requirement, so I would not worry about that.


I have seen:

1. Builders build the same plan differently or change a plan causing a major difference in GLA.

2. A builder provide a plan hand out based on improper GLA.

3. A builder purposely shrink a plan by a few feet hoping nobody will notice.

4. Appraisals based on the wrong builder's plan or hand out. One should alway make sure they built what they told you they were building.

 

[Restrain]

The primary issue is see is whether the subject was properly described. The providing of a square footage, and the inclusion of a builder's plan may be appropriate if you are able to ascertain if the square footage is reasonably correct (tax measurements, MLS sheet, etc). As to the missing APN, etc, these are not big things, but, as previously mentioned, do lead to significant credibility problems.

If you can ascertain that the square footage is not supportable from some reasonable secondary source, then the entire appraisal is questionable.

As an example, my wife has a review on her desk. Tax records show 3100 SF, builder plan cited in MLS states 3600 SF, appraiser provided a sketch showing 4200 SF. ????????? The bottom line is that if she can't get access to the subject to remeasure, there is no way to determine if the property is reasonably valued.

Sometimes, this is how a review ends up.

 

[Tony Blackburn]

Yes, I see it as a problem. If the appraiser used a FNMA form report.

If so, I think there is a good argument that FNMA's guidelines then become a supplemental standard.

As such, FNMA does not require plat maps, but does require a floorplan with exterior dimensions and calculations, which I assume the builder's floorplan does not have.

 

[Restrain]

BTW, it's not unusual for the sketch not to be sent in a review request. Doesn't mean that it wasn't completed. Just makes the job harder.

I would comment that the sketch was not made available for review and truck on.

 

[Mike Boyd]

If it is a complicated floor plan and if there is an APPROVED (by building department) set of plans I will often use the plans, checking each measurement with my scale, to create the sketch. But, you need some experience in reading plans. They can be confusing. As far as APNs are concerned, I would make considerable effort to obtain it on a 2 year old house. There may have been a lot line adjustment with a new APN. You need to know what that adjustment was and how it affects value and marketability. Plat maps might be needed to demonstrate any changes and to verify lot size. Things like this is what make an assignment complex or non complex.