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Canned Statement In Every Appraisal For Recommended Inspections?

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Gulf Coast

Sophomore Member
Joined
Feb 4, 2013
Professional Status
Appraiser Trainee
State
Florida
As a result of various AMC requests over the past few years asking if I would recommend an inspection for various items (yesterday they asked if a mold and mildew inspection should be done because the basement photo appeared to show possible mildew on the wall....it wasn't mildew by the way), should we just put a statement in every appraisal saying something like, "Appraiser recommends client has a full home inspection done to uncover possible seen or unseen issues appraiser is not qualified to uncover such as, but not limited to, structural issues, mold and mildew, lead based paint, contamination, etc." The wording is not perfect but you get the idea. Any thoughts?
 

chad hampton

Senior Member
Joined
Nov 10, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
I've added something like that in many reports. Not all of them, but in homes when I feel one would be beneficial to the client.
 

GA Benny

Junior Member
Joined
Oct 19, 2007
Professional Status
Certified Residential Appraiser
State
Georgia
You have limiting condition #5 (if you are using a FNMA form) that helps cover you on some of that. I don't see any problem with a comment recommending a home inspection but I would be sure to specify "unobservable or hidden conditions" because you would be required to report on any, and I like HUD's term, "readily observable" conditions as part of your required scope of work.

I personally think we look better as a profession if we educate ourselves on what to look for rather than fill our reports with a bunch of statements that limit the scope of our inspection. For example, you may not need to be a pest control expert to learn to recognize termite damage, mud tunnels or major infestations. You don't need to be a mold expert to say that the crawl space is damp and there is a black mold-like substance on the walls. etc.
 

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
Did you explain what it was (appeared to be mold-photo) or not ?
Was it a Refi or Purchase ?
 

miktay

Senior Member
Joined
Jul 3, 2007
Professional Status
Certified Residential Appraiser
State
Texas
I personally think we look better as a profession if we educate ourselves on what to look for rather than fill our reports with a bunch of statements that limit the scope of our inspection.

We absolutely need to educate ourselves on what to look for - in the scope of an appraisal inspection. But their is a line in between the responsibility of an appraisal inspection and a home inspection. That line needs to be understood by the reader of our report.
 

GA Benny

Junior Member
Joined
Oct 19, 2007
Professional Status
Certified Residential Appraiser
State
Georgia
We absolutely need to educate ourselves on what to look for - in the scope of an appraisal inspection. But their is a line in between the responsibility of an appraisal inspection and a home inspection. That line needs to be understood by the reader of our report.

And that line, I think, is in the terminology. As I said, I like HUD's term "readily observable". I agree that appraiser's are not home inspectors and the level of appraisal inspection is not as invasive as a home inspection. But I recommend appraisers take a home inspection course, just for educational purposes, particularly if it will count towards your CE. Maybe learn more about the construction process or recognizing environmental hazards. The more we can learn to recognize, the less we need to disclose that we don't know what we are doing. Just my opinion.
 

Gulf Coast

Sophomore Member
Joined
Feb 4, 2013
Professional Status
Appraiser Trainee
State
Florida
Did you explain what it was (appeared to be mold-photo) or not ?
Was it a Refi or Purchase ?
No, I just repeat verbatim what they said in their request and then say I'm not an expert yada yada and say an inspection by a qualified expert is recommended if client is concerned. That's why I asked about putting a canned comment in every appraisal because these requests get redundant. It must get redundant to the AMC's also because I always say the same thing. I always put it in the hands of the lender to decide what they want to do. It was a purchase.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
As a result of various AMC requests over the past few years asking if I would recommend an inspection for various items (yesterday they asked if a mold and mildew inspection should be done because the basement photo appeared to show possible mildew on the wall....it wasn't mildew by the way), should we just put a statement in every appraisal saying something like, "Appraiser recommends client has a full home inspection done to uncover possible seen or unseen issues appraiser is not qualified to uncover such as, but not limited to, structural issues, mold and mildew, lead based paint, contamination, etc." The wording is not perfect but you get the idea. Any thoughts?

What was it?
 

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
No, I just repeat verbatim what they said in their request and then say I'm not an expert yada yada and say an inspection by a qualified expert is recommended if client is concerned. That's why I asked about putting a canned comment in every appraisal because these requests get redundant. It must get redundant to the AMC's also because I always say the same thing. I always put it in the hands of the lender to decide what they want to do. It was a purchase.

Design a statement for all reports that you feel addresses the issue; what is your State Law on AMC's in regards their allowed review of the report ?
 
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