Crappy Hybrid Inspection

[Andee]

Have a review on a property that is over 4,000 sf, for a property valued at almost $3Mil. First dumb question, WHICH LENDER IS DUMB ENOUGH TO ALLOW THIS TO BE A HYBRID??? Anyway, the inspection is crap, I have an entire list of stuff that is a discrepancy and the appraiser didn't bother to look at the pictures or change anything from what the inspector said. So we start with they say slab foundation, this area only builds pier and beam, even today, only pier and beam, plus when you see the damn air vent on the floor, that should tell you something. Next, the drop stair attic that they list sure does look like a regular old door that you walk through with no stairs to climb. This company/person is also really good at calling aluminum gutters and downspouts "Galvanized Steel", I laugh almost every time I see this. They said there are 2 porches in the inspection and the appraiser writes up no porch with a screened in patio. I'm seeing an outdoor fireplace and an attached grill, yet this is the second one today from the same company that has chosen not to make an adjustment for an attached grill...is this becoming the new norm and I haven't heard anything about it? All of the bathrooms and the kitchen have been completely updated/remodeled, the only thing in the bathrooms that stayed were the tubs and toilets in the secondary bathrooms, but they said that only the floors and some of the counters were redone in the bathrooms and only the floors in the kitchen in the last 15 years, the last MLS listing was in 2015 and the interior has all changed since then. And the one that I think is the funniest, that the laundry room has no issues, yet it is only drywall, no protective coating over the drywall...ya know, like paint...so if the hose from the washer bursts and sprays everything, I guess nothing is going to happen and it will just magically go down the pipes. Now the actual square footage, they never mention anything about the square footage in the report being to ANSI standards, which this is not, they don't even mention what system is used or anything they used to determine the square footage. So I'm looking at the pictures, which are about the size of a postage stamp and go back to a previous listing on the house to see better pictures for these rooms, to find that they took 2 closets and said that because they were lower than 7 feet, they are no longer square footage, yet they are taller than 5 feet, which should have counted because more than half...as in the entire rest of the room/space...is over 7 feet and last I checked, it said that more than half the room has to be above 7 feet but no lower than 5 feet for it to still be counted as square footage. Am I just missing something here and why would anyone rely on these people that have no clue about anything to measure a house and rely on that report for something with this type of a price tag on it and not question it? Are these hybrids not reporting ANSI standards for measuring, or are they not required to?

 

[Tom D]

yikes, you did more work than the appraiser. now you know why most of use don't do them. since the review appraiser is more liable than the original appraiser, the lender is having a better appraisal done by you for how much? i don't think review appraisers get any leeway from the state if their review appraisal has mistakes on it from the original. my attitude would always be on a review, taken from an existential book, 'run rabbit run'.

 

[J Grant]

Who cares if the inspector calls aluminum galvanized steel -(or other minor discrepancies ) Focus on the important things. Perhaps the slab vs pier foundation wrong is a major thing in that market . Is it a review where you drive by the property? Or drive by it voluntarily - can observe subject to see if it aligns with what is reported in the appraisal

It is odd a lender approved a hybrid at that price point but it was their decision. Either the information the appraiser had was reliable enough to use or it was not. The onus is on the appraiser, not the third party who did the inspection - I understand a third party inspector has no liability and is not named in the report.

The onus, fair or not fair , is on the appraiser to determine if the information from the third party inspector was reliable. If you feel this appraiser based their opinion on a third party inspection that had major errors affecting results, then that becomes part of the review. If it is a review that asks for an opinion of value if you disagree with the OA value, then YOU will be responsible for getting enough reliable information about the subject to value it. ( Try asking client for a prior appraisal which had an interior inspection and sketch done by the appraiser.)

The fact that a third party inspection was used esp one with possible material errors affecting the value adds to the complexity of a review assignment.

 

[Carnivore]

Who cares if the inspector calls aluminum galvanized steel -(or other minor discrepancies ) Focus on the important things. Perhaps the slab vs pier foundation wrong is a major thing in that market . Is it a review where you drive by the property? Orr you can drive by it voluntarily - then you can observe subject to see if it aligns with what is reported in the appraisal

It is odd a lender approved a hybrid at that price point but it was their decision. Either the information the appraiser had was reliable enough to use or it was not. The onus is on the appraiser, not the third party who did the inspection - I understand a third party inspector has no liability and is not named in the report.

The onus, fair or not fair , is on the appraiser to determine if the information from the third party inspector was reliable. If you feel this appraiser based their opinion on a third party inspection that had major errors affecting results, then that becomes part of the review. If it is a review that asks for an opinion of value if you disagree with the OA value, then YOU will be responsible for getting enough reliable information about the subject to value it. ( Try asking client for a prior appraisal which had an interior inspection and sketch done by the appraiser.)

The fact that a third party inspection was used esp one with possible material errors affecting the value adds to the complexity of a review assignment.

I have read recently there is a real problem retaining people to complete the On-Site inspections foor the Hybrid type assignments. I signed up for E-mail list of companies trying to hire 'Home Inspectors'. They are not looking for ACTUAL Licensed Home Inspectors(to expensive).

No, they want Joe Snuffy to do them. you know why? They only pay Chump Change. In my state there is no requirement to be licensed as a Home Inspector when it comes to just measuring providing a sketch with interior walls etc and taking photos. NONE! The So Called Inspectors are not allowed to make any kind of general comment about condition. That's a Grey area. There supposed to describe the features and things like Wood Lp Siding, etc Since they are being paid peanuts , guess what? They are often not doing there job. In todays labor market, high cost of Gas etc It's getting tougher to get anyone to take the job.
Recently I received emails from two AMC's Topic: They were chastising Appraisers for completing desktops using sketches without Interior Walls!!! Hmmmm. Why is the AMC sending out Desktop assignments with incomplete sketches to begin with? I think the answer is the AMC's are not checking the assignment data. BUT, you would think the Appraiser should be kicking back those assignments that are deficient of proper Sketches. Apparently they are not! I think that is a SOW violation(USPAP). Unless of course they already have a some prior listing sketch with walls.

Oh, well. We are really facing in the near term a big Real Estate Market adjustment Downward. Maybe these Desktops will dry up due to uncertainty,







l

 

[Terrel L. Shields]

Are these hybrids not reporting ANSI standards for measuring, or are they not required to?

I don't believe that ANSI is required on hybrids. It is not required on desktops. And a "hybrid" is a desktop supplemented with a property report.

 

[bnmappraisal]

Have a review on a property that is over 4,000 sf, for a property valued at almost $3Mil. First dumb question, WHICH LENDER IS DUMB ENOUGH TO ALLOW THIS TO BE A HYBRID???

Many, many reasons come to mind regarding this, one being maybe the borrower is only trying to borrower say $500,000 - you don't need a full blown 1004 to tell me the property is worth more than $500,000

 

[bnmappraisal]

And the one that I think is the funniest, that the laundry room has no issues, yet it is only drywall, no protective coating over the drywall...ya know, like paint...so if the hose from the washer bursts and sprays everything, I guess nothing is going to happen and it will just magically go down the pipes.

I think you're looking WAY too into this "issue"
And what would the CTC be??? Maybe $100?? $200??? on a multi million $$$$ property that's not even worth mentioning

 

[bnmappraisal]

Side note: @Andee please use the enter key once in a while. It would make your post(s) so much easier to read

 

[J Grant]

Many, many reasons come to mind regarding this, one being maybe the borrower is only trying to borrower say $500,000 - you don't need a full blown 1004 to tell me the property is worth more than $500,000

They do not need a full blown apraisal to see if a high value house is worth more than 500k- but 500k is still a substantial amount of money. If the borrower defaults on 500k they come after the appraisal along with rest of the file. If an investor is buying the paper for 500k they want to know if the appraisal was solid .

 

[bnmappraisal]

I'm seeing an outdoor fireplace and an attached grill, yet this is the second one today from the same company that has chosen not to make an adjustment for an attached grill...is this becoming the new norm and I haven't heard anything about it?

Maybe they don't have enough data to justify an adjustment. I know, in my market, outdoor kitchens/attached grills are usually just considered qualitatively in my final reconciliation

All of the bathrooms and the kitchen have been completely updated/remodeled, the only thing in the bathrooms that stayed were the tubs and toilets in the secondary bathrooms, but they said that only the floors and some of the counters were redone in the bathrooms and only the floors in the kitchen in the last 15 years, the last MLS listing was in 2015 and the interior has all changed since then.

Ok, this one seems like something you may want to question the original appraiser about. That could have an affect on value

Now the actual square footage, they never mention anything about the square footage in the report being to ANSI standards, which this is not, they don't even mention what system is used or anything they used to determine the square footage. So I'm looking at the pictures, which are about the size of a postage stamp and go back to a previous listing on the house to see better pictures for these rooms, to find that they took 2 closets and said that because they were lower than 7 feet, they are no longer square footage, yet they are taller than 5 feet, which should have counted because more than half...as in the entire rest of the room/space...is over 7 feet and last I checked, it said that more than half the room has to be above 7 feet but no lower than 5 feet for it to still be counted as square footage.

This is also something that may have an affect on value and may be worth asking about