Crappy Hybrid Inspection

[Sadie]

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

I think it is not the amount borrowed but the property value that is the determination for the need for a full. Wells got into trouble asking borrowers to estimate value at under $1 mil so they could avoid a full 1004.

 

[George Hatch]

Who is being reviewed, the appraiser or the property "inspector"

Swap the variable. What if the data source in question was the MLS or public records, and not an inspection report? What if it's a rent roll that the appraiser can easily see is a lie? Appraisal standards don't apply to non-appraisal services.

The appraiser isn't responsible for the accuracy of the data and isn't expected to know about unapparent or hidden errors of fact. But when the problems in the data are obvious because the pics don't line up with the descriptions it becomes negligent to proceed solely on the basis of "it's in writing so therefore it's not my problem".

IRL we sometimes do run into obvious contradictions in our data, and the fix for that is relatively simple., If it's something minor we can just note it, correct it using our other references or observations, and move on. If it's something major and we can't resolve it then we can either bump the SOW to go out and clarify the facts ourselves or kick it back to the client to resolve.

There is no rock vs. hard place scenario for the appraiser here. If we make an assumption in good faith about info that turns out to be incorrect that's an unavoidable error. If we're acting in bad faith and/or engaging in gross negligence WRT our own actions then that is avoidable.

 

[Sadie]

Respectfully, I disagree, but I did not see the appraisal of course - an unpainted laundry room imo does not need a cost to cure. A built in summer kitchen has value but a grill ? In a million dollar home?

A lot of small meaningless things which never mattered in the first pace still does not create a series of errors that would affect value -

deleted

 

[Sadie]

The bold parts are actual screenshots of what the appraiser wrote in the report. Before I wrote this, way tooooo early this morning, I only compared the inspection report and photos to the improvements section of the report. I had not finished reading the report, it was late/early, and I was too tired to finish reading.

Basically, the appraiser says in one section of the comments, or it's implied, that the sketch is theirs, which in the report says "The appraiser's sketch of the subject property...having performed field measurements.", this is in the comments section on page 3.

Later in the report, the appraiser says "...the visual interior and exterior inspection was NOT completed by the appraiser...", which is on the addendum.

The "appraiser's sketch verbiage is imbedded into a 1004. It is a disclaimer regarding the accuracy of the sketch. If the appraiser is using it then technically it is the appraiser's sketch, albeit from a source other than the appraiser. The same can be said about using plans in a new construction appraisal.

 

[Sadie]

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?

An grill is not that big a deal in my market. A full blown outdoor living area is more of a thing that MIGHT require an adjustment. Do the comparables have similar exterior areas? Eash market is different and expectations for amenities is different. Is the grill actually built in or is there just a place for it and an exterior gas hook up? 2 different things.

The bigger concerns to me is not the content of the finish work, its missing the foundation type and missing the condition of the property. Re the attic. Homes can have a door and a drop stair access. You weren't there. Re: the 5' rule. I have always excluded under 5" as I think most of us do on the second floor. Because you don't have the original engagement letter you don't know what constraints the OA was under. Yes it appears to be a crappy inspection and appraisal.

ANSI doesn't apply to hybrids.

 

[djd09]

ANSI doesn't apply to hybrids.

or waivers, or evaluations, or county records, or realtors, or buyers and sellers, or a judge, so we are the only ones required to be dum dums measuring to an inch or so

 

[J Grant]

Swap the variable. What if the data source in question was the MLS or public records, and not an inspection report? What if it's a rent roll that the appraiser can easily see is a lie? Appraisal standards don't apply to non-appraisal services.

The appraiser isn't responsible for the accuracy of the data and isn't expected to know about unapparent or hidden errors of fact. But when the problems in the data are obvious because the pics don't line up with the descriptions it becomes negligent to proceed solely on the basis of "it's in writing so therefore it's not my problem".

IRL we sometimes do run into obvious contradictions in our data, and the fix for that is relatively simple., If it's something minor we can just note it, correct it using our other references or observations, and move on. If it's something major and we can't resolve it then we can either bump the SOW to go out and clarify the facts ourselves or kick it back to the client to resolve.

There is no rock vs. hard place scenario for the appraiser here. If we make an assumption in good faith about info that turns out to be incorrect that's an unavoidable error. If we're acting in bad faith and/or engaging in gross negligence WRT our own actions then that is avoidable.

Agree.
As a reviewer, we can not speculate about whether the appraiser acted in good faith or should have known the inspection or other data was not reliable.

The role of reviewer addresses the appraisal as well as the data sources relied on or used and if there are discrepancies between them that affected values and conclusions. Emotional rants from a reviewer are not a good sign , because we are supposed to be unbiased in a review. We should not try to use a review to show clients that X type of appraisal products are garbage .

 

[Sadie]

or waivers, or evaluations, or county records, or realtors, or buyers and sellers, or a judge, so we are the only ones required to be dum dums measuring to an inch or so

No dum dums, super accurate measurers!

 

[Sadie]

Agree.
As a reviewer, we can not speculate about whether the appraiser acted in good faith or should have known the inspection or other data was not reliable.

The role of reviewer addresses the appraisal as well as the data sources relied on or used and if there are discrepancies between them that affected values and conclusions. Emotional rants from a reviewer are not a good sign , because we are supposed to be unbiased in a review. We should not try to use a review to show clients that X type of appraisal products are garbage .

I think the reviewer pointing out the discrepancies should tell the client the end results are garbage, not just the products but the inspector and appraiser.

 

[djd09]

No dum dums, super accurate measurers!

then you should measure to the millimeter and still nobody cares