Desktop Appraisals-the New Generation Of Appraisals?

[FMV]

Good Afternoon AF-
I received a call and an email from a client/AMC merging with a company that provides Desktop Appraisals. Say they pay anywhere from $50-$100 and take about an hour or so to complete. They said they would send over some samples to review. Said since Fannie/Freddie came out with this in Jan-he has been SLAMMED!
It sounds interesting and I have been reading a lot about all this, just very cautious.. We quit doing Review work-(Field Reviews, Desk Reviews, Etc years ago due to the risk and just too low of fees for the amount of work and I understand this is not Review work, but still just cautious.
Any other appraisers out there perform these type of assignments?? Please let me know? Any type of demands, what type of risks do you feel since we would be making Extraordinary Assumptions up the wazoo!

 

[TRESinc]

lots of appraisers are completing these on a daily basis but i doubt anyone on here would admit to doing so. there is a company called valuenet that exclusively does these types of orders and lots of lenders use them. one of my clients uses them for equity lines exclusively. the fee is south of $150 to the lender.


http://www.valuenet.com/

from their homepage:

ValueNet provides residential real estate lenders and servicers with an alternative to costly, inefficient appraisal techniques. By combining innovative technology, desktop appraisal processes and locally sourced appraisers, ValueNet is able to deliver accurate appraisals and property condition reports faster and at lower cost than traditional solutions. Unlike other desktop appraisal products, ValueNet uses vetted local data sources and certified local appraisers to conduct a thorough assessment of each property – resulting in a fast, accurate, regulatory-compliant valuation. ValueNet is the market leader in alternative valuation products and a division of Accurate Group, a leading appraisal management, title information and compliance company.

 

[bnmappraisal]

Many threads on this topic - should pop in a search
Also read through some of the Clients -GBU section

... Personally, I don't want to do the types you're describing. I don't mind desktop appraisals for certain clients/certain areas I cover,(usually only private client and non FNMA lending - use a GPAR form, etc) but not these "$50-$100/take about an hr to complete" Nope!

That's my business decision, not to do them.. Yours may be different; no hard feelings

 

[Meandering]

There are already discussions on these.

USPAP gives you two reporting options.

Appraisal Report and Restricted Appraisal Report.

And you can't do Restricted Reports with a 3rd party in the middle, as they are limited to only the client's use, so scratch that AMC thing for a Restricted report.

Now you're down to a full Appraisal Report, without seeing the property, or, someone is going to send you photos, you can use to base your condition and quality opinoin on, yet, that significant assistance requires you to note them in the Cert. But of course, the names of those "inspectors" will be provided to you and your E&O will cover any liability if they send you pics of the wrong property.


So,

Still an Appraisal
$50-$100 with increased liability.

Run Forest, Run.

.

 

[Tom Woolford]

The older I get, and the less cooperative the body becomes, this type of work, including desk reviews, is becoming very attractive to me. Add some drive-by's to the mix and I can easily see a perfect "semi-retirement".

 

[ucbruin]

The older I get, and the less cooperative the body becomes, this type of work, including desk reviews, is becoming very attractive to me. Add some drive-by's to the mix and I can easily see a perfect "semi-retirement".

If its that easy, I can complete them after a couple of hits on the vape....

 

[bnmappraisal]

USPAP gives you two reporting options

Now you're down to a full Appraisal Report, without seeing the property

USPAP has nothing saying one must "see" (visit, drive by, etc) a property, so that's not an issue

 

[hastalavista]

lots of appraisers are completing these on a daily basis but i doubt anyone on here would admit to doing so. there is a company called valuenet that exclusively does these types of orders and lots of lenders use them. one of my clients uses them for equity lines exclusively. the fee is south of $150 to the lender.

I agree.
The liability is fully dependent on the SOW.
As to being engaged by an AMC, that would depend if the AMC is acting as the client's agent (as I suspect they are):


However, if you want clarification, you can ask the party (in your OP you said "client/AMC") who is contacting you if they are acting as the "agent" of the client and then confirm the appropriateness of the assignment (restricted report) with your state board if you want an additional comfort level.

 

[Meandering]

USPAP has nothing saying one must "see" (visit, drive by, etc) a property, so that's not an issue

You are correct sir,

Now word search your entire USPAP for significant appraisal assistance. Note the AO says it only applies to appraisers, yet, the Standard makes no such distinction between appraiser or "other people" assistance, so much will depend upon how your state board views the Standard, because the AOs, even though published together with USPAP are not USPAP and are not enforced by State Boards, under FIRREA., so, they then get to question that "misleading" catch all thing, that if you did not view the property from your desk, how did you obtain photos?

Too many gray nooses available to hang in.

.

 

[ucbruin]

I may not considered performing these types of reports if I'm in my 30's/40's and wish to appraise until I drop dead....
But since I'm far older than that, if the fee were right, I would consider doing them until I drop dead....