Drive by appraisals

[Mr Rex]

So let's abolish the slipshod practice of Drive By "inspections" of comparables as well. :new_smile-l:

 

[23Degrees]

Interesting take on this. I agree that you just can't assume the int equals the exterior with no other data to back that up, but I don't believe that the use of EA on interior is prohibited. I've always tried to gather as much data as possible, including the use of data that we all use with our comparables - listings. But we all know Realtors don't always tell the truth and I think it would be safe to say that we all are making extraordinary assumptions that the Realtor is telling the whole truth, nothing but the truth and the listings are a true reflection of the interior.

Yes, interesting. And I see that Mr. Wiley has more posts than you . The listings are published material. Realtor speak aside if a realtor advertised the home as a gem with granite counters and other realtors brought their clients to a dump with cracked old formica he loses a lot of credibility and might face an MLS violation. This gives them far more credibility than anything a borrower might tell you. Trying to expand the legitimacy of a non-compliant EA regarding the subject based on this argument does not work, particularly considering that certification 10 is still there with regard to the subject property.

And for the record, the use of an EA for anything is not prohibited, it just needs to be applied within the proper framework of the form so as to not be considered misleading. A lot of this stuff is auto-reviewed by underwriting and the presence of a check in CB1 vs CB4 would not yield a reason for a followup. So as one poster put it, innocent or guilty as far as intent goes you can still end up in the crosshairs. Some might argue that Fannie or any other intended user would be fully in their rights to go after the appraiser who used the EA without checking CB4 and based on certification 23 you can throw in the borrower as well. There are some E and O companies that might argue that they would be fully in their rights to deny coverage for the act.

The situation can be alleviated however if a double pinky swear is extracted from the borrower and documented in the report which I believe satisfies certification 10.

 

[Pittsburgh Pete]

Unlike Subjective RE Agents and Assessors with vested interests in inflating values (for profit and increased tax revenue) Independent, entirely objective, Competent and Ethical Appraisers are relied upon by their Clients and Consumers to opine the current reality of subject site improvements which "are what they are" for a non-contingent fee.:icon_idea: It is also not a rare event for Buyers to measure homes themselves and/or contract with professionals to obtain independent measurements prior to making an offer (independent of a mortgage financing appraisal). Considering the Number 1 reason for complaints against Appraisers is GLA challenges, IMO, it is essential we actually be the "eyes and ears" our Clients, and Consumers, expect us to be. Measure Twice, Cut Once.

Seriously! Never seen that one. Have had potential purchasers ask for an exterior appraisal to give them a reasonable idea of property value to facilitate their offer to purchase.

Must be a New York thing--around here both agents (the more successful ones that are in it for the long term and not to make a quick buck) and assessors want realistic values--you paint with a very broad, and erroneous, brush. Your implication that only the unethical would do a driveby is ridiculous. It's a scope of work issue. The tunnel vision demonstrated by appraisers that perform only lending appraisals is humorous.

 

[Mike Kennedy]

So let's abolish the slipshod practice of Drive By "inspections" of comparables as well. :new_smile-l:

Let's abolish the slipshod practice of "duhpraisers" failing to execute Due Diligence by parrotting ML listing data and typically outdated Assessment online data absent confirming same. :new_smile-l:

 

[Mr Rex]

Let's abolish the slipshod practice of "duhpraisers" failing to execute Due Diligence by parrotting ML listing data and typically outdated Assessment online data absent confirming same. :new_smile-l:

So, how do you confirm without an interior inspection and measuring for yourself?

 

[DWiley]

IMO, it is essential we actually be the "eyes and ears" our Clients, and typical Consumers, expect us to be.

I agree. And in the case of a lender client asking for an exterior only inspection that client is getting exactly what they expect, and they are well aware of the associated risk.

 

[residentialguy]

So, how do you confirm without an interior inspection and measuring for yourself?

This just in: A man was caught snooping around a home armed with a laser device. He claims to be an appraiser. Police believe this to be the same man in numerous other breaking and entering reports in the neighborhood.

 

[residentialguy]

Yes, interesting. And I see that Mr. Wiley has more posts than you .

But he didn't double pinky swear!

 

[DWiley]

I have just returned from a short visit to Chancery Court where I spent about 40 minutes on the witness stand testifying about an appraisal I did In December that was - are you sitting down - based on an exterior inspection only.


The court seemed to have no problem understanding that if I were allowed access to the home that the assignment results might change.

In this case I was testifying about the Market Rent for the home from 1992 through 2009. So, even if I had been able to inspect the home in 2009, there would have been no way to inspect the home in 1992-2008 (my time machine is at the shop being repaired).

 

[hastalavista]

The court seemed to have no problem understanding that if I were allowed access to the home that the assignment results might change.

I find that shocking!!!
(Shockingly refreshing, that is! )