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Drive-by for a Purchase of Rental Prop.

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VolcanoLvr

Thread Starter
Senior Member
Joined
Oct 30, 2003
Professional Status
Certified Residential Appraiser
State
Washington
Would appreciate replies w/in the next 2 hrs if possible:

Lender thru the AMC has ordered a Drive-by (New 2055) for a dwelling that's to be a NOO rental/investment.

I have asked that this be converted to an interior insp & given reasons why.....lender says No, just do a drive-by.

Would you accept this assignment?

(Note...........I know many of you don't do 2055 D-B's..........would really prefer hearing from appraisers who do them in their regular course of business.)
 

Narkissos

Junior Member
Joined
Jan 9, 2006
Professional Status
Certified Residential Appraiser
State
Michigan
Damn, if that is not a coincidence. I just turned one down not even 5 minutes ago. The exact same situation, lender ordered a drive by on a rental property that is under contract to sell. Per the lender the buyer will be occupying the property. I passed, not a big fan of the 2055 as it is, especially for a purchase.
 

Joe Milla

Junior Member
Joined
Feb 13, 2007
Professional Status
Certified Residential Appraiser
State
Massachusetts
don't mind doing 2055 (even though its more work) except if it is a sale. If you take assignment. speak to Broker and get copy of P&S. good luck
 

VolcanoLvr

Thread Starter
Senior Member
Joined
Oct 30, 2003
Professional Status
Certified Residential Appraiser
State
Washington
I have the P&S....also home was listed, so there are some interior photos there.

Biggest concern for me is the lender REALLY doesn't know what they are lending on unless we do an interior inspection and walk totally around the prop.

Since the MLS photos were taken there could now be a grow operation or meth lab there...and no one will know! Maybe that's why no int. insp. was ordered!

I have put a call in to the lender directly, asking for a manager....even though order came in 'through the back door.'
 

Harry Hemingway

Freshman Member
Joined
Sep 28, 2006
Professional Status
Certified General Appraiser
State
Colorado
I dont have a problem with drive bys. Just make sure to use extraordinary assumptions for things you dont know like the conditon or any other legal or physical things and hypotheticals for things which are contrary to what exists like unfinished construction.
 

Narkissos

Junior Member
Joined
Jan 9, 2006
Professional Status
Certified Residential Appraiser
State
Michigan
Harry please read the preprinted cert on the new 2055 form. It specifically does not allow for the addition of EA's. So that does not do much good
 

Narkissos

Junior Member
Joined
Jan 9, 2006
Professional Status
Certified Residential Appraiser
State
Michigan
I have the P&S....also home was listed, so there are some interior photos there.

Biggest concern for me is the lender REALLY doesn't know what they are lending on unless we do an interior inspection and walk totally around the prop

Dave, that was my exact argument. I turned the order down, the property has been listed for over 800 days. The MLS photos are from the date of the original listing. The photos show only specific areas and do not give a clear enough picture. I think you already know what to do. If you feel uncomfortable there is a reason for it. I learned long ago to listen to that annoying little voice I hear in situations like that.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
To answer your question, yes, you can do it. A well defined Scope of Work with help. Contrary to other opinions I think you can include an extraordinary assumption and would not do any exterior only appraisal without one. Perhaps the question should be...."do I really want to do this?".
 

Narkissos

Junior Member
Joined
Jan 9, 2006
Professional Status
Certified Residential Appraiser
State
Michigan
Modifications, Additions, or Deletions
This appraisal report is subject to the scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications contained in the report form. Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser's continuing education or membership in an appraisal organization are permitted.

Mike,
Please tell me how one can include additional EA's and still be complying with the signed cert??
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Because I didn't change an assumption, I made an extraordinary assumption. No way is Fannie Mae, Freddie Mac, or any other GSE going to make me do otherwise.
 
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