Drive-by for Non-lending purpose

[Doug Wegener]

I have a client (an agent) who wants a drive by appraisal of a current listing but it is not for lending purposes. The intended use is for a potential buyer to establish an offer price.


The old 2055 form does not look appropriate to me as it specifically states in the pre-printed language that it is for a mortgage finance transaction.


Although I like the convenience of using the 2055, it seems to me that the GPAR (I use ACI) would be the more appropiate form with the scope of work indicated and the proper certifications and limiiting conditons.


Do you use the old 2055 for drive by if it is not a mortgage financing transaction?

 

[Lee Lansford]

...

Do you use the old 2055 for drive by if it is not a mortgage financing transaction?

No, of course not.

Residential appraisers who most frequently complete appraisals for use in residential lending have to get away from the world of Fannie forms when the intended use is something other.

 

[HF Mudd]

I use form GPRES2 (Wintotal) for such assignments.

 

[Terrel L. Shields]

A narrative will look the most professional. I can do one as fast as I can most forms anyway. 2055's imho are totally worthless for any use. A USPAP mine field.

 

[The Warrior Monk]

Lending forms are for lending purposes. I recommend using a GP form, or the AI form (better choice, IMHO). You could also use a custom narrative format.

 

[Sid Holderly]

A short form GP in Alamode, a Summary Appraisal Report in NCV (1 main page), or a short narrtive.

 

[hastalavista]

I won't argue against the sentiment that using a non-lending pre-printed form for a non-lending client is the best choice.

The old 2055 could be used with the appropriate modifications. The current forms, with their prohibition against modification, should not be used.

If I recall, ACI's GPAR form has a check-box in its pre-printed SOW section that allows the appraiser to indicate if the SOW included an interior/exterior inspection of the improvement or if the inspection was exterior.
When I do a drive-by, I make it clear that my observation of the subject was from the public street (usually sitting in my car) and that the photo of the subject included in the report reflects the limits of what was observable.

I'm doing an inspection today (Saturday, a rare event for me) for a client who is thinking of selling his house; he contacted me because I did a refinance appraisal on his home 3-years ago.
I'm debating whether to use the AI form or just do a narrative (the fee is sufficient for either).

Good luck!

 

[Doug Wegener]

Narrative

A narrative will look the most professional. I can do one as fast as I can most forms anyway. 2055's imho are totally worthless for any use. A USPAP mine field.

It's been so many years since I have done a narrative (pre-licensing days) that I wouldn't feel comfortable. I would need to take a new narrative class.

I think I will give the AI form a shot. That was a good suggestion from Mr. Wimpleberg

 

[The Warrior Monk]

I think I will give the AI form a shot. That was a good suggestion from Mr. Wimpleberg

I use the AI form form any non-lending work that does not need to be presented in narrative format. If there is any form that is "USPAP-compliant," that's the one. Basically, all of the issues are addressed on the form, and there is enough space in appropriate areas on the form to add narrative.

 

[mark hurlock]

I have a client (an agent) who wants a drive by appraisal of a current listing but it is not for lending purposes. The intended use is for a potential buyer to establish an offer price.


The old 2055 form does not look appropriate to me as it specifically states in the pre-printed language that it is for a mortgage finance transaction.


Although I like the convenience of using the 2055, it seems to me that the GPAR (I use ACI) would be the more appropiate form with the scope of work indicated and the proper certifications and limiiting conditons.


Do you use the old 2055 for drive by if it is not a mortgage financing transaction?

Doug,

I would not complete an exterior inspection for a purchase offer assignment. I want to see the property.

So unless you are being refused access by the seller, I would do an interior. JMO don't argue.

It is your responsibility to determine the appropriateness of your assignment conditions and just because the client asked for an exterior does not excuse you from liability.


This is a purchase not subject to risk tolerance that a bank would use to accept or reject an exterior inspection.

If you are refused access, then different story, just emphasize why you didn't inspect the interior and all the assumptions etc.

I prefer the general purpose form for non lender appraisals. But FNMA forms can be used when appropriate. Just because a form indicates it was intended for a particular purpose does not mean it is unsuitable for another. You need to decide if the particular form suits your purpose and idicate why.