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DRive by on DUPLEX?

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Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
I have been asked to do a driveby appraisal on a duplex, apparently for foreclosure purpose. Which form could be used and how would you go about it, not knowing the rents? I have limited tax assessor information and could not see it very well from the street. It is my best client, and I want to do what I can for them. Help. Thanks.
 
A

Anonymous

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I hate assignments like that. I would use the 2055 and check the boxes indicating that you are relying on assessors records and exterior view only. You should indicate that the property is an income property but that you have not been provided any income information. I also state that as a result of no interior inspection an appraisal has not been completed.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
William:
Will they let you do this in narrative form? I personally find this easier to complete that way....
If not (sigh) the 2055 OR 1004 can be used but you have a boatload of Extraordinary Assumptions to write out.
~~~~~~~~~~~~
Walt:
Hunh?

If you give them a value IT'S an APPRAISAL

You can omit the Income and Cost approaches since you lack sufficient information to quanitfy, but you are still performing an appraisal.

Me I'd make it a limited restricted use...
 

slacker

Junior Member
Joined
Feb 20, 2002
I have been asked to do a driveby appraisal on a duplex, apparently for foreclosure purpose. Which form could be used and how would you go about it, not knowing the rents? I have limited tax assessor information and could not see it very well from the street. It is my best client, and I want to do what I can for them. Help. Thanks.

Every once in a blue moon I'll get a request for 2055 exterior only on a townhouse. Good luck trying to figure GLA. I usually call the home owner and go inside anyway.
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
William:

I don't see why you can't do a drive by inspection and still use the 2-4 form. Just explain that no interior inspection was completed. All physical characteristics are per public records. The Income Approach could be utilized by estimating the market rent. The Cost Approach would be a WAG. Every drive by foreclosure I've ever done, the client has always asked that the improvement are assumed to be in fair condition.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I would do it on a small income form because it is income property. You will be making a number of assumptions as to condition, leases, income, etc. Do it correcty and charge accordingly.

The 2055 is not designed for small income but you could use it and and the appropriate income and expense analysis plus comparable rent schedule forms. I doubt seriously that they will accept 2055 for this type of assignment. We have had them order a 2055, then a 1004, and finally ask for small income..and we charged each time they changed their minds.
 

Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
Thanks for the input. You all are the best. I appreciate your responses and hope you have a merry Christmas.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Just a note: Be sure to adjust down for condition. If this is a duplex that is going into foreclosure, you can bet the ranch that it's going to require a LOT of work. New paint, carpet, vinyl, appliances, probably new HVAC system, probable damaged bath fixtures, probably holes in the wall, not to mention $1000-2000 in clean-up.

If the owner of the duplex is losing the property, they surely haven't done any maintenance, and the occupants are not going to be taking care of a property when they can't get things fixed.

Speaking from experience on numerous foreclosed duplex/fourplex properties.

Roger
 

Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
I can't imagine doing a duplex on a 2055. I would either do a narrative, or use a 1025 and add lots of narrative concerning the limited nature of the appraisal and info available.
 
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