Jungle Boy
Senior Member
- Joined
- Oct 30, 2002
- Professional Status
- Real Estate Agent or Broker
- State
- Florida
Hey Ed,
do you pass the "Sunday afternoon test" ?
I do.
I also share your zeal.
Good post!
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Drive By Or "windshield" Appraisals
- Thread starter Ed
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Hey Ed,
do you pass the "Sunday afternoon test" ?
I do.
I also share your zeal.
Good post!
Ed
Junior Member
- Joined
- Feb 18, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Pennsylvania
Jeff..... My mentor and I do alot of New Construction and Yes, it's based on Plans and Specs we get from the Lender. It is a Proposed Appraisal based on those Plans and Specs. However, we also get to do Draw Inspections so we can see, YES SEE what's being built. So, we know what has been done to the home. No Assumptions to disclaim or guessing. Sorry Dan.......
I feel, and yes it's my opinion, that a New Construction Appraisal is very different than a "Drive By" Appraisal.
I feel, and yes it's my opinion, that a New Construction Appraisal is very different than a "Drive By" Appraisal.
Ed
Junior Member
- Joined
- Feb 18, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Pennsylvania
OK, my wife is calling me, so I'll leave you all alone for a while. Keep the responses coming. I had no idea that I could create such an argumentative Post. I enjoy reading and responding. Great Site. Keep it up......
Tom Foster
Senior Member
- Joined
- Apr 18, 2003
- Professional Status
- Certified Residential Appraiser
- State
- California
I was thinking (dangerous for me) and I remember years ago doing appraisals for some fat cat millionaire that used to lend his own money for second trust deeds.
His take was - don’t worry too much about the condition of the interior of subject house I lend on. If that homeowner goes into foreclosure all those nice countertops, appliances, garage door opener, cabinets, lighting fixtures, etc. will all be in the back of his truck in 2 hours heading down the freeway.
So if a house had a brand new kitchen it was still considered average to him.
That’s why if the credit is marginal, he never goes higher that 90% LTV.
This investor guy was very down to earth, and liked to go on the appraisals with me and pick my brain. He would always by lunch and drinks.
For the past 7 years he’s been building car washes and those mini storage facilities and making good money doing that. Just builds them, sells them and moves on to something else.
Tom
His take was - don’t worry too much about the condition of the interior of subject house I lend on. If that homeowner goes into foreclosure all those nice countertops, appliances, garage door opener, cabinets, lighting fixtures, etc. will all be in the back of his truck in 2 hours heading down the freeway.
So if a house had a brand new kitchen it was still considered average to him.
That’s why if the credit is marginal, he never goes higher that 90% LTV.
This investor guy was very down to earth, and liked to go on the appraisals with me and pick my brain. He would always by lunch and drinks.
For the past 7 years he’s been building car washes and those mini storage facilities and making good money doing that. Just builds them, sells them and moves on to something else.
Tom
Dan Leggett
Senior Member
- Joined
- Jan 15, 2002
- Professional Status
- Certified General Appraiser
- State
- Mississippi
I wouldn't expect any less on new construction. I didn't realize your subjects and comps were limited only to properties you had observed under construction. My apologies for the misunderstanding.
Baldwin
Junior Member
- Joined
- Feb 20, 2002
- Professional Status
- Certified Residential Appraiser
- State
- New York
I understand about putting value on something you haven't seen, but we do see the exterior, the neighborhood, the style of house, garages, porches, etc... We are putting in an "Extraordinary Assumption" regarding the interior. "Interior information is derived from county records, past MLS information, conversation with the owner" etc... We do not inspect the interior but we do inspect the home from the exterior. I don't like these appraisals either but I'm sorry to say they are here to stay so we need to do them as good as we can and cover ourselves.
vargasteve
Junior Member
- Joined
- Jan 21, 2002
- Professional Status
- Certified Residential Appraiser
- State
- California
I think you recieved a lot of responces due to the fact that you have kinda 'set yourself' on little pedestal (based on your verbage), let's be honest. I guess your talking about some 50 - 100% of the appraisers on this forum. You post asked help to move you to understand how to do something, but your not really interested in doing it - just knocking those who do. I don't feel insulted (but there is a little I'm OK your not OK in you), however if your mind is already made up then perhaps your post shouldn't have been made, and you wouldn't be throwing any darts at anyone.
I don't think you were 'overtly' trying to 'knock' other companies & the appraisers who appraise for them, however you don't seem very interested in changing what could be considered a pre-concieved notion. I'll bet you my paycheck if your mentor has no work for your company other than 2055's you'll be eating your hat... and very well may be'for the end of 2004. In the future your going to see Alan Greenspan pull the low interest rate plug, and the games will begin
I don't think you were 'overtly' trying to 'knock' other companies & the appraisers who appraise for them, however you don't seem very interested in changing what could be considered a pre-concieved notion. I'll bet you my paycheck if your mentor has no work for your company other than 2055's you'll be eating your hat... and very well may be'for the end of 2004. In the future your going to see Alan Greenspan pull the low interest rate plug, and the games will begin
Farm Gal
Elite Member
- Joined
- Jan 14, 2002
- Professional Status
- Licensed Appraiser
- State
- Nebraska
~ Shrug ~.
The cleint gets what they pay for <_< , and I tell them so in the report:
We don't get inside the comps either.
Scope can be your friend.
Our state has more or less announced that they will not prosecute for driveby appraisals that do not suit the client.
I feel safer with a solidly disclosed set of limitations on a driveby than on any other sort of assignment. And I am NO number hitter.
If the value ain't there, order a REAL appraisal.
My fee is $X00.00 B)
The cleint gets what they pay for <_< , and I tell them so in the report:
We don't get inside the comps either.
Scope can be your friend.
Our state has more or less announced that they will not prosecute for driveby appraisals that do not suit the client.
I feel safer with a solidly disclosed set of limitations on a driveby than on any other sort of assignment. And I am NO number hitter.
If the value ain't there, order a REAL appraisal.
My fee is $X00.00 B)
CANative
Elite Member
- Joined
- Jun 18, 2003
- Professional Status
- Retired Appraiser
- State
- California
Anything can be appraised.
In this case, you are merely using public data to make an extraordinary assumption and the limiting conditions on the 2055 make that clear (if you certify that you've inspected from the street, then any conditions on the interior which would adversely affect the marketability of the property were not apparent.) The scope of the appraisal has been narrowed and the client is aware of that and has agreed to in in advance.
A 2055 can be done with an exterior inspection from the street or an interior and exterior inspection. A 2055 report is a limited appraisal (you have invoked the departure rule by not reporting the cost approach ** you must still do it and it must be retained in your working file)
We charge full fee for ANY appraisal. We will not do driveby's in 2 of the counties we serve because they do not report property characteristics. We also won't do them for oddball or complex properties. We make it clear in our fee schedule that not all properties qualify for a drive-by appraisal and it is up to each appraiser to decide.
It's funny (and at the same time annoying) when an AMC gets militant about WHY are we charging the same fee for a drive-by as a full appraisal. Why is none of their business. We're still on the hook for the value, we still have to use all 3 approaches, we have to fully comply with USPAP, etc., etc. Not measuring saves what, about 30 minutes. Why should I charge half the rate for that?
In this case, you are merely using public data to make an extraordinary assumption and the limiting conditions on the 2055 make that clear (if you certify that you've inspected from the street, then any conditions on the interior which would adversely affect the marketability of the property were not apparent.) The scope of the appraisal has been narrowed and the client is aware of that and has agreed to in in advance.
A 2055 can be done with an exterior inspection from the street or an interior and exterior inspection. A 2055 report is a limited appraisal (you have invoked the departure rule by not reporting the cost approach ** you must still do it and it must be retained in your working file)
We charge full fee for ANY appraisal. We will not do driveby's in 2 of the counties we serve because they do not report property characteristics. We also won't do them for oddball or complex properties. We make it clear in our fee schedule that not all properties qualify for a drive-by appraisal and it is up to each appraiser to decide.
It's funny (and at the same time annoying) when an AMC gets militant about WHY are we charging the same fee for a drive-by as a full appraisal. Why is none of their business. We're still on the hook for the value, we still have to use all 3 approaches, we have to fully comply with USPAP, etc., etc. Not measuring saves what, about 30 minutes. Why should I charge half the rate for that?
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