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Drive by with garage conversion

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Donny Lindner

Thread Starter
Junior Member
Joined
Aug 3, 2005
Professional Status
Certified Residential Appraiser
State
Texas
I have been assigned a driveby. I called the borrower. He said the two car garage has been converted into a game room (CHA).

Should I rely on the borrower info and state that in the report. Garage has been converted per borrower and included in GLA?

Or, should I use only the info from the tax records, ie. dwelling area and garage area?
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
Call the client and tell them that based on the description of a non-typical use of the garage, the report must be upgraded to a 1004. Otherwise, decline the order.

It is hard enough appraising what you cannot see when it is normal and typical. It is nearly impossible when something is out of the ordinary.
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
I have been assigned a driveby. I called the borrower. He said the two car garage has been converted into a game room (CHA).

Should I rely on the borrower info and state that in the report. Garage has been converted per borrower and included in GLA?

Or, should I use only the info from the tax records, ie. dwelling area and garage area?

Mr. Linder,

Your are victim of a malaise that is rampant amongst real estate appraisers. I am not certain how it is spread, but it must be something we all come in contact with. Must be comp search requests from mortgage brokers with predetermined value demands! .. ;)

Anyway, the malaise Latin name is "Nonreadusofcertificationsus" and it has various symptoms from causing eyebrow raising posts to license revocations. The cure is actually reading all of the preprinted language on the 03/2005 Fannie forms, including the certifications. In your case focusing on number ten would be a really good idea before any additional symptoms develop. After you've done this, get lots of rest and call us in the morning.

Webbed.

P.S. Many of us on the forum got our immunization shots for this a really long time ago. How so many other appraisers have never received any is something the CDC needs to look into.
 
Last edited:

Donny Lindner

Thread Starter
Junior Member
Joined
Aug 3, 2005
Professional Status
Certified Residential Appraiser
State
Texas
Called client to see if they want to upgrade to full. Waiting on response.
 

Donny Lindner

Thread Starter
Junior Member
Joined
Aug 3, 2005
Professional Status
Certified Residential Appraiser
State
Texas
Question, What if lender still wants a driveby and instructs me to not include garage in GLA?
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Donny, while twittling your thumbs waiting for the return call, read and re-read the preprinted SOW and Certs on the " Drive by" forms. I think your answer may be found there.
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
Question, What if lender still wants a driveby and instructs me to not include garage in GLA?

Mr. Lindner,

Fantastic question! Let me ponder


.


.


.

.

Ok, I'm done pondering. ;) .... Because you have to disclose what the owner has told you... a client asking for something contrary to something that may, or may not, be true, is asking for either a HC or an EA right? Only you will not really be sure which one it is. I'd say a EA. Good then! So how are you going to bring that EA into a 03/2005 Fannie form without using a checkbox in the Reconciliation section of the report to do so? Namely CB4, which requires an inspection by a third party to prove or disprove the EA. How does that sound to your client? You can move forward using the 03/2005 forms with an EA and using CB4 to bring it in, thereby causing a third party inspection anyway... or maybe the client will accept the old 2055 form instead so the EA can be used without a required inspection... Bet they will insist the 03/2005 version has to be used.... shucks, just can win huh?

Webbed.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Question, What if lender still wants a driveby and instructs me to not include garage in GLA?

Some might consider that an unacceptable assignment condition given the purpose and intended use of the report. :new_smile-l:

Remember: A lender can ask for anything they want to; sure they have their own regulatory guidelines and rules to follow, but that's their problem.
It is up to us (as individual appraisers) to determine if the requests are consistent with our regulatory guidelines and responsibilities.

Unless garage conversions, regardless of condition, quality or configuration of the conversion, have no impact in your market (or always the same impact), then I would not be confident in my ability to conclude credible results given the reports intended use, the limitations of the Certification and SOW on the current 2055 form and given the circumstances that you describe (an unverified type of garage conversion that may or may not have an impact on the total living area and the overall value of the subject).

Good luck!
 

TXCBoy36

Junior Member
Joined
Oct 3, 2007
Professional Status
Certified Residential Appraiser
State
Colorado
I have been assigned a driveby. I called the borrower. He said the two car garage has been converted into a game room (CHA).

Should I rely on the borrower info and state that in the report. Garage has been converted per borrower and included in GLA?

Or, should I use only the info from the tax records, ie. dwelling area and garage area?

If you are doing an Exterior Only Driveby, then you have to base on what the county records show or another appraisal where you have personally witnessed the improvements. I would never make an adjustment for a Garage Conversion on a drive-by appraisal. If they want that to contribute to the value of the property, then they need to order a full appraisal.

If the Garage has been converted then you need to personally see that they have met all the requirements for it to be considered additional GLA.

JC
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
I agree with the others, either upgrade to a 1004 or decline the order.

The certifications attached to the 2055 are a minefield.
 
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