Drive-bys....Why??

[Elliott]

What lame brain came up with the
idea of appraising from a car?

I've always quoted the same price
for a 2055 drive-by as a 2055 interior.
Still, I get requests for the drive-by....
hey its your money, but I suspect that's
what the FNMA computer spits out, so
that's what the LO asks for.

Do people just not like us walking
on their properties? Do banks care
so little about their money they would
just as soon throw it down a rat hole?

I had 2055 drive-by on a newer house where
the assessor said it was 1660 SF, the
realtor said it was 2000 SF, and then
the builder said it was 2150 SF. I ended
up giving them a 'range of values' cause
I don't know who's right.

I'm thinking of adopting the policy....
I will only do 2055's interior/exterior.
Am I missing something?

elliott

 

[rtubbs]

Elliott, I don't do "drive-by" appraisals. I appraise based on an exterior inspection (observation); could be either a limited or a complete appraisal.

As part of our complete (interior and exterior) appraisal of a property, we compare it to properties that we've, hopefully, slowed down enough to shoot a picture of it from the street. A lot of appraisers just take the photo from MLS and never even look at the property. How do we know that the interior of that comp compares to the interior of our subject? Truth is, we don't.

USPAP, Fannie Mae, Freddie Mac all recognize that there is a degree of risk involved in appraising based on an exterior inspection. Disclose it and go for it.

I do appraisals based on exterior only inspections. However, I decline to do those if I do not have what I consider sufficient information about my subject (old appraisal, MLS, property owner, etc.). You have to be the judge of whether you will or will not perform them. However, those appraisals are allowable. Good luck.

 

[Jo Ann Meyer Stratton]

Elliot:
In that situation you need to call the client, tell them the problems and that the order needs to be upgraded to an interior 2055. If they refuse, then you refuse the order. If, in your opinion, a cost approach would be absolutely necessary, then you tell the client it needs to be upgraded to a 1004. Again, if they refust, you refuse the order. No matter what you do, explain (either to the client vebally before accepting the order) or if accepting the order, explain in the report everything. If you do complete an exterior only 2055, be sure and have a paragraph about Extraordinary Assumpitons and possibly even a paragraph about a Hypothetical Condition---but explain, explain, explain.

 

[Frederick R. Ruffell]

Jo Ann, EVERY "drive by" that I do has an Extraordinary Assumpiton that the subject is in "Average" condition. I further expalisn that this means "Average marketable condition for the neighborhood".

 

[Verne Hebert]

Ya' know, in the 80's these were done on the old 704 form by hand............and this product was used appropriately. For very low LTV in house HOE and 2nd mortgages. The primary purpose was too assure the improvements existed ( sometimes they didn't), check out the general condition, and get a "ballpark" number based on some assumption.

We are seeing these DB's and 2055's improperly used often these days; but HEY!. Do you really expect more, from the people ordering these things (I NEED AN APPRAISAL!).

 

[jtrotta]

have only done a few 2055's - don't like them - always feel if I can't see the inside of the subject, whats the point :?: - ooops, they retain these so they have someone to chase when it goes bad and the list of CYA's equals all the time it would take me to do a 1004-striaght forward job, so I don't reduce any Fee's.


8)

 

[Steve Owen]

Interesting. With this potentially divisive subject, where I often don't agree with a lot of the people who post on the forum, I agree with nearly everything everyone has posted in this thread so far. That is in spite of the fact that several of the posters obviously have somewhat differing opinions of the 2055 product. Interesting.

 

[Rick Neighbors]

I know an Appraiser, that posts on here regularly, who had a lender "accidently" request a 1004, when they really wanted a 2055. When the Appraiser got inside the home, several bedrooms were unfinished. I mean wall studs, and slab. No insulation, drywall, or floorcoverings, etc. Me thinks the lender was trying to pull a fast one??!! After casually telling that story to some of my regular customers, they have at least started asking for interior inspections on their 2055's; and we measure all 2055/Int's and submit a drawing. I even take interior photos and keep them in the work file.

As for using MLS photos, especially without driving the sales. I have one that I carry in my brief case to prove my point. Two sales, side by side, 1st sale has right address and photo of sale number two. Sale number two has correct photo, but has address off by 10 numbers. Visible in photo of numbers on mailbox.

Another MLS sale had really nice comments about home. I drove it and it had burned inside. Was being gutted, to the studs, and all the brick was being removed.

And yet I still know of a couple of Appraisers here locally that never drive their comps, just cut and paste out of the MLS. One can only hope that someday they will get caught.

I drive all my comps! My 2001 Chevy truck has 31,000 miles on it already, and I have only had it 16 months. But I sleep good at night.



Rick