Drivebys

[Joyce Potts]

you are doing an 'extraordinary assumption' as to the condition, that comment is added protection, plus needed for USPAP. c4 at best unless it is newer dwelling. that is my path when i get them, but not many. also, which 'market value' definition are they asking for, which does affect concessions.

I used to think so to, until a rep from Freddie Mac posted on an Facebook Appraisal Group that tax roll information alone, was not enough. And that's what I'm trying to ascertain in terms of peer group posts.

 

[alebrewer]

c4 at best unless it is newer dwelling

Why would you do C4 at best? Calling it C4 when it's really a C3 is no better, or worse, than calling it C3 when it's really a C4?

 

[Joyce Potts]

Why would you do C4 at best? Calling it C4 when it's really a C3 is no better, or worse, than calling it C3 when it's really a C4?

How would you know the difference? This also speaks to support for a condition or quality adjustment, wouldn't you think?

 

[The Warrior Monk]

I used to think so to, until a rep from Freddie Mac posted on an Facebook Appraisal Group that tax roll information alone, was not enough.

Anyone familiar with lending guidelines is aware of this.

That said, intended use is important. Banks can order assignments that are not specifically for securing a mortgage, and different guidelines, or simply USPAP with no additional client/intended user add-ons, may apply.

 

[alebrewer]

How would you know the difference? This also speaks to support for a condition or quality adjustment, wouldn't you think?

You don't - hence the need for an EA - either way. The support comes from the condition of the exterior of the home, as well as the physical age of the home (sans any other documentation, that is). You must have reasonable basis to invoke an EA, but that can come from observation of the exterior IMO. My point was that there seems to be an appraiser mentality that it is our job to mitigate risk for our clients via different actions that tend to elicit more conservative EMV's. Automatically assuming C4 condition, hesitancy to use market/time adjustments when appropriate, inadequate GLA adjustment factors, etc. Our job is to provide well supported estimates of value. It is our clients' job(s) to mitigate risk through whatever mechanisms they think prudent.

 

[Joyce Potts]

You don't - hence the need for an EA - either way. The support comes from the condition of the exterior of the home, as well as the physical age of the home (sans any other documentation, that is). You must have reasonable basis to invoke an EA, but that can come from observation of the exterior IMO. My point was that there seems to be an appraiser mentality that it is our job to mitigate risk for our clients via different actions that tend to elicit more conservative EMV's. Automatically assuming C4 condition, hesitancy to use market/time adjustments when appropriate, inadequate GLA adjustment factors, etc. Our job is to provide well supported estimates of value. It is our clients' job(s) to mitigate risk through whatever mechanisms they think prudent.

An extraordinary assumption, to my understanding, has to be reasonable. Is it reasonable for an appraiser to invoke an EA based solely on the front, driveby exterior observation? This is not a set-up question. You tell me what's generally acceptable to the lenders, GSE's and state boards. This is not about mitigating lender risk, this is more about protecting an appraiser from civil or regulatory litigation.

 

[Tom D]

hello, yous can call it c1 or c6 if you want from the condition of the exterior. it's still an extraordinary assumption, you didn't see the inside. you can do an appraisal on a napkin without seeing it. it's a drive by, without seeing the inside. you want a well supported estimate of value with a guess on the interior condition. well, you then wouldn't accept it, would you. and that might be smart of you if you feel that the liability outweighs the fee.
you also better not think you are so good, with your x-ray vision, that you don't want to invoke EA, cause your foot is in the value bear trap.

 

[alebrewer]

An extraordinary assumption, to my understanding, has to be reasonable. Is it reasonable for an appraiser to invoke an EA based solely on the front, driveby exterior observation? This is not a set-up question. You tell me what's generally acceptable to the lenders, GSE's and state boards. This is not about mitigating lender risk, this is more about protecting an appraiser from civil or regulatory litigation.

If you're looking for what is acceptable to the GSE's and state boards, you should probably solicit the GSE's or state boards - this is a poor forum to get guidance on what they would expect. As to what lenders will accept - you should probably solicit your individual lenders. I had thought your question was directed at what other appraisers would do? If you are soliciting the opinions of other appraisers, I'm offering mine. If you don't like it, you're most welcome to pass on it.

As to whether it's reasonable in my opinion, I'd have no problem at all calling this property C3 based on exterior observation:


This one, however, I would not be comfortable invoking an EA:

 

[Joyce Potts]

If you're looking for what is acceptable to the GSE's and state boards, you should probably solicit the GSE's or state boards - this is a poor forum to get guidance on what they would expect. As to what lenders will accept - you should probably solicit your individual lenders. I had thought your question was directed at what other appraisers would do? If you are soliciting the opinions of other appraisers, I'm offering mine. If you don't like it, you're most welcome to pass on it.

As to whether it's reasonable in my opinion, I'd have no problem at all calling this property C3 based on exterior observation:
View attachment 54454

This one, however, I would not be comfortable invoking an EA:
View attachment 54455

You're NEVER going to get specific guidance from GSE's or state board. AO's are as close as you're going get, and those are also vague and ambiguous, in most cases. I'm looking for peer input.

 

[alebrewer]

I'm looking for peer input.

You say that, yet almost every input given has elicited an argumentative response from you. I really like most of what you post, Joyce. That said - if you're really interested in peer input, it might help to take a less aggressive stance with your responses.