Duplex on a 1004?

[Carnivore]

My guess is this is most often requested to limit the fee to that of a typical SFR fee. If so then good luck to you. Im not putting one on a 1004 for form for any reason.

Fee is a reasonable consideration for an assignment. If your chargeing less thus using something less then why not keep your professional standards high and charge the lesser fee and maintain the professional appearance?

If a new client ask for samples would you send a 2+ family appraisal reported on a SFR form as an example of your best work?

You only get one chance at making a first impression!

 

[Mark K]

I have a lender who has requested that an assignment for a duplex be reported on a 1004 form. Is this kosher? Supposedly, this is not going to the secondary market. If allowable, should I put this on the old form?

As long as they are aware of the reporting limitations of this form, sure you can do it. I'd use the old form with adequate, additional comments, if acceptable. I've appraised hundreds of duplexes on the old 1004. Nothing misleading, illegal, or unethical about it. Some "standardized form" addicts will disagree but as stated throughout in the replies, you can use any reasonable standard form or cocktail napkin if its acceptable to your client and produces a credible result.

A 2-4 unit income form might be easier in the long run, but if they want a 1004, give it to them.

 

[Lee Lansford]

Any other potential user of the report that doesnt agree that the "form" should be use who may place reliance upon the value conclusion.
Why not put the appraisal on a 2-4 family form ... it makes no sense to me and then EVERYONE knows.
I will advise my clients that they will have a better time selling the loan, it will be far less misleading, and I would prefer to do so because it addresses things the 1004 doesnt address.

My guess is this is most often requested to limit the fee to that of a typical SFR fee. If so then good luck to you. Im not putting one on a 1004 for form for any reason.

You may elect to do all of the above and I have no problem whatsoever with what you elect to do.

 

[Lee Lansford]

Any other potential user of the report that doesnt agree that the "form" should be use who may place reliance upon the value conclusion....

Define "potential user".

Do you mean ANY party who may come into possession of the appraisal? That is, do you mean "UNintended" users?

 

[Lee Lansford]

Reporting form or format is a scope decision between the appraiser and the client. Verbal, whatever form or even toilet paper is perfectly acceptable if the parties agree and there is complete disclosure as required by USPAP. Putting something on an inappropriate form (say in accordance with FNMA guidelines) will only result in the appraisal being not usable to submit to FNMA. With proper disclosure, it is not misleading.

I.E.: I have a client who lends his own money. He likes the old QAR 2055 form with walkthrough for all 1-4 family because it saves his already strapped borrowers a little money.

He could care less about the potential income capability - he is only concerned about market value based upon the DSCA.

Ken, the "form-purists" will certainly disagree with you!

 

[Pat Butler]

The room grid on the 1004 wasn't designed to deliniate the number of rooms in EACH unit, especially if they differ between the units. Nor does the room grid in the sales comparison approach offer such deliniation if it would be necessary to adjust for such. There just isn't a space to do that.

And the majority of multi-unit properties are used by the owner to generate rental income, and the 1004 doesn't have any fields that would be appropriately report that.

I can see it working only if the subject and comps are nearly identical so that they require very few adjustments so that the format and contents on the sales comparison grid doesn't interfere with the reporting. But as soon as the room count issue comes up, the reporting will get very confusing. Throw in a 4-unit property that has a couple of units with only one-bedroom with comps that have two-bedrooms and the lack of a room breakdown in the SCA grid will result in a very confusing appraisal.

Sure, you can report an appraisal on toilet paper and/or add numerous addenda to make it work. But why do that when a proper form is available?

 

[Carnivore]

Some peopple think I am a forms purist. Quite the contrary!

Here a point some of you have made. My client like this..., my client does not need that...My client is not sending this to the secondary or fannie mae...

So if your client is just not needing all those complicated and specialized forms...Then why are you giving them any form at all? If all they want is the MV then...

Why not a simple letter with the stated value and effective date along with attached cert page and value definition and small SOW? DOnt forgetr your signature!!!

Why confuse the reader? Why not make it very easy to understand?

I am absolutely amazed that the CG's in here would even think of pounding and squeezing a weird property into a 1004.