Exclusion from a panel

[jay trotta]

I did not really care about the bedroom count - I was more concerned with basically half of the home converted to a MIL suite, leaving one bed/two bath for the rest of the home, in a market with almost 100% 3bed/2bath. It did force me to find a similar comp - with only duplexes/shared wall units with similar bed/bath counts. Bed and bath count was not the issue - just the work done without permits (not well done); hiding broken windows with a sheet of wood propped up against the window, fencing that was below FHA standards around a pool - just a bunch of stuff that did not meet FHA standards. The bed/bath count was the least of my concern.

I do document non permitted stuff - however I am not the permit police. I will let the lender make the judgement about lending on the property. Lots of non permitted stuff in this semi rural area with ADU's, guest quarters, large cannabis processing shops, etc. When it is common in the area (which is most of the time) I indicate that the "whatever" is not uncommon, the quality of workmanship and the acceptance in the market and if it will impact value and marketability.

Sounds like an HBU issue, no need to be "permit police", just follow the rules of the road. Good Luck

 

[Sadie]

I did not really care about the bedroom count - I was more concerned with basically half of the home converted to a MIL suite, leaving one bed/two bath for the rest of the home, in a market with almost 100% 3bed/2bath. It did force me to find a similar comp - with only duplexes/shared wall units with similar bed/bath counts. Bed and bath count was not the issue - just the work done without permits (not well done); hiding broken windows with a sheet of wood propped up against the window, fencing that was below FHA standards around a pool - just a bunch of stuff that did not meet FHA standards. The bed/bath count was the least of my concern.

I do document non permitted stuff - however I am not the permit police. I will let the lender make the judgement about lending on the property. Lots of non permitted stuff in this semi rural area with ADU's, guest quarters, large cannabis processing shops, etc. When it is common in the area (which is most of the time) I indicate that the "whatever" is not uncommon, the quality of workmanship and the acceptance in the market and if it will impact value and marketability.

To follow up on my previous comment, Of course the bed bath count is important or you would not have brought it up like you did. How does the market see that 3rd bedroom/bath. It might not see it as a problem like you do. You have a 3 bed 2 bath home, maybe utility is an issue, maybe not. Sounds like maybe quality and condition are not good, but that is a different issue. Line item adjustment. Someone liked the layout enough to do it in the first place and someone else liked it enough to want to buy it. So the demand is there at least for 2 people. I am not saying to ignore the problems with the property, I am saying put the focus on what the more tangible problems are, like the pool fence and broken windows.

 

[Fernando]

The problem with FHA loans is that the type of borrower needs the money. It's near their last resort in getting a decent mortgage and emotions can get complicated when the loan and appraisal fall through. I try to avoid appraisal orders with "desperate" buyers/borrowers. Potential problems when things don't work out.

 

[Mike Ault]

The problem with FHA loans is that the type of borrower needs the money. It's near their last resort in getting a decent mortgage and emotions can get complicated when the loan and appraisal fall through. I try to avoid appraisal orders with "desperate" buyers/borrowers. Potential problems when things don't work out.

Don't you believe that poor people deserve good appraisal service?

 

[Fernando]

Don't you believe that poor people deserve good appraisal service?

Not if lender takes most of the risks. Lender gets final determination with input from appraiser.

 

[Mike Ault]

Not if lender takes most of the risks. Lender gets final determination with input from appraiser.

Why are you shortchanging those borrowers out of your appraisal expertise?

 

[Fernando]

I find them to have more potential problems.

 

[Mike Ault]

I find them to have more potential problems.

The state gives you a license to appraise and intentionally limits your competition. In return, they expect you to offer appraisal services to those who need them. "Desperate borrowers" definitely fall into that category.

 

[Fernando]

The state gives you a license to appraise and intentionally limits your competition. In return, they expect you to offer appraisal services to those who need them. "Desperate borrowers" definitely fall into that category.

USPAP doesn't say I have to do appraisals for "desperate borrowers".
Fortunately, as an independent appraiser, I get to choose what kind of borrowers I prefer to work with.
Being selective allows me to maximize profits and lessens potential problems based on my experience.

 

[Zoe]

Local building code can be very strict in some areas. Trust me I know. Whoever did the addition probably did it to code. Local code will still issue a pass on it with an inspection and application for a permit on it.

JGrant, you said the carpet is unsanitary for the pets but not the humans?

I think the appraiser needs to go meet with the lender and talk with them. The lender wants to continue business with this appraiser, or they would not have asked the appraiser to meet with them.

I don't see where the lender has a leg to stand on with filing a E&O claim. What is the E&O claim going to be filed on?

Obnoxious odors are a problem on marketability.