Exterior Only Appraisal - Assuming Condition is Avg, Assuming Interior Same as Exterior

[Elliott]

Off with their heads!

What's the solution? Have them walk around the house, rise up on your tippy toes and peak in the windows?

 

[DWiley]

Off with their heads!

Not quite the approach I would suggest

What's the solution?

Simple - either (1) get the data, from the owner, MLS, etc. or (2) don't complete the appraisal (as the FAQs state)

Just as one would not use a comp without proper data, one should not do an exterior-only on a subject without proper data.

 

[glenn walker]

Maybe appraisers should read the certifications they are signing?

I read the certifications-the problem is Fannie certifications cannot be amended so we sign them no matter what they say

 

[Meandering]

If one cannot obtain a data source for the interior condition, then the appraisal should not be completed. However, the intent of adopting the revised certifications and allowing use of data by the property owner was to minimize the number of cases where the appraiser could not obtain data.

Fannie Mae LL-2020-03 Updated May 5, 2020 Page 3 of 9

Virtual inspections for appraisals and renovation loans
Appraisers may use virtual inspection methods to augment the data and imagery that is used for either a desktop appraisal or anexterior-only appraisal. All traditional appraisals require the appraiser to perform a complete onsite interior and exterior inspection of the property. A virtual inspection cannot be used as a substitute for the onsite interior and exterior inspection for a traditional appraisal. Additionally, an onsite interior and exterior inspection is required for the Appraisal Update and/or Completion Report(Form 1004D) used to confirm completion of renovation for HomeStyle Renovation loans. Virtual inspections using video and photographs provided by the borrower or contractor can be used to evidence renovation progress to disburse additional renovation funds as described

https://singlefamily.fanniemae.com/media/22321/display

 

[Elliott]

Only problem is the MLS data and pictures are from a sale 5-years ago and owners can and do lie about condition (also most exteriors engagements say the owner is NOT to be contacted). An appraisal is based on a current, specific date.

Once again Fannie is requiring the appraiser to take on more unreasonable liability and that's why we all have million dollar E/O.

 

[DWiley]

Only problem is the MLS data and pictures are from a sale 5-years ago and owners can and do lie about condition (also most exteriors engagements say the owner is NOT to be contacted). An appraisal is based on a current, specific date.

Once again Fannie is requiring the appraiser to take on more unreasonable liability and that's why we all have million dollar E/O.

That is not what is being asked. What is being asked is that one not complete the assignment if there isn't adequate information available.

 

[Elliott]

How many appraisers after inspecting the property, gathering their comparables, completing the information on page 1, and then after an hour of research come to the conclusion that the 'information is not adequate' to draw a peer standard conclusion they cannot opine with GSE certainty on the interior condition? Does the appraiser get $75 for a cancelation?

 

[Mejappz]

Does the appraiser get $75 for a cancelation?

I think you know the answer to that

 

[Lee Lansford]

How many appraisers after inspecting the property, gathering their comparables, completing the information on page 1, and then after an hour of research come to the conclusion that the 'information is not adequate' to draw a peer standard conclusion they cannot opine with GSE certainty on the interior condition? Does the appraiser get $75 for a cancelation?

I would have to think that the prudent appraiser knows if there is sufficient information regarding the subject property before he/she does anything else.

 

[DWiley]

How many appraisers after inspecting the property, gathering their comparables, completing the information on page 1, and then after an hour of research come to the conclusion that the 'information is not adequate' to draw a peer standard conclusion they cannot opine with GSE certainty on the interior condition? Does the appraiser get $75 for a cancelation?

I do not know, as that depends on business arrangements between an appraiser and a client.

What I do know is that the requirement to have a data source for interior condition is not new. It has been a GSE requirement since 2005, and it is printed right on the form:



So, every time I got an order for a GSE exterior only assignment, checking for condition information was the first thing I would do before tackling all those other things you mention.