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

[Bobby Bucks]

Appraisers (many, that is) don't need enemies. They have themselves.

Best forum post of the century. So true.

 

[Andrei Fin]

Hmm. You can reasonably get enough info from the owner to ascertain the condition rating for the sales analysis. But regarding the following question I would still want to make an EA. Or perhaps have the owner sign a certification.
Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property?

As Fannie Mae has begun to examine appraisals completed using our temporary appraisal flexibilities in Lender Letter LL-2020-04, Impact of COVID-19 on Appraisals, one issue we’ve observed is that some appraisals rely on assumptions about the subject property condition. Whether completing an exterior-only or a desktop appraisal, the appraiser must have a data source for all the relevant characteristics including interior condition. Obtaining that information, whether it be from homeowners or other sources, is not only encouraged, but is required. This is addressed in the FAQs regarding the temporary flexibilities (Q47): As stated in Lender Letter LL-2020-04, the appraiser’s certification #10 was removed recognizing that the appraiser may have to rely on information from an interested party to the transaction (borrower, real estate agent, property contact, etc.) and additional verification may not be possible. The removal of this certification acknowledges this could affect the assignment’s results. If adequate information is not available to complete the appraisal, the assignment cannot be completed. The standard GSE appraisal forms include certification 10 that obligates the appraiser to verify “from a disinterested source, all information in this report that was provided by parties who have a financial interest in the sale or financing of the subject property.” We intentionally removed certification 10 from the revised certifications, required for our temporary appraisal flexibilities, in recognition that there may be scenarios where an interested party is the only available source for some subject property data. When using the temporary flexibilities, we encourage appraisers to communicate with homeowners or agents to fill any gaps in the descriptive information needed to perform the appraisal. The appraiser cannot assume that the condition is “average” or “similar to the exterior of the home,” for example.

 

[NJ Valuator]

this is referring to COVID and traditional appraisals alike

 

[DWiley]

Hmm. You can reasonably get enough info from the owner to ascertain the condition rating for the sales analysis. But regarding the following question I would still want to make an EA.

Have you read the assumptions that are baked into the COVID certs? If so, what are you concerned about that isn't addressed in those revised certs?

 

[Terrel L. Shields]

 

[NJ Valuator]

Is the owner permitted to send interior photos to the appraiser for traditional exterior only(NON-COVID) appraisals?

Also, if past photos of the subject were available in the MLS from however many years ago, can the appraiser assume that the subject is the same currently?

Lastly, for traditional exterior only(NON-COVID) appraisals, if the only source of condition is the owner, then the assignment would need to be declined because we need verification from a disinterested source as well, right?

 

[Addie]

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?

You don’t get out of bed for $500.....please explain. Did you get fooled? Why did you get out of bed for negative $ - $75?

 

[Fernando]

All exterior appraisals now, I go through all the data sources available including permits check and I call the borrower to verify information.
Borrowers love to talk, sometimes too much. After awhile I get the idea of the condition and I let owner ramble on.
If borrower has nothing to brag, it's not that updated.