extraordinary assumption

[PropertyEconomics]

I would have gone down the driveway knock on the door, if no one was home, shoot and leave. If someone was home I would introduced myself interview the occupant, then shoot and leave. This is a business decision. I would not rely upon another appraiser’s work, most appraisers do not.

I would not trespass on a property I was asked not to contact the borrower / tenant on. Wouldnt that be a violation of the scope of work agreement?
It could be for a foreclosure .. instead of a loan.

 

[c w d]

I agree with Don. How do you know the septic has not failed, that the well is still producing an adequate supply of potable water? I do not think a drive-by is appropriate for homes on acreage

While I agree with you, how would you know the septic hadn't failed or that the well is functional on any driveby?

 

[PropertyEconomics]

USPAP doesnt say its ok on one property type and not on another. It is a personal business decision as to what we each think ... the real issue of this thread is that it can be done with proper EAs covering what needs to be covered and a proper scope of work.
USPAP says it is so ... and thus it is so.

 

[Fred]

Drive by appraisals have a place in our business ... the question is do you feel comfortable doing them. You can make all the EAs you need to do a credible job.

The thing that confuses me is when assuming things about the interior condition of the property on a driveby appraisal became "extraordinary," when you have to make the same assumptions on every driveby.

 

[PropertyEconomics]

The thing that confuses me is when assuming things about the interior condition of the property on a driveby appraisal became "extraordinary," when you have to make the same assumptions on every driveby.

Steven .. I think drivebys are quite extraordinary .. dont you?

 

[Hamlet]

That would be an ordinary extraordinary assumption. All to commonly used in the lending world.

 

[c w d]

I've always been some what confused about extraordinary assumptions vs an assumption in the context of appraisals. I knew how to use them. I just didn't recognize what made them extraordinary, exactly. At my last 15 hrs USPAP class I made a point to question the instructor. We verbally jousted for 10 minutes about assumptions and what made some extraordinary. I did not come away with a definitive answer. But, I recently did a narrative and it put them into context.

Assumptions or ordinary assumptions are typically your general run of the mill assumptions made in every appraisal about what the appraiser is and is not and how the appraiser assumes certain things to be certain ways. These are the assumptions that go into every report.

Extraordinary assumptions are those made which address specific issues not ordinarily addressed.

Maybe I'm just specially dense that way *shrugs*

 

[Jeff Horton]

I do some Guvment foreclosure work. I am always told not to approach the owner so these are always Drive-bys. The good thing is they furnish me the previous Appraisal grid so I can get the info on the house. I always make the Assumption that house is in bad shape inside. I have no problem with that and state in the Appraisal where I got my info.

If they ask me do one I can't see, I would pass on that too. As was said, how do you know it's still there?

 

[Fred]

I've always been some what confused about extraordinary assumptions vs an assumption in the context of appraisals. I knew how to use them. I just didn't recognize what made them extraordinary, exactly. At my last 15 hrs USPAP class I made a point to question the instructor. We verbally jousted for 10 minutes about assumptions and what made some extraordinary. I did not come away with a definitive answer.

Thre is no "definitive" answer. USPAP isn't definitive on this, ie doesn't "define" the difference between ordinary and extraordinary, but plunges right ahead making unique standards for "extraordinary."

Then along comes Fannie with her form calling everything "extraordinary." Even on her driveby form, she says it's extraordinary to assume something about interior conditions.

 

[Louis Pompeo]

"Ordinary" vs. "Extraordinary" Assumptions

Ordinary Assumptions are assumptions that you make that do not impact value.

Extraordinary Assumptions are assumptions that you make - that if found not to be true - will impact the final estimate of value.