Field review questions

[gorillakimchi]

Good morning Sir, Sisters, and Brothers

I have some basic questions about field review (Form 2000)

I did a few exterior only (2055) appraisal during re-fi boom, so I assumed it's kinda same as 2055, so accepted the order.

But after I looked up 2000 form, I realize that it's quite different from what I thought!

I thought that I am going to review the subject property but the form seems like that I have to review the previous appraisal report.

If, what I am thinking is right, I feel a bit anxious because I never reviewed other appraisers report. (Personally, not good at judging or criticizing people..)

However, I believe everyone has a beginning and I think that I need to know how to do this assignment for my future. So here's my question.


1. The client did not provide any information but subject address. What should I request to the client in order to complete this assignment?

2. Basic 2000 form seems very simple. The client didn't give me any guidelines about the report. What is the common requirement for a form 2000?

Ex) Most of 1004, 1073, 1025 forms require at least 6 comps (4 sales, 2 listings). Should I get 6 comps for 2000 ?

3. I'm going to take photos "subject street, subject view from the street, subject side views" Since it's not a full appraisal, I don't think I can take a pic of inside and rear side. 3~4 pics are enough for a field review?


Thanks for reading & have a great day!

 

[alebrewer]

Good afternoon and welcome. So, for any transaction related to a Fannie/Freddie securitization, you aren't allowed to gain expertise during the assignment - you must posses the expertise for the property type, location, and appraisal type prior to accepting the assignment. That said, I'm no one else's judge, just throwing that bit out there.

WRT your question: (1) yes the 2000 for is a form report designed to report the findings of the review of another appraisal - thus, you'll need a copy of the appraisal they want you to review. (2) read Fannie/Freddie guidelines for the common requirements for form 2000. (3) no additional sales are required on the 2000 if you agree with the selection of sales used in the origination report. If, however, you don't agree with the sales used in the original report, you'll need to provide as many supplemental sales as necessary to support your opinions and conclusions. (4) unless the SOW includes interior inspection, you'll only be taking exterior photos of the subject (and all comps used - both yours and the origination appraiser's).

 

[Mark K]

. (Personally, not good at judging or criticizing people..)

You don't judge or criticize the other appraiser. This is about analyzing and reviewing the report and stating why you do or don't agree with the results of the original report. If you don't agree then you need to re-grid the existing comps or find other, better comps that support your conclusion.

Check the data provided in the report for accuracy, i.e., does it match the MLS or the Assessor data. Check for reasonableness of the adjustments and the support provided for same.

On many occasions I've stated that I disagreed with some aspects of the report, however the value conclusion is reasonable and credible.

Frequently these are more time consuming than doing an appraisal from scratch. Take your time. If you know a peer that has done these, ask him to look over your review.

Take the Joe Friday approach from Dragnet..."Just the facts, ma'am, just the facts."

 

[Bob Ipock]

I would find a Review class before you do one. Yes you would need the entire appraisal to properly do the work. Is it a desk review or field review? Do you feel like you are competent?

 

[alebrewer]

Great point, Mark. Always remember - you're reviewing a document, not a person.

 

[gorillakimchi]

Good afternoon and welcome. So, for any transaction related to a Fannie/Freddie securitization, you aren't allowed to gain expertise during the assignment - you must posses the expertise for the property type, location, and appraisal type prior to accepting the assignment. That said, I'm no one else's judge, just throwing that bit out there.

WRT your question: (1) yes the 2000 for is a form report designed to report the findings of the review of another appraisal - thus, you'll need a copy of the appraisal they want you to review. (2) read Fannie/Freddie guidelines for the common requirements for form 2000. (3) no additional sales are required on the 2000 if you agree with the selection of sales used in the origination report. If, however, you don't agree with the sales used in the original report, you'll need to provide as many supplemental sales as necessary to support your opinions and conclusions. (4) unless the SOW includes interior inspection, you'll only be taking exterior photos of the subject (and all comps used - both yours and the origination appraiser's).

I really appreciate your concise and clear answer. Also, I will keep in mind what you mentioned in the beginning.
Thank you sir!

I would find a Review class before you do one. Yes you would need the entire appraisal to properly do the work. Is it a desk review or field review? Do you feel like you are competent?

It's a field review and I am looking for a class to take actually! Mr or Ms Albrewer explained well above and yes, I am competent to do this assignment. Thanks for your reply

 

[gorillakimchi]

You don't judge or criticize the other appraiser. This is about analyzing and reviewing the report and stating why you do or don't agree with the results of the original report. If you don't agree then you need to re-grid the existing comps or find other, better comps that support your conclusion.

Check the data provided in the report for accuracy, i.e., does it match the MLS or the Assessor data. Check for reasonableness of the adjustments and the support provided for same.

On many occasions I've stated that I disagreed with some aspects of the report, however the value conclusion is reasonable and credible.

Frequently these are more time consuming than doing an appraisal from scratch. Take your time. If you know a peer that has done these, ask him to look over your review.

Take the Joe Friday approach from Dragnet..."Just the facts, ma'am, just the facts."

I appreciate your time and advice. I will remember that I'm reviewing a report not an appraiser. Thank you so much!

 

[J Grant]

reviewing makes us better appraisers.

The field Review 2000 form is simple. However, the review itself can be time-consuming. Literally, answer each question as asked on the form, one at a time. You can practice reviewing one of your own appraisals ( see if you disagree with your own value lol)

The most important question IMO are the comps choices the most locationally similar to the subject - you have to research if better comps were available and not used, which is a red flag problem of why many reports end up in review - bad comp choices or lousy adjustments - or somebody caught an error that impacts value and results.

After you see if their comp choices were good or not, that is usually the make it or break it wrt do you think their value is accurate ( which is what the form asks ). If they did not use good comps and other comps should have been used, grid and adjust them and see what the value is - you can also grid the comps they used if you see they made bad/not supported adjustments.

You do not have to grid out comps but many times it turned out to be a need

Whether you feel their value or accurate or do not, either way you have done an appraisal - agreeing with their value makes it your value now too - a value opinion per USPAP can be a benchmark.

Good luck if you decide to do it - normally we do not go inside the subject property and rely on MLS photos and photos from the appraisal you are reviewing

 

[gorillakimchi]

reviewing makes us better appraisers.

The field Review 2000 form is simple. However, the review itself can be time-consuming. Literally, answer each question as asked on the form, one at a time. You can practice reviewing one of your own appraisals ( see if you disagree with your own value lol)

The most important question IMO are the comps choices the most locationally similar to the subject - you have to research if better comps were available and not used, which is a red flag problem of why many reports end up in review - bad comp choices or lousy adjustments - or somebody caught an error that impacts value and results.

After you see if their comp choices were good or not, that is usually the make it or break it wrt do you think their value is accurate ( which is what the form asks ). If they did not use good comps and other comps should have been used, grid and adjust them and see what the value is - you can also grid the comps they used if you see they made bad/not supported adjustments.

You do not have to grid out comps but many times it turned out to be a need

Whether you feel their value or accurate or do not, either way you have done an appraisal - agreeing with their value makes it your value now too - a value opinion per USPAP can be a benchmark.

Good luck if you decide to do it - normally we do not go inside the subject property and rely on MLS photos and photos from the appraisal you are reviewing

I am actually sometimes asking myself "is this the best value??" lol

I'm going to jump into that previous appraisal and will find out how I feel about it.

Thanks for your kind explanation & have a great day

 

[Dublin ohio]

I am actually sometimes asking myself "is this the best value??" lol

I'm going to jump into that previous appraisal and will find out how I feel about it.

Thanks for your kind explanation & have a great day

I always ask for the original appraisal before I quote or accept a field review. Never know how much of a PITA in might be. Also your fee should be at least the same as a 1004. More if you have to provide additional sales and your own omv