Field Review With Interior Inspection

[CANative]

I've been getting numerous requests for field reviews with interior inspections. They're a pain in the neck due to difficulty in getting access.

The most recent is for a multi-family.

I can deal with the fact that the appraiser used comps on the other side of the lake in a better town. Hard to find comps. But the appraisers used single family houses for comps. One had a granny unit.

I can deal with the fact that the appraiser pulled a 209 GRM out of thin air when most 2 unit properties in this area are at about 150-175.

I can deal with the cost approach only giving $15,000 in depreciation on a 40 year old POS.

I can deal with the lower unit being a combination of below grade basement with a porch enclosure... owner did not even bother covering the former exterior walls. Interior walls have the original lapboard siding.

I can deal with the fact that the propery "has a lake view" even if you can't actually see the lake from the house itself.

But what about all the mold and mushrooms growing in the (unoccupied) lower level? It appears that when they converted the the partial basement (the house is on a steep slope, so some might call it a sort of walk out basement) and then enclosed the porch, they didn't take into account drainage. So it's always wet down by the mud sills - I think... but I have no expertise in building.

Not sure how to render an opinion of value in the appraisal review.

 

[Richard Carlsen]

Those things that you can deal with are an indication why more and more appraisals are being reviewed. Somebody is beginning to see the handwriting on the wall.

It is interesting you post this today as I received an assignment yesterday on a remodeled older house calling for an interior inspection. SF owner-occupied so getting in won't be a problem if they want to close the loan. I cannot believe that the appraiser did not include any interior photos in the report, especially when the subject is a remodeled/upgraded 90 year old house on 10 acres. UW also saw a pole building in the background of the rear photo and wants to make sure that the pole building is not on the subject's property. This indicates to me that the UW's are starting to look at things other than the bottom line value.

 

[philip]

That appraiser was a real idiot. He forgot to mention that the home grown mushrooms have an added value as they can be sold at the local outdoor market for a premium.

 

[Smokey Bear]

I can deal with the fact that the propery "has a lake view" even if you can't actually see the lake from the house itself.

Guess you forgot to stand on the toilet of the 2nd floor bathroom to look out sideways from the tiny bathroom window?

 

[wyecoyote]

That view could have been from the rooftop.

 

[Mike Garrett RAA]

A review with an interior inspection? Give me a break....it's an appraisal! Charge accordingly.

 

[CANative]

I charge the same fee for any appraisal. Reviews, 2055's, 1004's, whatever.

Price differences are dictated by property location and characteristics.

My issue on this one is coming up with a value when I am uncertain about the cause and curability of the mold/fungus and moisture problems.

Even if these problems were not present, the value is significantly less than reported in the original appraisal.

The tenant in the upper level unit told me I was the 3rd appraiser to visit in the last 2 months, and that over the last 2 years there have been at least 15 to 20 appraisers visiting the property.

Since I had to contact the property owner to make access arrangements he has my phone number. He keeps badgering me about the value. He told me he would give me a lot of money if I could give a value higher than the original appraisal. He said he needs the high appraisal because he wants to roll all of his debt in tis loan. He's a real piece of work.

 

[Richard Carlsen]

A review with an interior inspection? Give me a break....it's an appraisal! Charge accordingly.

I do. Reviews can be significantly more time consuming and less predictable than regular appraisals. I charge about a +15% premium.