Form 1025

[st.michael]

I accepted an assignment (4 unit appraisal using Form 1025). It's been a while since I have worked on this type of report. Defiantly rusty. Any feedback with regards to the field inspection and or the report writing would be greatly appreciated. Is anyone is wiling to share a field check list with me? PLEASE and thank you in advance.

 

[TRESinc]

take a blank form with you

 

[Dublin ohio]

Blank form would probably not be very helpful since it is more of a summary. I treat each unit individually when I inspect since the interior characteristics can vary from unit to unit. Note each units floor plan, interior characteristics and living area. But remember you are dealing with gba not GLA. when it comes to the complete building.

 

[TRESinc]

it's a jump off point. i did the same thing (in my pre-digital days) with the 1004 and had plenty of room on the back for specific notes above and beyond the check boxes on the front.

 

[Restrain]

Floor plan of each unit/unit type. Photos, description of condition of each unit; rents, rental terms for each unit.

 

[Doug in NC]

I just effectively turned down a 1025 assignment by quoting what I believe to be a reasonable fee for this type of assignment. In my opinion, they involve probably at least twice the amount of work as what a standard 1004 report requires, so why not twice the standard 1004 fee? Client didn't go for it because it was 33% higher than their initial fee offer.

To be more precise, the fee the lender wanted was the same fee that they have been getting for about the past 20 or more years. Real estate has appreciated during that time, Realtors get paid more for doing their job (because their payment is tied to real estate value), groceries and the cost of living have risen dramatically, and I would venture to guess that even the salaries of bank employees has risen significantly over the past 20 years; so why not the appraisal fee???

 

[JTip]

2017 1025 is $1000 minimum.

I could do two 1004 and a 2055 instead and make more....

 

[Webbed Feet]

I accepted an assignment (4 unit appraisal using Form 1025). It's been a while since I have worked on this type of report. Defiantly rusty. Any feedback with regards to the field inspection and or the report writing would be greatly appreciated. Is anyone is wiling to share a field check list with me? PLEASE and thank you in advance.

I certainly agree with the posts regarding fees. Beyond that, I have some advice for you. Do NOT create a "rental survey" out of MLS listings reported rents. Don't be lazy, be proactive. If you want to end up with an income approach, a GRM, that makes any relative sense to the other approaches to value, take a Saturday morning and go out to the area to do door knocking of similar rental units and interview the tenants directly regarding:

• Rents
• Term of tenancies (is it a long term tenant renting below market?)
  
• What they are getting for the rent
  • Size unit
  • # Bedrooms, # baths, amenities
• What is included in the rent and what is not
  • Utilities, garbage, etc.
• How long has it been since the last rental increase?
• How long have other units been vacant?

Then later do not blindly just accept the reported MLS listing rents on the sales you use as what you should be using to mathematically calculate their indicated GRMs. If a sale comps rents make no sense at all versus your field rental survey and that sale comp seems to have a very skewed GRM indication, use your field survey to estimate the market rents for that sale. Then use those market rents to recalculate from the sale price a correct indicated GRM. Generally, the buyers know what they are doing regarding what they pay. It is mostly the real estate brokers at the time of listing putting very bogus rental information on the listing that can and does completely mess up most appraisers because the appraisers blindly use that information without verifying the market independently themselves. Mostly because copious numbers of our trade members place profits before integrity, fast and cheap before ethics. Oh, and they can't get decent fees for the work and should have turned it down.