Great Drive-By Property!!!

[Red Blumenstock]

I received the following message from a friend in the Philadelphia area. What a great example of why drive-by inspections are dangerous.

"I recently looked at a house as an investment property.
Neighborhood was around $100,000 and the house looked fine from the outside. The inside however, had been completely removed. I need to go back and get an inside photo for you. I mean all of the plaster and lath, trim, moldings, plumbing fixtures, electric fixtures. I was amazed. I could not see paying more than $40,000. Maybe I should then get a driveby, cash out and leave town!"

'Nuff said.

Red

 

[airphoto]

Yeah, Red ..

Had one of those .. 200 meters from the road, and behind another abandoned property. Couldn't find it, so was on cellphone to AMC, who was on long distance to the owner in Florida ..

"yes, go back and look in the windows .. the electrician's been working there .. "

New shell .. not even wall studs put in the interior ..

Looked fine from the road ..

 

[rpayne]

Urban row houses are the worst, the front exteriors all look alike, you can't see the rear of the house because it is cut off from the row houses on the next street over. Even if you can get into the lobby you can't see anything anyway but the door. The front windows are eight feet off the ground so you can't see in. I won't do them. I tell the bank that I cannot do them, but I bet they just keep calling until they get someone who will.

 

[Farm Gal]

Maybe we should start a thread that keeps track of which banks DO that consistantly: and then do an expose, (after we collectively pull our funds from those establishments)...

wishful thinking, but maybe slightly realistic?

 

[Ray Ohler]

this is nothing new to Philly. Another appraiser I know had one down in Fishtown (gentrification area) where the "borrower" went out and put a new door and windows in the front of the "structure". Appraiser stood on the pavement DIRECTLY in front of the property and snapped the picture. Put a value of $50,000 on it. Small problem, it only had a front wall. No other walls. Next time you're in Philly, give me a call, I'll show you some appraisals you wouldn't believe. I'm thinking of submitting some of them to Ripley's Believe It Or Not. :lol:

 

[Mike Garrett RAA]

 

[Tim The Enchanter]

I had one that was gutted almost as much. No lath or plaster, only some fixtures, and the 90 year old wood floors and electric and plumbing. I don't remember if he even had heat, but the owner was still living there. The outside looked great, nice looking Victorian duplex. I wished it had been a driveby, it would have been a lot less trouble to me than dealing with this mess. And hey, I disclaim knowledge of the inside to cya, so it's the banks problem not my liability, right.

Driveby on a condo, same thing. You probably don't know anything about the interior other than size and room count, and location. So I always go conservative on drivebys.

 

[G-man]

This is what you may call some learning experience for a new appraiser (that would be me :wink: ). I did one home in the central city area of my home town maybe a 1 1/2 years ago. Most homes sell between 15 - 35K, with the range of homes being below $1000 to some revovated homes in the mid 70's. Pulled up to the house and it looked fine, newer exterior paint, newer roof, should be a piece of cake! Walk inside, there was nothing but bare walls and crack pipes 8O . If I had done a drive-by on this I would most likely come in at the mid 30's, low 40's. Then I do what was supposed to be a drive by in the upscale part of town. Owner estimates value to be 385K, most homes in the 350 - 500 range. Again, piece of cake drive-by. Owner sees me take the front picture and invites me in to view his wonderful home. The owner hasn't touched the house since it was built in 1985. My opinion of value just went south. Man, did I hear it from the LO and some people in my office. "You were supposed to do a drive-by, do a drive-by and forget what you saw." I couldn't and I didn't. That little piece of appraising put my can in the doghouse for about a week in my office. :evil: It still is a bit of a sore point with me and a few people, but I'll get over it :wink: .

 

[Pamela Crowley (Florida)]

G-Man,

Man, did I hear it from the LO and some people in my office. "You were supposed to do a drive-by, do a drive-by and forget what you saw." I couldn't and I didn't. That little piece of appraising put my can in the doghouse for about a week in my office. It still is a bit of a sore point with me and a few people, but I'll get over it.

It's makes me sad and angry when our 'peers' react this way. You expect it from LOs, not our co-workers. Doesn't leave much respect for them. I'm glad I work alone now and found this forum. Knowing you did the right thing has to feel good.

 

[Anonymous]

this is a classic example of flipping. several chicago area appraisers, lo's, realtor's, and attorney's were recently indicted by the feds. severe penalties and jail time for all have been predicted under the fed's sentencing guidelines. when u see a propoerty like this run!! take your file and send it the agency in your state regulating banks, thrifts, and mortgage scambrokers. :!: