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Here's A New One 2075 On Listed Property

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Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
Got a request for a 2075 inspection only for a refi. Estimate of value 195K. Loan amount 85K. Went to the property and it is listed. I've never run into this on an inspection. Appraisal, sure, inspection never. Nowhere on the 2075 does it ask for sale price, list price, or sale history. Do I report it? Are we bound by USPAP on these stupid things? The borrower is willing to do everything to unlist the property and says she wants to do so anyway. Do I make her? What do you think? It isn't an appraisal.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
:huh: Dunno, it does ask for sources of info..... check the MLS box.


But if it were for an appraisal, and even if it were taken off the market, I'd still disclose the recent listing history.
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
William:

I don't believe the limitations of a form relieves you/us from our responsibility to make our clients aware of relevant information. I have to believe that your client would want to know that the subject property is currently listed for sale. Consider the scenerio that your client were to proceed and complete the refinance and three months later the property sells. Somehow your client learns that the property was listed for sale on the inspection date. What would your response be to your client if he/she called and asked you if you knew that the property was listed at the time you did the inspection?
 

Rich Heyn

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Michigan
William:

My understanding is that this is a valuation service performed by an appraiser, acting as an appraiser, so USPAP applies. At least things like competency and ethics.

However, since it is not an appraisal assignment, review assignment or appraisal consuting assignment, the standards rule regarding sales history, listings, etc., does not apply. But like Larry said, it's just good business to let the client know.

Rich Heyn
 

Patrick Egger

Sophomore Member
Joined
May 29, 2003
Professional Status
Certified General Appraiser
State
Nevada
I think it depends on the scope of the assignment ... but I agree with the others and would advise the client that the property is currently listed. 2075's are used for AVM's, so no value issues but what the client would like to know is factual information, e.g. that the property exists, neighborhood, etc ...
 
Joined
Jan 16, 2002
Maybe this is why they invented this form so we can issue misleading reports :unsure:

Even the biggest sleaze-ball mortgage brokers get annoyed if the subject is currently listed for sale.

I'd go with idea that because you are licensed disclose whatever relevant facts you know about the property, let the "genius" who ordered it worry about it.
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Always a slippery slope ! Sure, you mention the current listing. One finds so often the same audacity of the individual placing the order for the 2075 (acknowledged clearly by all as not an appraisal) to feel compelled to share their "estimate of value", and in your case they told you $195K. Any chance that amount was same as the offering price of the listing ? My addendum page for any 2075 says ..."No market value conclusion for the subject is considered, nor presented, within this brief reporting format. It is important to state that there is NO consent, or lack of consent, for the estimate-of-value expressed by the client and shown on the assignment order received by the appraiser".

I like your borrower's intent to "un-list" the property for you. I very recently had a new 1004 order about 10 days after first doing a drive-by on same address (for same client). My drive-by mentioned and included pictures of active for-sale and for-rent signs on each side of the driveway. When I returned 2 weeks later the owner had pulled the 2 signs out, that morning, and placed them in the garage and the garage door was up as I arrived. My first picture before ringing front door bell was the 2 signs against wall of garage. Damp soil was still caked into the angle iron where the base had been stuck in the front lawn. Mentioned the signs a second time. Two days later I was very near on another assignment....and the signs were back in the ground again.
 

Travis McGee

Senior Member
Joined
Sep 18, 2004
Definitely disclose it. If the owner is taking the home off the market , disclose that too. I write something like "the subject is currently listed, however, per owner, she is removing the subject from the MLS. " Even though it is a "just" a 2075 inspection form, why not cover yourself, why risk your license for some sleaze home owner you'll never see again? Who are these people that list and refi at the same time, anyway? Who knows, maybe when the client finds out the home is listed, they may order a "real" appaisal.
 

Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
Thanks! I disclosed it. I live on the street. It is less than 50% ltv, I know. Just hate to kill a deal if not required. But don't really care though.
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
William:

We don't kill deals, we only report the facts and let the cow chips fall where they may.
 
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