How Do You Describe The Subject Property?

[Deleted member 80407]

CONDITION OF IMPROVEMENT COMMENTS:

Read some of the above post. It seems to me that some of the above posters are putting wrong information within this section of the report.

I believe that the reader of the report is looking only for the a description of the interior improvements and not site size and a decription of the floor plan. The appraisal has a section for discussing site improvements and the sketch (if interior walls are show) describes the floor plan.

I usually will describe such items as:
Flooring, interior trim, kitchen/bath updating, heating/cooling system, electrical, and amenities such as a fireplace, terrace, deck or patio. I believe, the reader does not want to read a book but rather pertinent information. However, sometimes when a house has extensive updating or interior finishing, my naratives can be a page long. Interior pictures are taken showing updating or dated finishing (usually in kitchens and baths) in every report I type. If the property has a superior view, a picture of the view is also included in the report. Pictures speak a 1000 words and support either + or - adjustments applied.

 

[Mountain Man]

The yard is well landscaped with mature sod on all four sides and features gently rolling topography. The driveway access is narrow due to a drainage easement, but the wonderful Koi Pond off sets any negative market reaction.......

Koi Pond??? Wait a minuet... that there is a Detention Pond!!!


Oh sorry, I guess this belongs under the Realtor Description post. :lol:

 

[Tim The Enchanter]

I don't use realitor words like nice, clean, cozy, bitchin', or whatever. I describe the important features as objectively as I can, of each room, or at least of the house and property. Going through the place description in a "flowing" manner, as I was taught way back when. Block wall perimeter, flagstone deck pool/spa with waterfall, BBQ with sink and refrigerator, professional landscaping with months of uncollected dog waste. Entry foyer has..., living room..., kitchen granite counters, stained wood cabinets, stainless steel appliances, Master bath has spa tub, oversize glass shower, double sinks, bidet... Other baths updated with yadda..... Yadda Yadda spider webs, etc.... OK, the webs are personal property.

I think there at least needs to be a little more detail than fits in the check boxes on the 1004 form. And certainly more than fits the 2055, to convey the quality and condition of the property. The 2055 doesn't even ask if there's A/C! High quality needs more detail than low or average quality imho. And pics all around.

 

[Richard Carlsen]

sum·ma·ry ( P ) Pronunciation Key (sm-r)


adj.
Presenting the substance in a condensed form; concise: a summary review.
Performed speedily and without ceremony: summary justice; a summary rejection.

n. pl. sum·ma·ries
A presentation of the substance of a body of material in a condensed form or by reducing it to its main points; an abstract.



Have we drifted over the line in some cases from summary to narrative?

 

[Otis Key]

Agreed Richard. I do elaborate more than just the typical minimum that I see when I review reports. However, I don't go to the lengths shown above. I'll mention updates, modernization and improvements by specifics, but not the rambling descriptions shown above. I will also say that "a picture says more than I care to type" and takes a lot less time and sure makes good ammo when the UW calls for an explaination.

 

[Richard Carlsen]

I will also say that "a picture says more than I care to type" and takes a lot less time and sure makes good ammo when the UW calls for an explanation.

Agreed Otis, which is why we have gone to 6 block exterior and 6 block interior photo pages on all of our residential reports. Sometimes we add an additional 6 block supplemental photo page to show additional referenced items in the report. One of the exterior photos is a closeup of the roof which I understand UW's just love.

The 1004 and 2055 forms are summary forms the lender has specifically requested, is satisfied with and will not be confused by. The photos only go to serve to let them see for themselves what has been "checked in the box". No need to add lots of words unless the client has called for a narrative.

 

[Chris Colston]

Thank you Otis and Richard ...in reading the wonderous prose of our colleagues I was beginning to second guess the way I've been doing form reports for over 18 years.

I do go into a bit more detail than form asks for..."The subject is a single story Ranch style, 3 bedroom 2 bath, dwelling with a functional floorplan. Flooring is (ceramic, porcelain, marble, wall to wall carpet, parquet, hardwood, terrazzo, etc) which is (or is not) typical for the area. Kitchen appliances are (old, builder standard, upgraded or new), kitchen and bath counters are (laminate, solid surface, etc). One of the bathrooms has a jetted tub and separate shower. There are ceiling fans in most rooms. The central A/C appears adequate for the climate conditions of Central Florida. There is a front entry porch, rear screen porch and screened pool. Personalty items such as refrigerators, washer, dryer are in place however, no value is given in this report."

If I need more space to explain any updating, modernizing or lack of it I take it. I, like Richard, use the 6 photo pages, as many as I think will help reinforce the report. I try to avoid brand names such as Jacuzzi, GE, Jenn-Air, etc.

I don't believe the underwriters are going to read a 2 page description in a SUMMARY report.

 

[Artemis Fowl]

Was making me nervous too...

I usually list updates/modernization, briefly describe any obvious deficiencies, and summarize superadequacies (if present).
It's not a descriptive paragraph but more of an outline format.
I thought that what the boxes on page 1 were for.

I spend more time outlining subject and comparable sales/listing history and analysis of current agreements. Sparse description is rarely stip'd but a complete history is always asked for.

 

[Richard Carlsen]

"The subject is a single story Ranch style, 3 bedroom 2 bath, dwelling with a functional floor plan. Flooring is (ceramic, porcelain, marble, wall to wall carpet, parquet, hardwood, terrazzo, etc) which is (or is not) typical for the area. Kitchen appliances are (old, builder standard, upgraded or new), kitchen and bath counters are (laminate, solid surface, etc). One of the bathrooms has a jetted tub and separate shower. There are ceiling fans in most rooms. The central A/C appears adequate for the climate conditions of Central Florida. There is a front entry porch, rear screen porch and screened pool. Personalty items such as refrigerators, washer, dryer are in place however, no value is given in this report."

Chris

Go over your written description and then look at page 1 of the 1004. Nearly everything you have written, other than your opinions, at covered there in the summary fields. It stands to reason that in the 2055, if Fannie wanted to know all of the details about the subject, they would have put a place on the form for us to enumerate them.

I find it difficult to understand why one would make an easy job (filling in a summary form) difficult (writing an Epistle on the subject property) when it is not 1.) needed and 2.) not requested by the client.

 

[Otis Key]

Originally posted by Richard Carlsen@Aug 6 2005, 07:11 AM

Chris

Go over your written description and then look at page 1 of the 1004. Nearly everything you have written, other than your opinions, at covered there in the summary fields. It stands to reason that in the 2055, if Fannie wanted to know all of the details about the subject, they would have put a place on the form for us to enumerate them.

I find it difficult to understand why one would make an easy job (filling in a summary form) difficult (writing an Epistle on the subject property) when it is not 1.) needed and 2.) not requested by the client.

Ditto Richard's comments Chris - no offense.

You've already described the style, exterior, design, interior finish, etc. Like I said before, if there have been updates, modernization, changes, improvements, etc., then I'll expound. If they want a self-contained, then ante up $$$$$$$$$.

I'll include statements such as "the borrowers indicate that the kitchen was updated in 1999, carpet replaced in 2000 in the main living areas, roof in 2004 and the water heater replaced in 2003." But, those are condition factors that I add to noted deferred maintenance factors.