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Income operating statement

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Lee SW IL

Thread Starter
Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
I have a request from a client to complete and Income operating statement. On a property I did not appraise, they will provide me the all the information, and the borrowor's phone number. The AMC requesting this, will no longer use the appraiser that appraised the property.

My typical market area does not have much rental property, I very rarely appraise income property.

But, would you complete the IOS on a property you didn't appraise.
I could see why one wouldn't do it, and why one would complete the IOS.

Just looking for your thoughts.

Thx Lee
 

rtubbs

Junior Member
Joined
Jan 15, 2002
Lee, it's an Operating Income Statement (OIS) and I think you would be asking for trouble if you completed it. Problems I see: you may not know what the market rent is, much less the actual rent; without having inspected the property, you would not know ages of components in determining the replacement for reserves; etc.

If the client asked you to only complete the OIS, who did the original appraisal? what happened to the original appraisal? must've been used for the loan.

I smell a rat!

Ron in Alabama
 

Lee SW IL

Thread Starter
Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
You know, I just wanted someone to tell me not to do it.

I also smell a rat, they said the they will no longer use the appraiser that did the appraisal. My responds was, then how good is the info he provided?

I turned them down.

Now that Ive thought about this, I asked a stupid question. Why would I complete the operating statement.

Thank god its Friday, the Buds are on ice and going down nice as I finish my final report for the week.

SEEya
Lee
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Don't do It!!!!
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Somewhere in the back of my mind, it says you Can Not Do That; there is something with USPAP or FNMA, that rings a bell and can't put my finger on it right this second. It is not only limited to the OIS doc. either 8O
 

Ray Ohler

Sophomore Member
Joined
Jan 15, 2002
since you don't have the benefit of interior inspection you would have to do a whole lot of prep work...such as, a copy of the other appraiser's report and statements from the owner regarding equipment, fixtures, etc. AND make the whole thing based either on a hypothetical conditions or extraordinary assumptions AND if they want it for $100 - forget it. In fact, forget it anyway, the fee for the OIS would rival the appraisal fee. Which in that case, this post is moot. :lol:
 

Shannon

Freshman Member
Joined
Jan 17, 2002
I've done this several time, as there are few appraisers locally who do residential income properties. Rarely do I see the value conclusions of the other appraiser. Most of these orders come when the lender realizes that the house is not owner occupied, even though the loan officer said it was.

Whenever I felt I wanted to see the property, I charged more and went. Make sure you pay close attention to the compentcy requirements. Your originally post said you didn't do a lot of income properties. Do you feel strongly qualified to estimate rent and expenses?

Stay healthy.

Regards,

Shannon Julian
Chapel Hill, NC
 
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