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Info brochure for the home owner-need input

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Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I am working on a brochure (updating an old one actuall) to hand to all home owner that explains privacy rules and something about the process of appraising. My two main goals are to tell the client not to call me. That they have to deal with the lender. Second is to explain that I can not give the appraisal to another lender or provide them with a copy.

Below is the rough text of what I have so far. I have some room that I put something else. Anyone have any suggestions that might be included? Once I get this completed if anyone wants it they will be welcome to use it or edit it.

~~~~~~~~~~~~~~~~~~~~
APPRAISAL PRIVACY
Can I get a copy of the Appraisal?


Rules promulgated by the Federal Financial Institutions Regulatory Agencies allow borrowers a 90 day period during which to file the written request for a copy of the appraisal.

The lender must supply a copy, not the original appraisal report.

The residential borrower, or potential borrower, must obtain the appraisal copy from the lender, not the appraiser. Only the residential borrower, or potential borrower, has a right to receive a copy of the appraisal from the lender. Sellers, brokers, and other parties who are not the borrower have no right to obtain a copy of the appraisal.

Who will see My Appraisal?

Your appraiser will furnish your lender (our client) a copy of your appraisal. We cannot furnish anyone else a copy of the appraisal. The only exceptions are requests from a court of law or the State Appraisal Board.

If you have questions regarding the appraisal you must call the client (your lender). The appraiser cannot discuss the appraisal with anyone other than the client.

THE APPRAISAL PROCESS
Most people want to know what their appraiser thinks the home is worth as soon as he finishes his inspection. Your appraiser is just collecting data when he visits your home. There is much work left to be done before he develops an opinion of value.

There are three steps in an Appraisal, collecting, analyzing and reconciling data. The first step in collecting data is the inspection of your home. Measuring the outside, noting the condition, an interior inspection and all the while looking at overall condition and amenities of the house.
Next your appraiser will analyze the information he has gathered and decide on the best method(s) to use to determine the value. The most commonly used and usually the most reliable method of valuation for residential housing is the Sales Approach to Value. He will search through past sales data for houses that are as similar to your house as possible. (i.e. same style, age, condition and neighborhood) Most lenders want appraisers to use sales that occurred within the last year. Sales older than one year may not represent the current market conditions.

Once comparable sales are found he will adjustment the sales price to allow for some of the differences because no two houses are ever the same. Using these adjusted sales we can then estimate what the Market (or the average buyer) is likely to pay for your house.

The Cost Approach method is based on the premise that value is indicated by the current cost to construct a new improvement (house) minus accrued depreciation (wear and tear) plus the value of the site. This approach is most accurate when the subject is new or near new.

Income Approach is used primarily for commercial or rental property. Most times it is not applicable to Single Family Residential property.
Once your appraiser has completed all the applicable approaches to value then they will analyze the results and estimate the Markets Opinion of Value.

AN APPRAISAL IS NOT A SUBSTITUTE FOR A HOME INSPECTION
An Appraisal is not a Home Inspection. The purpose of most Appraisals is to determine the market value of the house to obtain a Mortgage. Your Appraiser should take into consideration condition and deterioration present in the house. Yet the Appraisal inspection is not an in depth inspection. Home Inspections are much more in depth and may reveal problems or safety issues that an Appraisal inspection will not. Under Alabama Law an Appraisers license does not qualify an Appraiser to perform home inspections. Home Inspectors are licensed separately.
 

G-man

Member
Joined
Feb 4, 2002
Professional Status
Licensed Appraiser
State
Ohio
:idea: Just a thought regarding your information sheet. If you tell the home owner that an appraisal is not an inspection, you may wish to use a different term than "an appraisal inspection". I have learned from a few C.E. courses that this does cause confusion with home owners and it is best to use terms like "appraisal walkthrough or viewing" instead of inspection. That way the owner is not confused between an appraisal and a home inspection. Just my little $.02 worth. :D
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
:lol: promulgated is an awful big word to put in the first complete sentence.... you might use two or three smaller and more 3rd grade accessable in it's place.

You might scare 'em off from reading the balance of your Very Well written document right there at the start...

Jeff, you have really tightened this up. I think I shall shamelessly copy and use as writ!

excepting promulgate :lol:
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Thanks Lee Ann, if you want a PDF copy when I am done you welcome to it.

I agree with Promulgated (however it's spelled). That is direct from the Colorado letter that was posted earlier this week. I intend to reword that. Word's Thesaurus didn't have a good little substitute so I just left it for now.

Can you think of anything I might want to add? I keep feeling like I am forgetting something.
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
In the sales comparison section, I would add something to the effect of the adjustments are made based on an items CONTRIBUTION value, not its cost.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
umm another thought

(hate to bring this up)
Despite the terribly awkward 'rules of english' I think it unconsionable to present a sexist phrased brochure.

You have used the plural "they" or "your appraiser" in many places, but other places defaulted to the male pronouns "he, his".

I would personally replace those with admittedly more awkward 'he or she' OR continue with 'the/your appraiser'.

Other thought (completely undeveloped-for your an other folks perusal) is explaining that the inspection is the tip of the iceburg in the work needed to develop an opinion of value. Butt and research time form the other 90%.

GOT to get back to work :oops:
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Thanks Bill, at first look I think I agree with you on that.

LeeAnn. Tisk tisk. Are we trying to be "politically" correct? :)

In my defense I did say this was a rough draft. And I was trying to change the he's to something else but it got to be a real pain and I stopped for now. As you probably know it is proper to he when you don't know if it is male of female. And I hate politic correctness with a passion! I believe strongly in common courtesy but political correctness is for the most part stupid IMO.

However since I was planning on sharing this I did start to change it to "your appraiser" or something else. To be totally honest saying "he" doesn't bother me (or my wife) since it is acceptable english. But since I am willing to share I did intend to make it gender neutral in case any of the ladies on here wanted to use it.

And just to make myself clear, I have a great respect for the women in my life! Don't want you misread anything I said!! :)
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Jeff:

PC has it's place. Else SOME folks would still be using 'Jew-boy', 'Slant-eyes', '@@@@@' and other perjorative terms in everyday speech. It is only when they get regularly hung in the court of public opinion that they keep such prejudice (intentional or sadly casual) to them-selves.

I realize that MOST of the posters to this forum are mostly fairminded (or get chewed into a reasonable appearance of same by the teeth on this forum :vamp: )

I do think, that presenting such a brochure with 'he-him' and the implication that 'they' are all guys is improper, however awkward the solution may be.

That said I certainly see your point: I said I hate to even bring it up :?
 

Cowgirl

Sophomore Member
Joined
Jan 22, 2003
Professional Status
Certified Residential Appraiser
State
Texas
Whoa! You two play pretty, as my Mom always said.

Lee Ann,

Be considerate that someone is willing to share their hard work with you. Jeff, was asking for opinions on additional information not an ethics and grammar lesson. Bringing in the sex/race card is really reading beyond the lines don't you think? You are entitled to your opinions and can make any changes to your brochure that your wish. Don't be so sensitive and enjoy the benifits of being different from men. I for one believe in equal rights but we all are different and I enjoy my doors opened and heavy packages carried for me. Maybe it is a southern thing.
Just one more note all us minorities have more than equal rights these days.

Jeff,

Remember the second word always makes an argument.

I have an addition opinion for under the area of adjustments.
It is Late--VERY ROUGH DRAFT:

"The adjustment amounts used are extracted from your current sales market and based on contributory value. That amount is not necessarily the actual cost of that adjusted item, but the value that it contributes to the property over all."

I would love a PDF copy. It is a great idea.

Thanks and remember "Play Pretty"
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Adjustments are the market's perception of value rather than a cost basis. Instead of promulgated (sic) how about "as adopted by"



Using terms like "regularly hung" isn't sexist?

 
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