language for exterior only appraisals

[eltaquito]

Have not done a exterior only in many years. Looking for the best verbage to use. Appraisal for pre-foreclosue purposes.

Eltaquito:new_smile-l:

 

[Pittsburgh Pete]

Write whatever it is you need to say? Sorry, don't want to bust your chops but this request verifies the whole "form filler" stereotype.

That said, suggest you find an old 2055 that you may have completed and steal their verbiage as you are incapable of developing your own.

 

[AnonApprsr]

Pete if you're bored, go take some updated Zone pictures.

Here's a couple I just used on a 2055 the other day:

Scope: This appraisal is based on available information gathered by the appraiser from public records, other identified sources, exterior (from the street) inspection of the Subject property and neighborhood, and selection of the comparables within the Subject market area followed by their use in a reconciliation of an estimate of market value. This summary appraisal report is intended for use by the lender/client only. The intended use is to evaluate the property that is the Subject of this appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. No additional intended Users are identified by the appraiser. This report is not to be relied on for any other use.

Conditions of Appraisal: Please note that this was an exterior, off-site inspection only. If there are any physical or functional inadequacies about the property or structure which were not made known to the appraiser, either through market research or information provided by any parties involved with this appraisal, the appraiser cannot be held accountable for any affects on the value of the property such conditions may or may not have. If a full appraisal with an on-site and interior inspection is requested, the appraiser reserves the right to adjust the final value estimate based on findings which were previously unknown.


That should be enough to get you going. Make sure you explicitly note the sources for any data on condition/interior info.

 

[Mike Garrett RAA]

Start by reading the certification pages you will be signing!

 

[NC Appraising]

First, Do what Mike said. Read the back of the 2055.


https://www.efanniemae.com/sf/formsdocs/forms/2055.jsp

Exterior-Only Inspection Residential Appraisal Report


This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit; including a unit in a planned unit development (PUD), based on an exterior-only inspection of the subject property from at least the street. This report form is not designed to report an appraisal of a manufactured home or a unit in a condominium or cooperative project.


Learn How to Use the New Market Conditions Addendum


Gain an understanding of and recognize the sources of market information necessary to analyze market conditions. Our new recorded training is organized to address the Market Conditions Addendum (Form 1004MC), effective April 1, 2009, section by section. Also review the FAQs for additional information about the form and other appraisal topics.

• View Recorded Training
• FAQs (.pdf)

• Download PDF
  (.pdf, 93K, 6 pages)

Modifications, Additions, or Deletions

This appraisal report is subject to the scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications contained in the report form. Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser's continuing education or membership in an appraisal organization are permitted.



Scope of Work

The scope of work for this appraisal is defined by the complexity of this appraisal assignment and the reporting requirements of this appraisal report form, including the following definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a visual inspection of the exterior areas of the subject property from at least the street, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report.



The appraiser must be able to obtain adequate information about the physical characteristics (including, but not limited to, condition, room count, gross living area, etc.) of the subject property from the exterior-only inspection and reliable public and/or private sources to perform this appraisal. The appraiser should use the same type of data sources that he or she uses for comparable sales such as, but not limited to, multiple listing services, tax and assessment records, prior inspections, appraisal files, information provided by the property owner, etc.



Required Exhibits

• A street map that shows the location of the subject property and of all comparables that the appraiser used;
• Clear, descriptive photographs (either in black and white or color) that show the front of the subject property, and that are appropriately identified. (Photographs must be originals that are produced either by photography or electronic imaging);
• Any other data--as an attachment or addendum to the appraisal report form--that are necessary to provide an adequately supported opinion of market value.

 

[NC Appraising]

The problem is that they all want us to use a particular form, but when their scope of work changes or when they want us to make hypothetical or extraordinary assumptions, the form does not change or they will not let use use another form.

I found this on the web, and is from an AMC that I do not work for.
When you go to upload your report, you remove fannies limited conditions and replace it with theirs.

https://lcc.landsafe.com/pub/preforeclosure2055Amendment.doc

Now you need to find out what the scope of work is, and what assumptions, and extraordinary assumptions, and hypothetical conditions can be made.


I have some clients for pre-foreclosure that says to complete the 2055 no matter what and to make all the assumptions you need based on the MLS or tax card. This means assuming the condition, and other.

Some wants you to note if the exterior is in average condition, then assume that the interior is in average condition also. Some lenders want you to assume average condition altogether.

or

Do they demand that you know the actual condition or amenity features or other important facts? This means adhering to the pre-printed scope of work and limiting conditions. See my first post. No assuming here!






So know what your clients want....Call and discuss, and actually sit down and read the back of the 1004 and 2055.

 

[Mike Garrett RAA]

Well done NC!

 

[Mike Kennedy]

Good Post NC.................this paragraph should be read .....slowly.......and twice by the OP ...........

Scope of Work

The appraiser must be able to obtain adequate information about the physical characteristics (including, but not limited to, condition, room count, gross living area, etc.) of the subject property from the exterior-only inspection and reliable public and/or private sources to perform this appraisal. The appraiser should use the same type of data sources that he or she uses for comparable sales such as, but not limited to, multiple listing services, tax and assessment records, prior inspections, appraisal files, information provided by the property owner, etc.

:icon_idea: Suggest OP also refer to the USPAP SOW Rule.........including Comments regarding Assignment Conditions / Restrictions which place a limit on data gathering with specific emphasis on Subject's Characteristics including....INTERIOR AND AMENITY Condition.



p.s. this line is for Mentor :.............wutts a Drive-by ?? :new_smile-l::icon_mrgreen:

 

[DMZwerg]

p.s. this line is for Mentor :.............wutts a Drive-by ?? :new_smile-l::icon_mrgreen:

Aw, but I like answering that one!

A Drive-By is where you take multiple shots and angles of the subject, by use of a multi shot camera, while traveling by at 30mph-90mph and not slowing down.

:icon_mrgreen:

 

[JSmith43]

Mike K, you deserve to be able to express your point of view. I'm taking the night off-no resistance here....tonight.