• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Lender Expects Me To Qualify Their Investment?

Status
Not open for further replies.

Terraform

Senior Member
Joined
Aug 29, 2006
Professional Status
Certified Residential Appraiser
State
Florida
Based on the appraiser's UAD condition rating, my client will or will not lend on a specific property. I thought our job was to develop an opinion of value?
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
And why do you care if they lend or not lend on the property if you are developing an opinion of market value, which includes an opinion of the the condition?
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Our job is to develop and provide an opinion of value. A lender may reject a loan due to property condition, whether UAD is used to describe the condition or not.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
OPs rant is an epic fail since UAD has nothing to do with lenders refusing to loan on property in poor condition.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Based on the appraiser's UAD condition rating, my client will or will not lend on a specific property. I thought our job was to develop an opinion of value?

Our job is not "just" to provide an opinion of value, our job in an appraisal is also to describe the property and its condition as well as any known facts about the property. A lender can reject a property for any number of reasons that are seen in an appraisal report, such as in a condo there are too many investors or renters. This is one of the reasons we are still in demand, since an AVM or other program can spit out a value estimate in seconds.

Yes the lender expects you to qualify their investment- or what did you think you were doing all these years? We are not responsible for their decision whether to accept or reject a property. We provide information about a property in the appraisal, including a value opinion, which they use to evaluate the property for their decision. Sometimes their decision to lend is made contingent on a condition, such as repair .

INTENDED USE: The intended use of this appraisal report is for the lender/client to evaluate the property that is the subject of this appraisal for a mortgage finance transaction
 
Last edited:

Tom4value

Senior Member
Joined
Dec 4, 2016
Professional Status
Certified Residential Appraiser
State
Massachusetts
If the property, in your opinion, is indeed a C5, you are providing an opinion of value of a C5 property. You did the job you were hired to do. The fact that lenders will not lend on a C5 does not change that. You save your client from doing a bad loan. They got their money’s worth.
 

Obsolescent

Senior Member
Joined
Jul 6, 2004
Professional Status
Certified Residential Appraiser
State
Minnesota
Based on the appraiser's UAD condition rating, my client will or will not lend on a specific property. I thought our job was to develop an opinion of value?

Your job is to provide an opinion of value. The final value opinion is based on many factors including the market's reaction to the condition of the home. Whether the lender/client lends on the home based on your appraisal is none of your business.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
Is it really a C-5 or can it be brought up to a C-4 with repairs-with you making the appraisal "subject" to the owners making those repairs ?
 

TRESinc

Elite Member
Joined
Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
last i checked lenders can lend on anything they want, be it a C1 or a C6. FNMA won't buy a loan on a C6 property but that doesn't stop a lender from having the ability to lend money...
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Ok, so in regards to 'qualifying their investments', wife had a home purchase. Had a large front window, obvious leaks around it at one time or another, Sheetrock had the usual bulges and ripples you get from moisture penetration. Home was a C3 otherwise. Did not appear major, comment and moved on.

Lender comes back and wants to know if it was a 'health and safety issue'. Now here is the thing. We were not given an inspection report, water penetration report, or any other third party documentation. Further, under Florida Law, to make such a call can put the appraiser under the law and regulation of a home inspector.

The point is, we are often limited by other laws and regulations as to what we can say in a report, and leders often want appraisers to go above and beyond. I suggest that appraisers be very aware of these conflicting regulations before they make definitive statements rather than recommending other professional inspections, etc.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks