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Long addendums

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David Bodtcher

Junior Member
Joined
Oct 18, 2002
Professional Status
Appraiser Trainee
State
Utah
Just curious, does anyone else have 3 & 4 page addendums for each appraisal?
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
David ~

Gods NO!

For why. The more you write, the more sure the reader can be that you too do not understand what's been written.

If you can't say it in 100 words or less per issue, it needs to be rewritten.

My advice forever, to all, to be a really good writer (appraisal-wise or otherwise) is to write exactly what you mean with slang words, mispellings and all in a dfraft. Get it all out in a hurry. Then rewrite it as many times you want to make it read and make sense. Being coy counts for minus naught!!

If you're couching in the passive voice, you're writing gibberish. Clarity is the only value appreciated. 'If you don't understand the issue, you ought to hire a good appraiser to write it for you.'

Of course, this is easier said than done, at first. After you've rewritten 300 words and are now down to 100, you've got the sucker memorized, so reading it to yourself is nigh onto impossible!
 

Charlotte Dixon

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
No. It's my opinion that long addendums are for appraisers who like to fan their egos, i.e. show and tell what they've learned and how smart they are at the expense of the reader. A Summary Appraisal Report is just that, a summary.

Having said that, I certainly think any questionable adjustment or remark out of the ordinary should be explained; but I can usually fit that in the "comments of Sales Comparison" area. I'd say, in one out of every five appraisals I do there is a short addendum.....usually "Subject to" items in new construction reports, liquidation appraisal comments, or an explanation regarding dryvit exteriors, when applicable.

My Firea/USPAP Addendum is in every report and is filled with most everything I need to say. That includes the inspection process (what I do and don't do) exposure/marketing time, purpose/scope, intended use/user, USPAP compliance and a large area for additional comments such as private well/septic explanations, environmental hazzards, etc.

When I started appraising in 1988 I was under the misconception that "More was Better" until a lender called and said

"What do you do? Charge by the Pound"....?

But here I am, answering a Yes/No question with a long explanation
:lol:
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
We had standard addendums to talk about the low density market, source of data etc. until I took the class on Limiting Your Liability as an Appraiser.

Now we have incorporated many of the suggestions from that class into the report and our addenda have grown. This makes the report several more pages long but I certainly have a lot more confidence that what I am saying in the report will not be misconstrued by the reader.

This is solid, real info for the reader on what I did and did not do. It is not Fluff.

Example:

Subjects Heating: ANY REFERENCE TO THE HEATING UNIT CONDITION REFERS ONLY TO THE EXTERIOR APPEARANCE OF THE UNIT AND IS NOT A STATEMENT OF THE OPERATING AND PHYSICAL CONDITON OF THE HEATING UNIT. THE APPRAISER IS NOT QUALIFIED TO MAKE SUCH JUDGEMENTS AND, THEREFORE, SUCH JUDGEMENTS OF ANY HEATING OR AIR CONDITIONING SYSTEMS ARE BEYOND THE SCOPE OF THE APPRAISAL.
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
...."3 to 4 page addendums for EACH report" ?........absolutely NOT ! A wise man once said..."We are not selling these reports by the pound " ! Does the occasional assignment come along with a property worthy of extra commentary, requiring one to go beyond the given field-space of the form, ....of course. Choose the right words and do not use any with double-meanings. Synonyms can be your good friends if one is trying to save form space, and some are better and shorter than others. Eliminating "the", "an", and "a" can do amazing things to free up space within the text-field sections of a form so one does not carry over to an addendum.
 

Randy Beigh

Senior Member
Joined
Jan 16, 2002
David

This could well go into the area of the purpose of the appraisal and the complexity of the property. Further, I assume you are asking about residential as opposed to commercial.

The lenders are just as backed up as we are. They don't have the time or desire to read all that stuff. How many times have you had an underwriter call and ask you something when it was in the report, already.

So, the answer to your question is no. Keep it short and sweet. Nobody needs all that excess paper.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
That you were just "keeping it short and sweet for the overworked UW" will not be an acceptable defense if you are involved in a legal dispute.

Where in USPAP is size of the report a consideration? If anything, we are encouraged to make comments and clarifications.

If the UW's are backed up and not able to read the report, that is their problem and not ours. We are charged with writing reports that are clear and unambiguous. If it takes 5 additional pages to say exactly what we mean, then so be it. The solution is to hire more UW's; not decrease the quality of the report.

Brevity yes; ambiguity no.
 

Randy Beigh

Senior Member
Joined
Jan 16, 2002
Richard

I agree, but I thought I covered that in my first paragraph. If the property requires additional comments, so be it, but to be writing to just to make a long report is a waste of time and as someone else said in this thread tends to make the report look bloated.

Worse yet, locally, we have a fraudulent appraisal firm that writes 3-4 pages of templated BS on every report. The report looks very thorough, but the revew takes much longer, because there is so much nonsense to weed through. And all of it is to cover up the fact that the report isn't worth the paper it is written.

Like I said it depends on the purpose of the report, but most lenders need the appraisal to make a business decision, so keep it short and sweet.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
I dont disagree with adding addendums, as long as you reference the addendum somewher ein a non-dispoable part of the report. LO's have been Known to strip out important addendum for obvious reasons.

PAUL BOURGET:"... Life can never be entirely dull to an American. When he has nothing else to do he can always spend a few years trying to discover who his grandfather was..."

TWAIN: "...Right, your Excellency. But I reckon a Frenchman's got a little standby for a dull time too; he can turn in and see if he can find out who his father was. ..."

Mark Twain, US writer
 
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