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Occupancy Marked?

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Andrew85251

Freshman Member
Joined
Apr 7, 2007
Professional Status
Certified Residential Appraiser
State
Arizona
Just got a call from my lovely AMC. Here's the situation. I received the purchase order for 1004 with a rent scheduled and income statement was ordered as the prospective buyer is buying the house as an investment property. However, at the time of the inspection the house was occupied as a Primary Residence.

From how I have always known, irregardless of the intended use of the report per the occupancy status down the road, the report should be marked as the current state at which the house was occupied at the time of the inspection which was Owner Occupied.

The management company is all up in arms saying the report should be market tenant occupied. The regional manager for the AMC just called and said the new forms did away with this compliancy and they are to be marked how the occupant will be using the house down the road in a purchase transaction.

PLEASE HELP!
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
I would mark the tenant occupied box with an asterisk * and explain the situation and that the client requested that it be considered tenant occupied even though it was owner occupied at the time of inspection.
 

Kevin A. Spellman

Senior Member
Joined
Aug 30, 2003
Professional Status
Certified Residential Appraiser
State
Massachusetts
I would not “X” tenant. A reader would believe the subject is occupied by a tenant. The date of the report is the authority for the occupancy, not a future event. The operating income statement will say tenant also. The AMC is wrong with this one.
 

Blueprint

Senior Member
Joined
Aug 25, 2005
Professional Status
Certified Residential Appraiser
State
Oregon
The regional manager for the AMC just called and said the new forms did away with this compliancy and they are to be marked how the occupant will be using the house down the road in a purchase transaction.

Tell them to fax over thier source of evidence on that.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
At first my mind says I would do just as Mike Boyd says. The property will be used as a rental.

BUT, does the buyer have a tenant for the property? So marking the box tenant says that there will be a tenant - which is a hypothetical situation, or maybe even an extra ordinary assumption.

I would narratively explain this in two places in the report.....once shortly on a page that cannot get "lost", and then in more detail in the addenda or additional comments section.
 

CURT VAN HOOSER

Senior Member
Joined
Nov 3, 2003
Professional Status
Licensed Appraiser
State
California
I would mark the tenant occupied box with an asterisk * and explain the situation and that the client requested that it be considered tenant occupied even though it was owner occupied at the time of inspection.

This is probably the way I would handle it as well.
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
Don't change the occupancy. If the owner was occupying the home it's primary. If the lender wants a 1007 and 216 for what it will be then that's their prerogative. Yours is to report the subject as it is.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
:rof:The owner was occupying the property, but it's not owner occupied?:unsure: I guess he provided them evidence of the owner paying himself rent. I'm glad I'm crazy or this sh!#, err stuff, would drive me to insanity.:Eyecrazy:
 

Bama Bayou

Senior Member
Joined
Oct 19, 2006
Professional Status
Certified General Appraiser
State
Alabama
We are not the occupancy police. It is for the lender to determine the intended occupancy. In this case I would just mark tenant with an explanation that the client has informed you that it is intended to be rented out by the purchaser.
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
Gonna keep getting dumber & dumber request before it gets better. May want to consider these as part of doing business when you price the assignment.
 
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