Occupancy Status

[Lisa Archilla]

Hi Everyone,

I was taught that on a 1004 the occupancy status ( owner, tenant, or vacant) is the current (present) status at at the time of inspection not the intended status, even if the appraisal is for an investment purchase.

However, I did an appraisal for a PURCHASE and the mortgage broker called me and told me to change the status to TENANT occupied because the buyer is going to use it for INVESTMENT purposes. Therefore, from my understanding they wanted me to mark it as the INTENDED occupancy status and not the current which I was told was owner (seller occupied).

At the time of the inspection I spoke to seller (maybe it was really the tenant) who appeared to be living there with his entire family of 6.

The only other thing I can think of is this...
that the buyer, realtor and mortgage broker lied to me initially about the property being an owner occupancy purchase when it really was going to be for an investment. And that the mortgage broker did not want to admit to me that he lied. Moreover, that the people that were living in the house (at the time of inspection )are really the tenants and not the seller/owner (as I was told and introduced to when I got there)

So....
Is the occupancy status on a purchase, the intended status or the current status for owner, tenant or vacant????

Thanks everyone.

 

[Chris Colston]

Originally posted by Lisa Archilla@Feb 13 2005, 10:55 PM
So....
Is the occupancy status on a purchase, the intended status or the current status for owner, tenant or vacant????

Thanks everyone.

You are appraising the house as it is on the effective date, therefore the occupancy is at it was on the effective date, NOT what it will be. Is there a real estate agent involved? Do they know who is occupying the house? Who did you make the appointment with, was it the owner? If it's going to be an investment purchase (with a rent comp schedule and operating income schedule) you can explain that part in your analysis of the current sale/listing.

 

[Lee Lansford]

Report the occupany status as of the effective date.

I've had two recent requests--very similar to yours--to change the occupancy status. In neither instance was the reported occupancy (as of the effective date) changed in the appraisal.

Now let's ask ourselves: WHY would it be necessary to change the reported occupancy status as of the effective date? IF all parties are aware that as of the effective date the subject was, say, "vacant" or "owner-occupied" and some time subsequent to the effective date it is to become tenant-occupied, what difference might it make as to the "occupancy" as of the effective date? Well, the easy answer is that it SHOULD NOT make any difference! It should not make any difference, that is, unless SOMEONE is trying to pull the proverbial wool over someone's eyes!

 

[Liz Mura]

The occupancy box checked should be the status at the time of inspection. If it was to indicate the future intended use of the buyer, why would they have "Vacant" on the form at all? Who buys a home intending for it to be vacant???

 

[airphoto]

Fantastic! Excellent reasoning Liz!

 

[Mike Garrett RAA]

Also...if the property is going to be purchased as an investment property you will need to do an income and expense analysis and comp rent schedule. Sounds like the L/O hasn't a clue!