Private Appraisal Order - What is the correct form?

[monkey525]

I received a private appraisal order by an agent and the purpose of the assignment is to find out the subject's market value. This property is a short sale but is active and listed for a higher price than it should (and it's not selling, according to the agent) so this appraisal will be shown to the lender to prove that it should be listed for less than what it is now.

I was told that this appraisal should be done on the old URAR 1004 form since it's not for a mortgage transaction. Another person told me it really doesn't matter and I could do this on the new URAR 1004 form, as long as I put a statement on there that this is not for a mortgage transaction. (Keep in mind that the new 1004 form, however, already has a template within the report that I cannot change regarding mortgage transaction)

What would be the correct form to use in this scenerio? Any advice?

 

[Josh Shapiro]

GPAR General Purpose Appraisal Report

 

[Tony V]

You are correct about not using the ""new 1004""...either use the old one or the general purpose form within your software...If you have wintotal and use the old 1004 you should be able to change the statements of limiting conditions to remove items that are N/A...
Good luck...

 

[Randolph Kinney]

I received a private appraisal order by an agent and the purpose of the assignment is to find out the subject's market value. This property is a short sale but is active and listed for a higher price than it should (and it's not selling, according to the agent) so this appraisal will be shown to the lender to prove that it should be listed for less than what it is now.

My bold.

Market value - as define by who or what?

If you use all comparables that are not short sales or REO sales, is that going to be what this property will sell?

 

[Lloyd Bonafide]

You could possibly use the current 1004, since it could be argued that this appraisal is for mortgage-related purposes, but in my software, (Bradford), they have a general purpose form that is almost an exact clone of the 1004, and I would use that, (along with a general purpose certification rather than the Fannie/Freddie cert.)

 

[Rich Heyn]

All of the major software vendors have forms for non-lending assignments. Do not use the current 1004. The 1993 version of the 1004 is a poor choice as well, although some of the general-purpose forms I've seen are not much better.

 

[JSmith43]

You could opt to create a "Frankenform" report, using part of the current 1004, certifications & limiting conditions from another form, or write your own.

Any wording that remains in conflict with your stated purposes should be conspicuously corrected. If your software has a "free text" feature, make corrections in place. Otherwise, you may have to use a PDF editor on a pdf report copy for final touches.

It sounds easier to use a general form as a base, doesn't it?

 

[The Warrior Monk]

There is no "correct" form, only minimum reporting requirements. If I use a form, I prefer the AI form, since it covers all of the basics in a clear and coherent format.

 

[monkey525]

There is no "correct" form, only minimum reporting requirements. If I use a form, I prefer the AI form, since it covers all of the basics in a clear and coherent format.

What do you mean AI form?

Market Value, as in what the property will currently sell in its current condition. But now I'm thinking, am I supposed to use Short Sale comps, since this is a short sale?! m2: Yikes, a new can of worm just opened.

I was thinking the same, since the LENDER will be seeing this appraisal and arguably it is for a mortgage related purpose, I thought maybe I could use the current form and add an addendum of explanation. (I have seen other appraisers use the new form for private appraisal orders.)

Now I learn that GPAR or the old URAR form is technically the correct form to use. Thanks for the awesome advice everyone! :new_olympic1:

 

[Webbed Feet]

What do you mean AI form?

Market Value, as in what the property will currently sell in its current condition. But now I'm thinking, am I supposed to use Short Sale comps, since this is a short sale?! m2: Yikes, a new can of worm just opened.

I was thinking the same, since the LENDER will be seeing this appraisal and arguably it is for a mortgage related purpose, I thought maybe I could use the current form and add an addendum of explanation. (I have seen other appraisers use the new form for private appraisal orders.)

Now I learn that GPAR or the old URAR form is technically the correct form to use. Thanks for the awesome advice everyone! :new_olympic1:

After your question above, and based on the next two sentences, I encourage you to NOT take this assignment until you understand what value definitions are and what constitutes a mortgage related purpose and what does not.

:Eyecrazy: