Private Appraisal Order - What is the correct form?

[monkey525]

Well the person that ordered the request said he needs a market value of the subject, to show the lender what these types of homes are selling for in this market. The new 1004 specifically states "Mortgage finance transaction" and since the purpose is not for a mortgage finance transaction but to present to the lender what this house should be listed for, I believe the GPAR or the old form may make more sense..

 

[Tony V]

What do you mean AI form? Another form used for private type apppraisals..(I know Dave has a serious love affair with it)

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(Sounds like you are trying to convince yourself of that...Ask yourself what the scope of work for this assignment is, who is the client, what is the intended use of the report and who are the intended users ), 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.)(and so have I...know what?? It don't mean that they are right..in fact, they open themselves up to more nonsense and issues this way.)

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:

Quick question for you...are you planning on including the cost approach??

 

[The Argus]

I always use a GP form for this type of assignment. I never use a 1004 (new or old) for not lender work. Good luck with the assignment, sounds like you might want to hammer out the details of your SOW before you move forward though.

 

[Webbed Feet]

Well the person that ordered the request said he needs a market value of the subject, to show the lender what these types of homes are selling for in this market. <....snip.....>..

I believe you've not thought this through. Nor has your client. It will be too bad for you if you end up caught in the cross fire if and when you become aware that the onus for developing a proper SOW is on your back, not your client's back.

 

[The Sheriff]

Monkey525... Are you recently licensed? Not because you have questions about which form to use, but the entire comment regarding, 'am I suppose to use short sale comps' comment.

I know we sometimes throw incoherent thoughts on the message board here, but please give yourself plenty of time to complete this assignment and don't be afraid to network with other appraisers in your area. I WOULD highly recommend it!

On the form, to get back on topic... I prefer the GPAR. It most resembles the URAR (which most agents have some familiarity with). I have read the AI form front and back and have received some feedback from an appraiser in my area who I consider the Yoda of our profession who recommends using it (he assisted with putting the AI form together), however, I don't find it as user friendly. Just my two cents.

 

[JSmith43]

Most of these guys trying to help would help you out. Something isn't right here. Call one of us during the day. 2 minutes of real time talk & it will be straightened out.

Sincerely.

 

[monkey525]

Quick question for you...are you planning on including the cost approach??

I'm not planning on completing the cost approach. Should I?

Yes, I'm a :new_newbie:. My previous mentor used the new 1004 form to do the private appraisal but my appraisal teacher had informed me (back when I was taking classes) that I should use the old form.

I asked couple appraisers I know regarding this topic and one guy told me just use the new one/explain and another guy advised that I use the old form. Nobody told me about the GPAR form. Now you know why I posted on AF for your expert opinions?

 

[Tony V]

I'm not planning on completing the cost approach. Should I?

Yes, I'm a :new_newbie:. My previous mentor used the new 1004 form to do the private appraisal but my appraisal teacher had informed me (back when I was taking classes) that I should use the old form.

I asked couple appraisers I know regarding this topic and one guy told me just use the new one/explain and another guy advised that I use the old form. Nobody told me about the GPAR form. Now you know why I posted on AF for your expert opinions?

Not unless you feel that it has some beaing on the report....I normally do not include it on private appraisals...
I did some work for an old timer who did the same thing....he insisted that I use the New form...his reasning was that if the client wanted to take it to a lender, he could use it to get a loan...that opened up another ""can of worms"" when I brought up the Scope of Work, intended usage, intended user package....

 

[Terrel L. Shields]

Would be a nice learning experience to do it as a narrative and sharpen your skills with that methodology. Just a suggestion.

Of course, the "easy" way is to use some sort of form and the Gen Purpose form is one. With clickforms they also have a long form similar to a URAR which they call the non-lender form (non-secondary market lender that is) and there is a General cert page that goes with it. We use it and don't use the AI forms ever.

 

[The Argus]

The following words are printed on the "new" 1004 form (and they are kind of important words):

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.

I know some other appraisers do use the "new" 1004 for non lending assignments. When they are asked to read the above words to the judge in a courtroom, and the intended use is NOT for a mortgage finance transaction, it does them no favors when it comes to credibility.

IMO, your best bet is to use the GP form. As far as the Cost Approach goes, you are the one who needs to determine whether or not it is apporpriate for the assignment at hand.

I second the suggestion that you find another appraiser in your area who might be able to give you a hand with this one.