Question for VA Appraisers

[EDWARD BERRY]

i think the question was about VA reqmts.

it could be gold plated, but if an did not meet VA reqmts, it would have to be done before closing.

Screens have always been a "iffy". If it is in a warm area and does not have ac, then screens would be health issue.

How was the contract written with respect to repairs?

Seller, buyer, or agent could furnish screens.

But that's life. Could write a book about such.

 

[Don Clark]

So a house with granite counters vs. old laminate counters, and new windows vs. old single pane, and new SS appliances vs. old white ones would not be worth more? In my market all of these items add value. May not add as much as they cost to install, but most all buyers are going to be willing to pay more for a house that has these features.

And of course you inspect all the comparables sales that you use in your report, right? And list the brand names of all the appliances in those comps, right? And, you note the type of material of the counter tops in all thiose comps, right? And, last but not least, you measure all the sales/comps, right?

If you do not do the above, then how can you make a judgement and render an opinion on the difference in quality or value of the subject as opposed to the comparable sales that you adjust?

In my opinion, only the difference in market value expressed in the sales price in a paired sales analysis should be the basis for an adjustment. If you have a better way of making adjustments, or have a copy of the secret book of adjustments, please advise.

 

[Mike Garrett RAA]

Screens, in my opinion, need to be in average condition, that is, serviceable with no holes, rips, or tears. That said, they are not required. Neither are gutters and down spouts but if they are there they should be in working condition.

To the issue of whether upgrades add value. Of course they do; however, what ones and how much are subjective. Most appraisers do take them into consideration and adjust accordingly. An appraiser needs to be able to "prove" their adjustments when questioned. For that reason, many of us are cautious about what we do adjust.

I am currently working on a VA appraisal on a property that has no chance of meeting minimum property standards. It should have never been offered with VA or FHA financing as the foundation is badly damaged. The agent's comment was..."well, it's like other houses in the area!". Yep, and those won't qualify for government insured or guaranteed loans either.

Anyone else noticing a surge in VA appraisal requests? Got 4 assignments in the last two days. I thought it was slowing down and then...bingo!

 

[Mr Rex]

Them's some right nice stainless steel personal property appliances you have there ma'am.

 

[Don Clark]

Them's some right nice stainless steel personal property appliances you have there ma'am.

Ah! Mr Rex, you do understand.

 

[Don Clark]

Screens, in my opinion, need to be in average condition, that is, serviceable with no holes, rips, or tears. That said, they are not required. Neither are gutters and down spouts but if they are there they should be in working condition.

To the issue of whether upgrades add value. Of course they do; however, what ones and how much are subjective. Most appraisers do take them into consideration and adjust accordingly. An appraiser needs to be able to "prove" their adjustments when questioned. For that reason, many of us are cautious about what we do adjust.

I am currently working on a VA appraisal on a property that has no chance of meeting minimum property standards. It should have never been offered with VA or FHA financing as the foundation is badly damaged. The agent's comment was..."well, it's like other houses in the area!". Yep, and those won't qualify for government insured or guaranteed loans either.

Anyone else noticing a surge in VA appraisal requests? Got 4 assignments in the last two days. I thought it was slowing down and then...bingo!

Mike,

VA request have been like an elevator, up then down. Liquidations are getting harder and harder to do as the Lender contact will not answer the phone or e-mails. Also, getting hard to collect on all VA's.

 

[incognito]

The OP is in Louisiana. I am not sure what region that is in. HOWEVER, in Florida (SE Region), screens ARE required on all windows which are in the living area, and are not protected by a screened porch. It is a safety/sanitary issue, to prevent insects and pests from entering in a house which, in all likelihood, will spend a fair portion of it's time with open windows.

Per Richard Welch, recently retired VA Chief Valuation Officer, screens are required in this region. I call for them all the time, and around these parts, it is understood my most SAR's as being a requirement. It is when the mortgage company is from up north or out west where the SAR's do not know the local requirements where the fun begins.

I do not have this in writing, and it does not exist in writing. It came from a VA training meeting about 10 years ago, and has bee re-affirmed by him several times at subsequent meetings.

Home Depot sells screening kits for about $10 per window, FWIW...

So, I believe the answer is YES, if you are in the SE region.

 

[Non Sequitur]

As a VA appraiser in the Roanoke Region I will speak only to what I would do, first in regards to screeb:

And speak you did, see below.

2. Most important of all, a VA appraiser CANNOT REQUIRE a repair. Any item that is listed as a needed repair is subject to the SAR/Underwriter requiring it. If the SAR wants to they can waive the repair.

But this one did, the report is "Subject to", whether or not the SAR can or will waive anything is at best an academic exercise.

Now, as to the level of detail in a report. The VA appraiser has one job, to make sure that a property meets VA MPR's.......that's it.

Since I'm not a VA God, I guess I'll take your word for it. But here's the rub, why use the Fannie 1004? Are Gods not subject to the pre-printed SOW and certs?

If the appraiser has generally stated the condition of the subject in overall terms, and states that it meets VA MPR's then he/she has done their job.

So "Beautifully Renovated" adequately desribes a structure that has been stripped to the studs and rebuilt? I'll take your word for it and guess that's in the VA handbook.

Hell, the appraiser may have not known or been advised of the level of work/rehab that had been doen, and even if they had, many of the things you list are marketing issues not affecting the appraisal.

For the regular folk, the Mortals, that's what we get paid for.

Who care what brand the appliance are?

Buyers and sellers, or as the appraisal Mortals call them: The Market.

And, what added value are any of the things you mention such as granite counter tops?

Apparently none in your market, in my market buyers pay more for nice things.

The appraiser does not investigate the HVAC beyond seeing that it works and is adequate for it's intended purpose. Energy star windows? What added value are they beyond a similar insulated window? Windows have an R factor of about 3 regardless of what brand they are.

Again back to that pesky Fannie form the VA Gods are required to use, specifically page 1, Improvements:Additional Features (special energy efficient items, etc.). But I do agree with you in that they may or may not draw a market reaction, but to ignore them when the form specifically asks the question is an unacceptable practice.

Many time I am giving a list of things a property owner has done. Maybe 1 or 2 items will have an added value. The rest are personal preferrence items that the market, if it reacts at all, sure as hell won't pay what it cost.

Well at least you finally admit there may be a market reaction, but who mentioned anything about cost?

And, if the property is so wonderful as you have described, and so superior to others in the market, why was it necessary to discount it $10k?

Competition. In parts of my market neary all properties were stripped to the studs because of Hurricane Katrina. Some properties were over priced, and considering the $10K "discount" (as you call it) is roughly a 2% adjustment, I think the seller and buyer did well coming together on a price. And not once did I say or imply the VA appraiser's opinion of value was off.

I can tell you why. The Market plainly has spoken and has said, we don't give a hoot about all the wonderful things you think you have done to the property.

Considering this sale, if it is salvaged, will be the top sale in the past 6 months, the market did speak: Top of the line renovations bring top dollar.

If you want to write a book about a property every time you do an appraisal, then fine, do so. But don't knock those who understand the difference between a Summary Appraisal Report and one written in a narraitve format or sekf contained format.

Pure hyperbole. Expecting any appraiser to adequately describe the subject isn't asking for a book. If an appraiser doesn't like describing properties, markets, adjustments, etc. get a new job or at least don't cry when someone call's you out. And I wish you wouldn't knock those who understand that "Beautifully renovated" doesn't describe a property that was striped to its studs.

I say again, it is amazing how many critics of VA reports there are by people who have no idea what VA requirements are, and what a SOW for such a report would be.

You're acting like I kicked a puppy. But go ahead and defend and excuse. VA still requires the use of the Fannie forms and I seriously doubt they allow their panel appraisers to ignore common sense and standard good practices.

 

[Mike Garrett RAA]

Talking about "kicking a puppy!".

Might I suggest describing is not a requirement of a Summary Appraisal Report (Form 1004) summarizing is.

 

[Non Sequitur]

Might I suggest describing is not a requirement of a Summary Appraisal Report (Form 1004) summarizing is.

Might I suggest VA appraisers or anyone else signing the Fannie 1004 have to adequately described the subject.

So "Beautifully renovated" is an acceptable summarization of a property that was stripped to its studs and rebuilt?

I guess I'm wrong considering two USPAP instructors have now defended "Beautifully renovated", never mind that its subjective and amateur.

Edit: Another suggestion. Anyone thinking "Summary" Report means a sentence or two about any subject in the report should look up the definition of summary.