Question for VA Appraisers

[Joyce Potts]

Who cares? Screens have nothing to do with the health, safety or structural integrity. What's the value look like? Screens are incidental to the overall value for the most part.

 

[Bearslide]

Can't speak to the question about screens as I am not a VA appraiser. But I sure would question the lack of detail. "Beautifully renovated" doesn't explain a thing. To use 3 pages of boilerplate and outdateded addendas strikes me as an appraiser just sloughing through the job and too lazy to spell out exactly what renovations.

I don't believe in writing a novel on a summary report, but one should provide enough detail for the reader to have a clear picture of the property and the reason for selection of comparables and subsequent adjustments. With the markets slow, it is necessary to add more detail to explain neighborhood, improvements and lack of sales.

 

[Don Clark]

No you didn't. You pointed out what a Summary Report is according to USPAP. USPAP doesn't define the word summary or summarize. I can only speculate but I would bet it's because most people know the meaning and the ASB had no reason to re-define the word. Is there another? Post a cite.Again, post a cite where USPAP defines the word summary or summarize and what is expected in the context of USPAP. If you think "Beautifully renovated" as a stand alone description is an adequate summarization of any property than come out and say it. Take a stand, I am.I stayed on point.Does it pay more than a USPAP Instrucor?
I didn't offer any USPAP examples. But you offer, again and again, reasons why USPAP has to be constantly revised and why Q&As are a monthly treat for everyone.

I believe USPAP and the AO's give a good indication of what they want in a Summary Appraisal Report, as I noted in a previouse post, see below:


I have. A good example is SR-2, (b)

For the most part USPAP uses the word STATE ecept in (b),iii,vii,and viii.

iii is Summarize information sufficient to identify the Real Estate.

vii is Summarize the Scope of Work.

viii is Summarize the information analyzed, the appraisal methods and techniques employed. and the reasoning that supports the analyses and opinion, and conclusions;exclusion of the slaes comparison approach, cost approach, or income approach must be explained.

An example of the difference between the 3 report types is found in AO-11, page A-25, lines 146 through 150. (5 lines).

In the same AO, an example of describe is on the same page, lines 121 through 143.(23 lines).

 

[Don Clark]

The appraisal should include enough information about the subject property that the intended user understands the quality and condition of the subject. Simple stating " Beautifully renovated" is not adequate given the different quality levels of materials and how much of the home was truly renovated and what level of " beautifully" was achieved. Clearly, since the reviewer could not determine the level of renovation from the appraisal comments, the appraiser fell short of what most would consider an acceptable appraisal.

Considering VA pays full fee, the no reason for the appraiser not to spend a few extra minutes on the appraisal.

What reviewer? Unluess you mean the OP, who is not a VA appraiser. VA has their SAR's(Staff Appraiser Reviewer) who is also the underwriter. The VA also has full time staff that routinely does review VA appraisals.

I would not disagree that some additional comments would have been appropriate. But, to go back and recapture the history of this property that was apparently damaged by Katrina, stripped to it's framework, then rehabilitated, and now has GE Monogram Appliances seems a little much to me. The appraiser is doing an appraisal of the subject property in it's current, not past condition, to verify whether or not it meets VA MPR's. I also agree that the VA appraiser should take out some of the now meaningless forms such as the FIRREA form and am surprised that his/her region has not said something about that. But again, I have not seen the report so am just going on the word of the OP.

 

[Non Sequitur]

I believe USPAP and the AO's give a good indication of what they want in a Summary Appraisal Report, as I noted in a previouse post, see below:

I agree. USPAP defines what should be in a Summary Appraisal Report.

I have. A good example is SR-2, (b)

For the most part USPAP uses the word STATE ecept in (b),iii,vii,and viii.

iii is Summarize information sufficient to identify the Real Estate.

vii is Summarize the Scope of Work.

viii is Summarize the information analyzed, the appraisal methods and techniques employed. and the reasoning that supports the analyses and opinion, and conclusions;exclusion of the slaes comparison approach, cost approach, or income approach must be explained.

An example of the difference between the 3 report types is found in AO-11, page A-25, lines 146 through 150. (5 lines).

In the same AO, an example of describe is on the same page, lines 121 through 143.(23 lines).

Again my point is Summarize isn't defined by the ASB because they didn't intend for it to mean anything other than the common use. They did describe what they expect to be in a Report, and that is to summarize (To give a recapitulation of the salient facts) the info necessary to identify the subject, summarize the SOW, the info analyzed, the appraisal methods and techniques employed, etc.

But, to go back and recapture the history of this property that was apparently damaged by Katrina, stripped to it's framework, then rehabilitated, and now has GE Monogram Appliances seems a little much to me. The appraiser is doing an appraisal of the subject property in it's current, not past condition, to verify whether or not it meets VA MPR's.

But here's the rub Don. IMO the appraiser should describe what was done to the property because it speaks directly to its present condition. A flood damaged property that wasn't stripped to its studs isn't in the same condition as one that was.

And you keep on insisting that high end appliances have no market value, that's just plain wrong. There is no way two properties that are identical, except one has a base model kitchen with Magic Chef appliances, laminate countertops, etc. and the other has Monogram appliances, granite countertops, etc. will bring the same money. I'm not sure how anyone else would explain the adjustment but I would (and do) write up a brief description just as in this thread and there isn't a UW or anyone else that will (or has) questioned the method.

I also agree that the VA appraiser should take out some of the now meaningless forms such as the FIRREA form and am surprised that his/her region has not said something about that. But again, I have not seen the report so am just going on the word of the OP.

Fair enough.

Don I have no doubt you are a respected peer for good reason, so if you PM me with your info I will fax you a copy of the report after I redact info that can identify the property and appraiser. I will be out for most of the day so I'll check my e-mails when I get back.

 

[Don Clark]

I agree. USPAP defines what should be in a Summary Appraisal Report.

Again my point is Summarize isn't defined by the ASB because they didn't intend for it to mean anything other than the common use. They did describe what they expect to be in a Report, and that is to summarize (To give a recapitulation of the salient facts) the info necessary to identify the subject, summarize the SOW, the info analyzed, the appraisal methods and techniques employed, etc.
But here's the rub Don. IMO the appraiser should describe what was done to the property because it speaks directly to its present condition. A flood damaged property that wasn't stripped to its studs isn't in the same condition as one that was.

And you keep on insisting that high end appliances have no market value, that's just plain wrong. There is no way two properties that are identical, except one has a base model kitchen with Magic Chef appliances, laminate countertops, etc. and the other has Monogram appliances, granite countertops, etc. will bring the same money. I'm not sure how anyone else would explain the adjustment but I would (and do) write up a brief description just as in this thread and there isn't a UW or anyone else that will (or has) questioned the method.

Fair enough.

Don I have no doubt you are a respected peer for good reason, so if you PM me with your info I will fax you a copy of the report after I redact info that can identify the property and appraiser. I will be out for most of the day so I'll check my e-mails when I get back.

I have done better than that. I have given you my e-mail address. But, I will also include my Fax number in case it is not in an e-mail format.

 

[incognito]

Who cares? Screens have nothing to do with the health, safety or structural integrity. What's the value look like? Screens are incidental to the overall value for the most part.

This thread has gotten so far off track that it seems to be overlooked that I answered the screen question, definitively, way back on post #17...

IN THE SOUTHEAST REGION, SCREENS ARE REQUIRED BY VA!!

I don't care if they are beautiful screens, new screens, old screens, renovated screens, whether the screens description has been stated, summarized or described, just that

IN THE SOUTHEAST REGION, SCREENS ARE REQUIRED BY VA!!

The contributory value, cost, quality, color, and all else is not salient. It is an MPR requirement. There is a SE Region VA training meeting today in St. Petersburg. I will ask, again.

Beautiful, isn't it?

 

[David Beasley]

Either way I'm turning down the assignment. I'm not on the VA panel and I don't want that to be an issue. I just couldn't believe screens were a VA repair item.

Getting back to this issue and away from the "description" and USPAP arguments...A requirement for screens from the VA will vary from region to region. Had you taken the assignment, my recommendation would be to call the RLC that is in oversight of the area and ask them directly. Actually, I'd recommend calling three times - talk to different people - and go with the answer that you get twice. If you get 3 different answers, you have to repeat the process until there is a concensus.

Read the last part above again...and then you will realize why it is that every VA appraiser here has a different opinion on the matter (Yes/No/Always/Never). IMO, screens are not required on VA appraisal subjects unless the subject does not have A/C of any sort...then the screening provides a minimum insect barrier for the warm months when the windows are likely to be up. I've never called for a screen repair on a VA appraisal - then again - I've never done a VA appraisal on a home that didn't have some sort of A/C...but it is still best to have such questions answered by the RLC in oversight - then you have done your diligence in the matter. Take the St Petersburg Region (as noted above - I cannot call it the SE Region since I live and work in the SE and do not answer to them) - they apparently require screens. Atlanta Region does not - and if they do - they're 11 years behind on telling me that I've been submitting erroneous reports the whole time.

 

[incognito]

My error. You are correct, it is not the SE Region. It is the Regional office in St. Petersburg, which I am SURE covers Florida, Puerto Rico, Alabama and Mississippi. There may very well be other states as well, but I'm not sure...

If the OP is not on the VA panel, I wonder how he got the assignment? Someone screwed up somewhere! Was it on an 1805?

 

[CCAAMO]

What reviewer? Unluess you mean the OP, who is not a VA appraiser. VA has their SAR's(Staff Appraiser Reviewer) who is also the underwriter. The VA also has full time staff that routinely does review VA appraisals.

I would not disagree that some additional comments would have been appropriate. But, to go back and recapture the history of this property that was apparently damaged by Katrina, stripped to it's framework, then rehabilitated, and now has GE Monogram Appliances seems a little much to me. The appraiser is doing an appraisal of the subject property in it's current, not past condition, to verify whether or not it meets VA MPR's. I also agree that the VA appraiser should take out some of the now meaningless forms such as the FIRREA form and am surprised that his/her region has not said something about that. But again, I have not seen the report so am just going on the word of the OP.[/quote

Nobody said the appraiser should describe the prior condition of the subject. The comments refer to the lack of comments and clarity as to the current condition of the property. If the kitchen and baths were remodeled, the appraiser should indicate what was done. Someone might think some new appliances and new coat of paint is a kitchen remodel and possible a " beautiful remodel" at that. It's not hard to say new cabinets, granite slab counter tops etc. The comments should be adequate enough for the reader to determine the quality of the improvements be they new or old.