Records state Mobile/MFG and was appraised as site built SFR

[Michael Schendel]

I was asked to do a field review for a client last week. I do quite a few, so I accept it as I would any other.

I pulled tax records and it states the property should be Mobile/MFG but the appraiser appraised the property as a site built SFR. I went over the report again to make sure I did not miss the comment for the discrepancy. There was no comment stating why tax records had mobile/mfg and they were appraising site built.

I called the county to find out what was going on. They told me there was one permit on file for the APN used in the appraisal. The permit states the owner was converting the garage (already existing) into SFR. The appraisal said the house built is new construction with a year built of 2006. I don't know how long the garage was there for, there was no permit for it to be built. I obtained a copy of the permit. It states at the bottom of the permit, "no permit or inspection was done, the property appears to comply with local code."

I could only drop my jaw as this was not stated in the original appraisal.

I called the lender who asked me to do the review to let them know my scope of wrok might need to change based on all relevant data and asked if they had insight to what was going on with this property. The lender explained to me the original structure had burned up in a fire and they took the insurance money and converted the garage to a house.

Again, I could only drop my jaw in disbelief as none of this was explained in the original appraisal.

Am I just crazy for thinking all of this needed to be explained in the report?

I thought it is an appraisers job to clearly state in the appraisal all pertinent information regarding the subject property to allow the lender to make a mortgage financing decision.

Any feed back to this would be greatly appreciated.

Thanks!

 

[Jo Ann Meyer Stratton]

The county assessor's records are two to three years old. Improvements taxed on the 2005 tax roll are based on information obtained prior to 09-15-2004. Therefore, the manufactured/mobile home could have burned down 09-16-2004 (or even further back in time depending on when the last field appraiser for the assessor's office was at that site) and the garage converted to a single family residence since that last visit by the assessor's office. Yes, the original appraisal should have explained that situation. Every appraisal should be written as if it will be reviewed by someone 2000 miles away with only on line data to used as a cross check. Anything that is different should be explained in an appraisal report. Or else--there is a situation like you have encountered.

 

[hastalavista]

Michael-

You are not crazy; although a report like this could drive one nuts.

What could have been dealt with cleanly and clearly in the original report is ignored; substantial and significant facts regarding the subject (in my book).
Your client and the originator appraiser are lucky; had you not done the level of research you did (that should have been done and documented in the original report), the loan process could have been slowed or stopped altogether.

BTW, I salute you for level of research you completed on this. Not all reviewers would do so, and not all review SOWs/client engagements require that it be done.

 

[Tony Blackburn]

M-

I think an argument can be made that the appraiser assumed the subject was legal and permitted. We do that every day when we do appraisals or reviews on existing properties.

BUT

One of the most common problems in doing reviews, and I'm sure everyone will agree, is that appraises fail to disclose discrepancies in public record data sources, or MLS systems and then, as a result, fail to reconcile the differences between what was physically on the site and what other sources say.

That's not to say that public record databases or MLS systems are always correct and up to date, but, the appraiser is obligated to reconcile this information and go through the propert aprpaisal processes from there.

Yes, I'm preaching to the choir.....