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REO Addendum- As Is & As Repaired Values

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al002kim

Thread Starter
Sophomore Member
Joined
Nov 30, 2007
Professional Status
Certified Residential Appraiser
State
California
Hello everyone, I just had 2 assignments with REO addendum each, but I got flagged down because I didn't fill out all 4 values. The properties didn't required any repairs and are in good condition, so I thought that only 1 value should be fine, so I just filled out the "as is". Can someone tell me if I can put all 4 values the same or do these values need to be different? Or what's the difference between the first 2 values with the last 2 values?
I desperately need your help!! Thnks!
 

Tom Barclay

Senior Member
Joined
Apr 7, 2002
Professional Status
Retired Appraiser
State
Oregon
I think that maybe what you need here is better communication from/with your client. I would re-read the client's initial instructions(and any further instructions) and do my best to address them in an addendum. They may need you to just state what you have said here. But generally with REO's, they are looking for an "as-is", "as-repaired", "as-is" with a client imposed limited marketing time, and "as-repaired" with normal marketing times. Even if the property doesn't need any repairs, you will still have two values, one quick sale and one with normal marketing times. Just be sure to address each of the client's concerns in detail.
 
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Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
al002kim...


I think your confused at what is being ask of you.

Four value requirements are the minimums for any REO work that I have ever performed.

They typically want two AS-IS and two As-repaired(subject to).

1. Normal specific market exposure times(this may be the same as market time)
2. One restricted market time of some predetermined duration such as 30 days, 60 days or 90 days. This time varies by the client to meet their internal needs or policies.

They use all kinds of cool words to describe what they want. The most common is "Quick Sale". They define "quick sale" value by stating #2 above to you in specific instructions.

What were your REO Clients specific instructions in the engagement communication?

Word of advice. Your supposed to accept only assignments that you are qualified to complete. Go take some REO classes asap. This forum although helpful is not exactly what USPAP says you must do. It does satisfy some Peer requirements, but thats about it.

http://commerce.appraisalfoundation.org/html/2006 USPAP/COMPETENCY_RULE.htm
 
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bfriendly

Junior Member
Joined
Oct 14, 2007
Professional Status
Certified Residential Appraiser
State
Georgia
DUDE, dont sweat it.....dont be afraid to make ALL 4 values exactly the same. Sounds like with NO REPAIRS necessary you will only have 2 possibles, since there are no repairs necessary. If your client is telling you to use a "certain form", it will ask for a value within the typical marketing time, then ask for a value within I THINK 90 days. The DOM May be the same, may not be, depending on the subject's marketing area and what is the typical marketing time.

Anyway, I guess the answer is YES all 4 values may be the same!

Dont worry about the flagging, just put them(4 values) in there and SUPPORT the numbers. E.g. instead of saying, there is no AS-REPAIRED value, say, value repaired and value AS-IS are the same, since no repairs are necessary.:new_all_coholic: Remember that you probably have some DA with a checklist that has NO CLUE what the checklist even means and they are the ones "Flagging" you.

Be NICE Carnivore...........:rof:
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
My comment too...if there are no necessary repairs then the "as repaired" value would be the same. Just be sure to comment about "no repairs required". A little narrative would have solved the problem. Also, as stated, if you are not sure, call your client and ask what they want.
 

al002kim

Thread Starter
Sophomore Member
Joined
Nov 30, 2007
Professional Status
Certified Residential Appraiser
State
California
Thank you for all your comments, actually I did not put the question in details. The lender was asking to correspond values in a 90 day marketing. I also reported "no repairs were noted at time of inspection" therefore I ommitted the value for "as repaired". Anyways, I got the basic idea, and yes, I will take some classes for REO, it will keep me informed and ready for future assignments.
 
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