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REO Appraisal Help

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Lukasz123us

Thread Starter
Junior Member
Joined
Feb 12, 2008
Professional Status
Certified Residential Appraiser
State
Illinois
I got my first REO appraisal order and i have never done one. I have a 1025 REO in Maywood Illinois. Could someone please e-mail or show an example of how an REO is done with the additional addendum.

Thanks,
Luke
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
How in gods name can you accept the assignment when you are not competent to do the job????

Why not find someone in your market who has done these in the past and offer to assist them, if not find an educational course and get competent that way.

Just out of curiousity, did you disclose to your client that you don't have a glimmer of an idea of how to complete the assignment?

Go read the COMPETENCY provision in USPAP.....
 

Lukasz123us

Thread Starter
Junior Member
Joined
Feb 12, 2008
Professional Status
Certified Residential Appraiser
State
Illinois
I know of the competency provision and this was disclosed. I have a friend who does REO's all day. I wanted to get started before visiting him. I was just looking for someone who had done one.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
Well I've done a whole bunch in the past and know that each one is different. What does your client want? What are the marketing times they are specifying? Where are you going to get your estimate/opinion of cost to cure? What requires repairs and what is just cosmetic in nature? Does the gas leak, the water leak, the sewer system work, the lights, heat, and water heater work or do you need to require a competent professional to test all these?

Is the wiring still in the house or have meth heads stripped it clean? (That is happening more and more)

It's a lot more than a cookie cutter house in a residential neighborhood.
 

Jim Onderisin

Senior Member
Joined
Sep 15, 2003
Professional Status
Certified Residential Appraiser
State
Illinois
Good luck. Hopefully you will have a decent property to cut your teeth on. If you get one of the Maywood dogs, though, you may need your friend's help. Luckily he or she does them all day long.
 

Mari Mabus

Freshman Member
Joined
Oct 29, 2004
Professional Status
Certified Residential Appraiser
State
Illinois
Good luck. Hopefully you will have a decent property to cut your teeth on. If you get one of the Maywood dogs, though, you may need your friend's help. Luckily he or she does them all day long.

Jim I am lovin' it! :)
 

bmallory

Freshman Member
Joined
Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
luke-
you don't want to start out doing a 1025reo. they are much more involved than a 1004reo. i agree with the others that you need to learn the ropes by going with an experienced appraiser.
pass on the job to someone more experienced/let them get the fee/let you get the experience.
i just knew from your post that you were going to get sandblasted right off the bat...........
good luck.
 

JonGalt

Junior Member
Joined
Aug 4, 2005
Professional Status
Certified Residential Appraiser
State
Illinois
Bring someone with you to Maywood when you go. Sometimes the house is not as empty as you would think. I also recomend taking a class on REO and then assisting a peer on a couple before going it alone. REO's can be pretty invloved and in some cases somewhat dangerous, that's why we charge so much for them. Of course we rarely receive an order for one as there seems to be too many willing to do the job for peanuts. Good Luck!
 

Don Fiore

Junior Member
Joined
Sep 7, 2005
Professional Status
Certified Residential Appraiser
State
Illinois
Bring someone with you to Maywood when you go. Sometimes the house is not as empty as you would think. I also recomend taking a class on REO and then assisting a peer on a couple before going it alone. REO's can be pretty invloved and in some cases somewhat dangerous, that's why we charge so much for them. Of course we rarely receive an order for one as there seems to be too many willing to do the job for peanuts. Good Luck!

Maywood dangerous? Nah. Try Englewood or North Lawndale. But yes, doing these can be harrowing especially when the front door is secured only with a padlock and you can't lock the door behind you once you enter the building.

I've found the best (and safest) time to do REOs in rough neighborhood is very early in the morning or in very cold weather. The riskiest times are summer afternoons.

Be wisely cautious but don't be paranoid. Remember, just as there are unsavory characters inhabiting these areas, there are also many very good and decent people who live there, too, and will help you if the need arises.
 

Don Fiore

Junior Member
Joined
Sep 7, 2005
Professional Status
Certified Residential Appraiser
State
Illinois
REO's can be pretty invloved and in some cases somewhat dangerous, that's why we charge so much for them. Of course we rarely receive an order for one as there seems to be too many willing to do the job for peanuts. Good Luck!

Forgot to include how much I agree with the above statement. There's no question about the "risk", sometimes a very dangerous risk, involved in completing these types of inspections, and typically in every business the cardinal rule is the greater the risk the greater the reward.

Who, of all people, should be able to understand this better than lenders or investors?

However, in my experience, that logic is rarely comprehended or at least not accepted by the average client. That's why I turn a lot of 'em down, too. It's another example of how appraisers are frequently left holding the soiled end of the stick.
 
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