REO company requesting a 1004 to be used on a 4-plex

[Dirty Harry]

The first few lines of page 4 of the 1004 make this a no go. Think of it this way, a company you dot no know asks you to participate in a 4 way orgy but all the paperwork will reflect you as monogamous. Explain this to your significant other later.

They want them on the old 1004 for these.

 

[Blueprint]

Maybe they just want a cheap appraisal.

 

[Michigan CG]

That does make sense. Generally, these appraisals are not needed for lending purposes, they are for asset valuation purpose.

Using the 1004 form could be a violation of the Conduct Section of the Ethics Rule.....An appraiser must not communicate results in a MISLEADING or fraudulent manner. The 1004 report is misleading since it is for SFR.

Additionally, Standards Rule 2-2(b)(vii) says the appraiser must summarize the scope of work and the preprinted scope of work does not fly with the 1004 for a 4--plex and definitely not for asset valuation purposes.

Finally, in the Scope of Work Rule, under Scope of Work Acceptability the comment section says..."what an appraiser's peers' actions would be in performing the same or a similar assignment."

 

[Dirty Harry]

Using the 1004 form could be a violation of the Conduct Section of the Ethics Rule.....An appraiser must not communicate results in a MISLEADING or fraudulent manner. The 1004 report is misleading since it is for SFR.

Additionally, Standards Rule 2-2(b)(vii) says the appraiser must summarize the scope of work and the preprinted scope of work does not fly with the 1004 for a 4--plex and definitely not for asset valuation purposes.

Finally, in the Scope of Work Rule, under Scope of Work Acceptability the comment section says..."what an appraiser's peers' actions would be in performing the same or a similar assignment."

Hmmm.. the old 1004 has a section in it for # of units, comments please.

 

[Carnivore]

Why not give them a first page that states the value. Add in several pages of USPOOP and descriptions and then your certs.

Bingo. cant get any easier then that. You could even use three ring note book paper. Helps space your letters and sentences better!

Why oh why are they so insistent on using the 1004 for everything.

 

[OSU Beavers]

Cheap

I don't understand the thinking behind this. Why would they want a fourplex appraised as a single family?

Because they only want to pay for a 1004 even though you are doing the same amount of work that would go on a 1025.

 

[Webbed Feet]

That does make sense. Generally, these appraisals are not needed for lending purposes, they are for asset valuation purpose.

Mr. Rasch,

If they are asking for a 03/2005 version 1004.... I believe I would very much advise calling the Oregon board for counsel before any Oregon appraiser should believe using that form for reporting an appraisal of a four-plex makes sense.

Webbed.

 

[timd354]

That does make sense. Generally, these appraisals are not needed for lending purposes, they are for asset valuation purpose.

It does make sense for this purpose, especially considering that the income approach would not be appliacable to the appraisal of such a property in its "as is" condtion, since it is clearly not rentable "as is". That being said, I don't know why they would not let you do the report on the 1025, leaving the income section blank.

 

[ghrousseau]

Maybe they just want a cheap appraisal.

No..........the 1025 is just too confusing for their highly trained professional staff. 3 numbers at the bottom to look at instead of one. It doesn't make sense to me..............the typical buyer of that property only cares about the income stream after rehab.

 

[Dirty Harry]

Mr. Rasch,

If they are asking for a 03/2005 version 1004.... I believe I would very much advise calling the Oregon board for counsel before any Oregon appraiser should believe using that form for reporting an appraisal of a four-plex makes sense.

Webbed.

Hi Web,

Just playing the devils advocate tonight! :new_multi:

And if they want it on the 6/93 version 1004? It has a section in it for # of units. As I stated in earlier post, I personally haven't had to cross this bridge with them yet.