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

[CANative]

What about doing Indian appraisals for HUD/FHA? They need to be on the Fannie form for the type of improvement. But there is usually no sales comparison approach and the value is from the cost approach. The value is probably not even market value, as defined in the form. Yet this is what they want and this is what they get.

 

[Anthony Cannata]

But you can do an income approach if you then back out all of the costs of renovation, profit, etc inorder to make the property an income producer.
The 1025 form remains the correct form for 2 - 4 family property.

My original point really was, why try and hammer a round peg into a square hole just because someone asks you to? If the client is concerned about the amount of work/cost then limit SOW and charge accordingly, but still do on the appropriate form.

Not to mention the possible liability problems. Which probably aren't really that big of a deal when, as everyone is pointing out, you simply produce a credible report.

As Riick says disclose.... But why disclose disclose disclose disclose disclose disclose disclose disclose because you have the wrong form, when you can just disclose disclose on the appropriate form?

 

[Webbed Feet]

<.... snip.....>

Just "X" out the certification verbiage that doesn't apply?

If it was a pre2005 form.. yes, I would.

Webbed.

 

[c w d]

CWD,
While I agree with most of your post, especially your take on the liability issues, I must respectfully take issue with what I've quoted above. The reporting format has no impact on an appraisers to develop credible assignment results, only on the reporting of the results.

My statement was concerning conditions of the assignment, i.e. the client doesn't want the income approach for a multifamily dwelling. It was not addressing which form of report we chose to use.