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Summary or Self Contained

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Doug Trites

Thread Starter
Junior Member
Joined
Oct 17, 2007
Professional Status
Certified Residential Appraiser
State
Michigan
I am reviewing a SFR 1004
The subject was listed from 8-31-2005 at 224,900 and continued to be listed until 1-23-2007 for 215,000. The appraisal being reviewed was completed on 2-1-2007 with a final appraised value of 294,000. I am sure this alone would raise a few eyes.

However, the question is this. This was completed on a 1004 and has areas stating it is a summary appraisal. But the appraiser ends the report with the Appraisal and Report identification as being a self contained report. No additional information about adjustments are address and not additional data other then normal info on standard 1004. How would the rest of the review appraisers handle this portion of the review. There are other issues which are being address, this is just a question about the reporting description area onl
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
I am reviewing a SFR 1004
The subject was listed from 8-31-2005 at 224,900 and continued to be listed until 1-23-2007 for 215,000. The appraisal being reviewed was completed on 2-1-2007 with a final appraised value of 294,000. I am sure this alone would raise a few eyes.

However, the question is this. This was completed on a 1004 and has areas stating it is a summary appraisal. But the appraiser ends the report with the Appraisal and Report identification as being a self contained report. No additional information about adjustments are address and not additional data other then normal info on standard 1004. How would the rest of the review appraisers handle this portion of the review. There are other issues which are being address, this is just a question about the reporting description area onl
By definition, the 1004 is a form summary report. You have summary report stated in the appraisal with one spot in the report that says self contained report.

It would appear to me that is just sloppy work and not very good proof reading. I personally think the intention of the appraiser was to present a form summary report.
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
Actually, there are areas on the Fannie forms that don't rise above the level of reporting indicated for a Restricted Use Appraisal Report.

If you look at AO-11 the example it uses to illustrate the difference between the three reporting options is "Zoning". If you compare what the ASB considered would represent a "Summary" you'll see that none of the residential appraisal report forms we generally use other that the AIs version even has room to provide that "Summary".

And that's just one example.

As for "Self-Contained", there are a lot of commercial appraisers putting out 200-page narratives who don't dare use that term for fear that someone will spot something they missed.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
George, I am sure you could go through the entire 1004 form and cite USPAP deficiencies besides HBU and its analysis. Just checking a box does not do it.
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
This was completed on a 1004 and has areas stating it is a summary appraisal.
Did it say "summary appraisal" instead of "summary appraisal report," or was that you?
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
Actually, there are areas on the Fannie forms that don't rise above the level of reporting indicated for a Restricted Use Appraisal Report.
What is ironic, the first page, the first line of the 1004_05 form says; "The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property."
 

George Hatch

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Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
You know what they say:

Never send a banker to do an appraiser's work.
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
Okay, that was a cheap shot.

The attitude of the ASB has been to try to avoid a lot of really public political fights with the appraisal factions at the GSEs and government agencies. The public dustup they had over the newest forms was atypical, and the only reason they got involved was because they couldn't avoid it.

The same goes for some of the more controversial interpretations of USPAP that are found at a few of the state appraisal boards. The ASB (and the AQB) sees some of them going off on tangents, but puts forth some effort in leaving government to government. With that said, there is no doubt that some appraisers and regulators probably don't see it that way.

I don't know what went into the apparently tacit approval of the Fannie forms as Summary Appraisal Reports, but it always struck me a little as looking like a backroom deal. Anyways, the bankers have a brief report form that's easy for $10/hr clerks and automated systems to read and which seems to serve their purposes. Maybe adding all the little housekeeping details pushes past the point of diminishing returns. I mean, if residential appraisers were all required to struggle through analyzing and summarizing an HBU analysis or addressing exposure time in their appraisals it might actually take them another 10 minutes the first few times they do it. Time is money, and the bankers are all in favor of saving both.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
You know the issues of USPAP reporting requirements. One big issue is the intended user statement and what Fannie / AI agreed to and some banks, namely IndyMac, tried to enforce as if Fannie is the final word on complying with USPAP.

Even zoning on the form is not really a summarized description or analysis of whether the subject conforms to zoning but more of a check box legal opinion of same. :)
 

Doug Trites

Thread Starter
Junior Member
Joined
Oct 17, 2007
Professional Status
Certified Residential Appraiser
State
Michigan
Did it say "summary appraisal" instead of "summary appraisal report," or was that you?

You are right. It says summary appraisal report. This is located at the top of page one of the URAR.
 
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