• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Tenant Requesting Appraisal Prior To Offer

Status
Not open for further replies.

Elizabeth Stapley

Freshman Member
Joined
Aug 27, 2006
Professional Status
Certified Residential Appraiser
State
Utah
I had a private appraisal request from a tenant wanting to know what the current market value of the house they are living in/renting before making an offer to the landlord to purchase. The tenant is not currently in any written negotiations with the owner only a verbal discussion that they would like to purchase his home and he has stated he is willing to sell. Are there any issues or landmines with this as the owner is not involved or aware that the tenant is having his property appraised. I have not encountered this situation for a private assignment. I could not find any similar threads in this forum. thanks in advance for anyone taking the time to post.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
The tenant is your client in this case. Disclose the fact that they are renting the property, may be interested in a purchase etc...clarify that the tenant is your client and intended user and that the owner/potential seller is not an identified intended user..
 

Elizabeth Stapley

Freshman Member
Joined
Aug 27, 2006
Professional Status
Certified Residential Appraiser
State
Utah
The tenant is your client in this case. Disclose the fact that they are renting the property, may be interested in a purchase etc...clarify that the tenant is your client and intended user and that the owner/potential seller is not an identified intended user..

Thanks I appreciate your input and time. I was thinking along the same lines but thought I better get another opinion. thanks again!
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Are there any issues or landmines with this as the owner is not involved or aware that the tenant is having his property appraised.
Presuming the tenant's leasehold rights allow it to use control who enters the premise, there is no issue as far as doing the appraisal for the tenant (with an interior inspection). Otherwise, it could be done via an exterior inspection.

Your bigger risk (I'm guessing; but you can tell me I'm wrong if that is the case) is to make sure you understand what they are asking for is an appraisal. As such, it must meet SR-1 and SR-2 standards as well as the other parts of the USPAP. So, don't hand them a rent survey form only. That is not a USPAP-Compliant appraisal.

Good luck!
 

BRCJR

Elite Member
Gold Supporting Member
Joined
Sep 20, 2005
Professional Status
Licensed Appraiser
State
Virginia
....and be sure about form selection.......maybe could go without saying.
 

Red Flint

Member
Joined
May 15, 2005
Professional Status
General Public
State
Michigan
Suggest informing the tenant that this is not an appraisal for financing the purchase, and the tenant may end up paying again for an appraisal ordered by the financing interest, and it may not be completed by you.
 

Tom4value

Senior Member
Joined
Dec 4, 2016
Professional Status
Certified Residential Appraiser
State
Massachusetts
I had a private appraisal request from a tenant wanting to know what the current market value of the house they are living in/renting before making an offer to the landlord to purchase. The tenant is not currently in any written negotiations with the owner only a verbal discussion that they would like to purchase his home and he has stated he is willing to sell. Are there any issues or landmines with this as the owner is not involved or aware that the tenant is having his property appraised. I have not encountered this situation for a private assignment. I could not find any similar threads in this forum. thanks in advance for anyone taking the time to post.
Not only is it ok, it is a great way to market your appraisal business! As noted from someone else, don't use a URAR as the appraisal is not for mortgage lending. Also, make your client aware that should he/she contract to buy it, their lender will not use your appraisal and probably not you, either.
 

Elizabeth Stapley

Freshman Member
Joined
Aug 27, 2006
Professional Status
Certified Residential Appraiser
State
Utah
Suggest informing the tenant that this is not an appraisal for financing the purchase, and the tenant may end up paying again for an appraisal ordered by the financing interest, and it may not be completed by you.

Thanks to everyone posting. Yes, I have explained that they will not be able to use this appraisal for a future purchase through a lender.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Thanks to everyone posting. Yes, I have explained that they will not be able to use this appraisal for a future purchase through a lender.

I apologize, Elizabeth. I misread your original question to mean that the client wanted a rent survey and not a market value appraisal for the property they were renting.
My caveats were for the rent survey only scenario. I'm sure you thoroughly familiar with completing an appraisal on a property for a private party.
 

Elizabeth Stapley

Freshman Member
Joined
Aug 27, 2006
Professional Status
Certified Residential Appraiser
State
Utah
Not only is it ok, it is a great way to market your appraisal business! As noted from someone else, don't use a URAR as the appraisal is not for mortgage lending. Also, make your client aware that should he/she contract to buy it, their lender will not use your appraisal and probably not you, either.

thanks for your input, I do not use the 1004 for private assignments. I use the Wintotal GP Residential, general purpose form.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks