UAD 2055 Exterior

[Mike Seward]

The quality and condition fields have always been on the 2055. What did you do before? PFA?

Condition: AVERAGE as in: C3 or C4 -- depending
Just put your extra-ordinary assumptions about condition in the comments section.

I would love to put an EA in the addendum, but Fannie says additional assumptions are not permitted.

 

[Riick]

I would love to put an EA in the addendum, but Fannie says additional assumptions are not permitted.

Poor Fannie, people ignore her wishes on a daily basis.
"Try it.
You'll like it."
/

 

[BlackLabs]

FWIW, I have been doing a lot of 2055 Ext's for Citizens over the last few years. I just did my first 2055Ext UAD the other day and won't do anymore due to the added work (checking basement sf, fin bas sf, ...). Due to the added time it is no longer cost effective to do them. The advantage is that they don't have to be scheduled. As hit has been stated in prior posts, the the interior condition is based upon assessor records, previous MLS, exterior condition...

Citizens does not accept EA appraisals. I have added this statement in several sections of the report including scope and reconciliation: (The first paragraph is highlighted in the report)

For the purpose of this appraisal, it is assumed that the interior condition of the subject property is consistent with the exterior conditions as observed and that the information provided by the town records is correct.

Per prior request, with the client, the appraiser has been requested to perform a drive-by appraisal and not to disturb the occupants by entering the building. Information pertaining to the subject property was gathered from public records and an exterior (Drive-By) inspection of the property on 09/01/2011, as requested by the lender. Other information was gathered from B&T, and Assessor's records. Physical characteristics used to develop this appraisal are based on an exterior inspection and town building and assessment records. Based on the observed exterior conditions, the data sources noted above appear to be accurate. Information on the comparable sales utilized in this report was obtained from exterior drive-by inspection, MLS, and the Assessor's records.

 

[Bob Ipock]

I get the Q off of the county tax card. interior condion is based on the x assumption that it is the same as exterior.

 

[Mike Seward]

Condition: AVERAGE as in: C3 or C4 -- depending
Just put your extra-ordinary assumptions about condition in the comments section.

I would love to add an EA, but Fannie says we can't.

 

[HF Mudd]

I would love to add an EA, but Fannie says we can't.

Where does it say that?

 

[Mr Rex]

Where does it say that?

Right there:

This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit; including a unit in a planned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unit in a condominium or cooperative project.
This appraisal report is subject to the following scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser’s continuing education or membership in an appraisal organization, are permitted.​

​

 

[HF Mudd]

Right there:

This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit; including a unit in a planned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unit in a condominium or cooperative project.
This appraisal report is subject to the following scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser’s continuing education or membership in an appraisal organization, are permitted.​

​

It also says under Statement of assumptions and limiting conditions:

4. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the presence of hazardous wastes, toxic substances, ect.) observed during the inspection of the subject property or that he or she became aware of during the research involved in performing this appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge or any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, this appraisal report must not be considered as an envrionmental assessment of the property.

Since the above is part of the limiting conditions, IMHO an EA regarding the condition of the subject is not a modification, alteration or deletion of the assumptions or limiting conditions - it is reinforcing said EA for the reader of the appraisal.

 

[Mr Rex]

Isn't that the exact same language that is on the 1004?

 

[HF Mudd]

Rex:

It is the same language as on the 1004 (#5 in the statement of assumptions and limiting conditions) but given that the context is within a different appraisal report with different scope of work (an exterior inspection), it is reasonable to assume that the meaning is a bit different.

Under the Scope of Work Rule:

406 Comment: The scope of work is acceptable when it meets or exceeds:

407 the expectations of parties who are regularly intended users for similar assignments; and
408 what an appraiser’s peers’ actions would be in performing the same or a similar
409 assignment.

IMHO, as long as the EA regarding the subject's condition, etc. dosen't lead to assignment results that are not credible, it is okay to use it within the context of the 2055 form.