Use Of MLS Photos In Report

[CANative]

Step 3 in the Review Process: Completeness, Accuracy, Adequacy, Relevance, Reasonableness

MLS photo meets all criteria.



The client is asking for a hamburger (MLS photos) and you give them a cheeseburger (original photos). Why appraisers exceed the scope of work without compensation blows my mind. Even if you charge $5 more a report for original photos, at the end of the year you can buy your software renewal or a new computer.

If the appraiser is executing the scope of work then he is driving the comps. Not taking a picture is ridiculous and everyone knows it. Using MLS photos is "wink and nod" appraisal practice. And everyone knows that too.

 

[CANative]

There's a house in a remote area that I've seen countless times, up close, and I drive by it frequently. I remember when they were building it. But it's always been too inferior for some of my subjects and to superior for others so I never took a picture. Well I needed it for one I finished a day or two ago and I didn't take a stinking picture because I thought it was too superior. But it was across the street from the subject and the most recent sale in the development so I had no choice but to use. MLS photo with an explanation.

 

[Peter LeQuire]

This MLS photo discussion is like the dead beat brother-in-law living in the basement - he just keeps showing up in the media room asking why we won't let him watch "Benny Hill" reruns.

The operative principle is to do what you say you did. IF its a GSE assignment, when an appraiser signs the report, she is saying she INSPECTED (not drove by, regardless of the speed, but inspected) the exteriors of the comparables used - that's the agreed to scope of work. Taking a photo of it for use in the report is not part of the SOW for GSE assignments, but IS for FHA work, and MAY BE a client-specific requirement for any assignment.

Some clients require an appraiser to "prove" that she actually inspected the comp by requiring appraisers' photos - this has become more widely required because, over time, numerous appraisers have proven themselves incapable of doing what they say they did. ('Roun' 'chere, it's referred to lying but others may be offended by that characterization.) This has further morphed into silly requirements that the comp be photographed after the date of the appraisal assignment; or for "seasonal" photos; or whatever is just another outworking the lack of confidence the secondary market has in our moral consciousness. (IMO having to "prove" that we did what we say we did is a fairly sad commentary on the opinion of the level of regard users of appraisals have for appraisers' credibility and ethical behavior.

 

[BRCJR]

It is not completely about viewing the comparable property. It is about viewing the comparable property and the surroundings that may have an impact, positive or negative, on the sale price of the comparable.

 

[Peter LeQuire]

It is not completely about viewing the comparable property. It is about viewing the comparable property and the surroundings that may have an impact, positive or negative, on the sale price of the comparable.

I know that, just as I know the reasons behind being familiar with all the locational factors that influence the victim properties and the comparables used to appraise them. But in the relatively limited context of the integrity of appraisers and the apparent perception of clients, purchasers of residential loans about the lack thereof among GSEs, mortgage insurers and regulatory officials, the SOW does not say that an appraiser signing a GSE-related appraisal and certifying by the signature that she inspected the comparables - the SOW doesn't specify the she inspected "surroundings". Being aware of, analyzing and understanding all of the locational factors affecting an appraisal - including the comparables used to develop the report - is a reasonably expected responsibility of the appraiser.

 

[TRESinc]

I know that, just as I know the reasons behind being familiar with all the locational factors that influence the victim properties and the comparables used to appraise them. But in the relatively limited context of the integrity of appraisers and the apparent perception of clients, purchasers of residential loans about the lack thereof among GSEs, mortgage insurers and regulatory officials, the SOW does not say that an appraiser signing a GSE-related appraisal and certifying by the signature that she inspected the comparables - the SOW doesn't specify the she inspected "surroundings". Being aware of, analyzing and understanding all of the locational factors affecting an appraisal - including the comparables used to develop the report - is a reasonably expected responsibility of the appraiser.

what is says is:

The appraiser must, at a minimum: (1) perform a complete visual inspection of the interior and exterior areas of the subject property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report.

more often than not the comps are located in the subject neighborhood, so you can kill 3 birds with one stone - inspect the comp from the street (3), inspect the neighborhood while driving your comps (2) and take your photos!

 

[Peter LeQuire]

what is says is:

The appraiser must, at a minimum: (1) perform a complete visual inspection of the interior and exterior areas of the subject property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report.

more often than not the comps are located in the subject neighborhood, so you can kill 3 birds with one stone - inspect the comp from the street (3), inspect the neighborhood while driving your comps (2) and take your photos!

That's simply the most efficient way to do field work.

 

[JTip]

This MLS photo discussion is like the dead beat brother-in-law living in the basement - he just keeps showing up in the media room asking why we won't let him watch "Benny Hill" reruns.

lol...ain't that the truth.... I like how new dog OP just kicks a hornet nest into the forum and sits back watching us slap each other over MLS photos when all we have to do is go out the door.

Next time you get your tires rotated and you end up with a flat, do you just assume that they check the tire pressure since they are 'right there'?

Try to get a fee appraiser to confirm a sale, I mean REALLY confirm a sale.... Stop the car, take your original comp photo and go knock on the door. Takes 60 seconds. Due diligence? Asking TOO much?

*walking out of the hornet infested room because CAN is shaking up the can of Raid*

 

[Michigan CG]

to each his own but i will never understand appraisers who drive by the comps, stop to look at them, take notes and yet refuse to spend 5 seconds to snap a photo. it just makes no sense.

Those appraisers are liars, they don't drive by the comps, stop and take notes.

 

[CANative]

That's simply the most efficient way to do field work.

- the SOW doesn't specify the she inspected "surroundings".

It's also an assignment condition for the GSE's (and anyone who relies on GSE underwriting as evidence by their requirement to use GSE forms). And we sign a certification stating we did that.

Take the photo or explain why you couldn't. Don't just put in the MLS and hope no one kicks up a fuss.