UW wants condition changed to Average.

[Mountain Man]

:rofl:
Yeah Bemis, that's the ticket.

 

[TEL2002]

It seems that 50-200 is a wide range for a neighborhood. Can you narrow the neighborhood down a little more, where the range is not so wide spread?

If the house is a 60, use one comp that is less, one that is more and one about the same. Adjust them + or - , this shows them the fair/average/good for the neighborhood. If you can narrow the neighborhood, maybe the house then really is average for the tighter neighborhood.

 

[Mike Garrett RAA]

Tell him/her you "can't make chicken soup out of chicken poop". It is what it is and it ain't averge if it needs everything you said UNLESS every other home in the neighborhood is in the same condition.

Fair is completely acceptable to Fannie Mae! It indicates it is "less than average". Tell the underwriter to read the manual again.

You make the condition determination....not the underwriter or loan officer!

 

[Blue1]

Tell your client that you can consider the home "average" only if you make the appraisal "subject to" the home being brought into "average" condition. This could include inspections by qualified professionals, repairs being done by a licensed contractor, etc.

P.S. What you describe doesn't even sound "fair."

 

[The Bob]

The term "fair" is so rarely used, due to pressure from lenders and others, that the UW probably thinks the house is ready to fall down. Its your call since you did the inspection, but a couple of pointers. You may say something like..."Overall structural condition appears typical, however the following conditions/items were noted..." Then make a detailed list of needed repairs etc... and take lots of photos. They still may not like it, but if the request is really from an underwriter, they will understand. The key is to address the condition as the market would. If its fair, then its fair. George H is right. Its really an underwriting issue. For properties that have just a little deferred maintenance, like worn carpet in a couple of rooms, I will sometimes use "Average-" and make an adjustment. One other thing, Its up to the client as to whether the report is done "Subject To" or "As-is". That's not your call.

PS. You should't have the done the report without getting paid upfront.

 

[Ross (CO)]

I sure do like Tim (TX)'s reply. Average....and "subject to" described repairs and completions. There is also many an opportunity to let a picture tell a thousand words. When the subject is not a gem, or a cream puff, I have at times taken my front view photo at an angle, and at a distance, as to allow the neighboring homes to also share a position in the picture. (Does anybody make a wide-angle lens digital camera yet ?) The proverbial "stick-out-like-a-sore-thumb" method gives the reader an easy look at just what abutts this property. Of course I'll take your basic cropped shot of just the front of subject. Same for back yard view. Back yards often portray the aesthetics of the property even better than the front. Place the wider-viewed pictures on the primary subject page, and the close-ups on a supplemental subject photo page. Of course, they can remove or not print the page they do not like, but we can not stop that, and we have at least shown them what they need to see. Take the extra pictures, and the close-ups ! ! Use of the word "Fair", sure, I've used it, and sometimes in conjunction with a blended field entry on the form like "Avg./Fair" and my text offers description to what is truly worthy of both words. Some folks use discretion as to what parts of their property they assign priority....and we simply share with the reader what the facts of those varied conditions might be. New vinyl windows all-around does not thrust a property into Average.....if other things so no-way !

 

[Tim Hicks (Texas)]

We, as appraisers, have the ability to make any appraisal "subject to" because we are preforming the appraisal according to guidelines. We can add a "as is" value, but no lender can dictate our process.

EX. Have you ever been asked to to a new construction appraisal that is supposedly finished according to everybody but you (oh, the utilities have to be on?, but the septic will be installed tomorrow, etc). I make it "subject to" because I will not turn my head like some appraisers.

EX #2. have you ever appraised a home with settlement damage? Don't you always make it subject to foundation repairs, even though the loan officer did not know there were foundation problems.


It is a myth, that we can not make an appraisal "subject to" without the lenders consent. We are supposed to be they eyes and ears of the lender, not the borrower or the loan officer. Just last week I appraised a single wide MH (I asked if they could really do a loan on a single wide and they said yes), but the axle, htich and wheels were still present and I made the appraisal "subject to" a suitable and typcial foundation for the market area.

 

[Pine Tree]

Change the grid to "average p.o.c." and when he calls back to ask what p.o.c is , tell him its an "average" piece of crap house.

This would be my choice as a course of action. I would also remove this joker from my approved client list. :usa W

 

[The Bob]

We, as appraisers, have the ability to make any appraisal "subject to" because we are preforming the appraisal according to guidelines. We can add a "as is" value, but no lender can dictate our process.

EX. Have you ever been asked to to a new construction appraisal that is supposedly finished according to everybody but you (oh, the utilities have to be on?, but the septic will be installed tomorrow, etc). I make it "subject to" because I will not turn my head like some appraisers.

EX #2. have you ever appraised a home with settlement damage? Don't you always make it subject to foundation repairs, even though the loan officer did not know there were foundation problems.



It is a myth, that we can not make an appraisal "subject to" without the lenders consent. We are supposed to be they eyes and ears of the lender, not the borrower or the loan officer. Just last week I appraised a single wide MH (I asked if they could really do a loan on a single wide and they said yes), but the axle, htich and wheels were still present and I made the appraisal "subject to" a suitable and typcial foundation for the market area.

I think you're wrong on this. The lender has the right to order the appraisal that suits their needs. Obviously. no lender would order an appraisal of new constrcution without it being done subject to. As to your other example, I can appraise it like it sits, with the damage, and make adjustment for this condition, or I can appraise it subject to being repaired. But its the clients call...not mine.

 

[Mike Garrett RAA]

Jim...the client cannot ask the appraiser to do anything contrary to USPAP and either the guidelines of the secondary market buying the loan package including the appraisal or the supplimental standard of either the insuring or guarantying agency, ie, FHA or VA.

Ross....my Kodak 210 has a .29 lens....I always (well almost always) include a cover page with photo of the subject showing homes on both sides. The subject page has the front photo shot from an angle to show the front and one side. The rear photo is typically shot showing the back and the other side.