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What form do you use for a private party?

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joycedconner

Thread Starter
Freshman Member
Joined
Feb 7, 2008
Professional Status
Certified Residential Appraiser
State
Washington
I remember being told I don't need to use a 1004 form for a private party who just wants to know what the value is for his home that he is thinking of putting on the market? Thanks
 

Rudy Canoza

Senior Member
Joined
Sep 27, 2003
Professional Status
Certified Residential Appraiser
State
California
I use a Private Party Form 1000.

J/K...

Try a GP form or AI form.

Or the 1993 URAR with an addendum...
 

Ken B

Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
You don't need to use a form at all.
 

Richard Carlsen

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Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
In USPAP you have 4 options. In Michigan, you have 3 options because you are not allowed by law to report the results of an appraisal verbally. All appraisal reports must be in writing.

That said, if the client just wants to know what the house is worth, you can use a Restricted Use Reporting form if the client agrees to receive the report in this form and fully understands in advance what they are going to receive. This form is useful at times for many assignments but you have to make sure that you comply with USPAP and include all of your Certifications as well as state your Limiting Conditions. Some USPAP compliant appraisers actually use this reporting form to report their Comp Checks.

You could do a narrative but that sounds like a little over-kill to me.

The form that is most often used and the one that most people think of as an "appraisal" is the Summary reporting form. The FNMA 1004, the 2055, the good old 704 are just examples of this form. However, for private work, I would not recommend using any of these form as they are use specific to lending consideration. Since in doing a private non-lending appraisal, you are not controlled by the old Supplemental Standards and what I think are now referred to as assignment conditions (6 months sale/1 mile rule for example), your reporting form should not be one that says that you have adhered to these rules in the Certs.

I personally like the alamode GP forms. They seem to flow better for me in completing than the AI forms.

Whichever form you choose, make sure that the client is aware of what they will be receiving before you submit the report. You might want to reread the new USPAP to make sure you are doing things right if this is your first venture into doing non-lending work.
 

NC Appraising

Senior Member
Joined
Apr 28, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
I'm assuming that you have a la mode software. Go to contents, and find "a la mode general purpose forms and addenda". You can also use "AI reports and addenda". Have at it.
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
I recently used the AI form for the first time a few weeks ago and am about to use it again. It's adequate for private appraisals, though you'll want to add your typical verbiage and perhaps expand on others.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
only "user friendly" Generic version of URAR - excess "techspeak" or verbosity tends to confuse homeowners, 704/old 2055 - they tend to think they got "shortcutted" and overcharged $$$. Many have "full" prior summary appraisal reports in their possession and expect the same. Unexpected surprises in report format can create unnecessary long term debates and never-ending questions.... for .........months.
 

xmsenarho

Freshman Member
Joined
Jan 12, 2005
Professional Status
General Public
State
Florida
I remember being told I don't need to use a 1004 form for a private party who just wants to know what the value is for his home that he is thinking of putting on the market? Thanks

The General Purpose Appraisal Report (GPAR) works nicely because it is similar in lay-out, etc. to the 1004. Also, as pointed out, the Appraisal Institute form AI 100.01. This one is particularly nice if you're completing the Cost Approach and/or the Income Approach because there is a page for vacant lot sales to develop the site value and a page for comparable rentals to determine GRM, etc.

I do a great deal of work for attorneys for estates, divorces, liquidation. . . and I have started doing a narrative report for those. I have the basic format saved in MS Word so it doesn't take a great deal of time longer than "form" type appraisals and it better explains the appraisal process, methodology and value conclusions. It also keeps the client from thinking "he charged me $$$ and all he did was fill out a FORM!"
 
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