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"You're the first appraiser ever...."

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DianaOKC

Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Oklahoma
Got an order today from out of state lender for an appraisal on a new home that is about 2 weeks from being completed, purchase agreement was signed on 04/22/02. I called the builder to get a copy of the plans and specs and was asked why I needed them - you're the first appraiser to ever ask for that. I explained why I needed them and he stated that he never does plans and specs, he just shows the potential buyer the model home and tells them it will look like that when it's done. The p.a. has a couple of lines about the granite countertops and how much insulation it will have and them some cya for the builder but that's it. Was told that he will get a specs for me but it will take a while and that the plans are copyrighted so he can't get those for me. Why would anyone buy under these terms! Do you run into this that often?
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
BS.

And I've never heard of a builder that wouldn't KNOW that the appraiser needs plans and specs. :roll:
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
- you're the first appraiser to ever ask for that.
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Why would anyone buy under these terms! Do you run into this that often?

Diana:

You can quote me: I am the first appraiser who has followed the new Fannie Mae Rules. You may want to get together a packet for other appraisers who will be asking for them. (knowing full well the requirement has been there longer, it is just now spelled out in black and white with a number in front of it :roll: . (or am I missing something - it WAS reiterated in the FEB announcement wasn't it? :oops: ) Anyway that is the line I have been useing since February, I used something else before, but this seems to shut them up cause it's 'new' 8) .
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As to the latter: Folks buy the top 1/32nd of a house anyway, and are astoundingly trusting souls... most of them couldn't tell you what was 'under the hood' of their car either.

and lastly: YES!!!! :evil: :? :!: :?:
 
Joined
Jan 16, 2002
I know it's incredible, but I hear the same thing at least once a week !
The problem is that they are right - you are the first appraiser that has
asked them this - why ? Because of all the idiots in our industry, many of which couldn't even read a set of plans. It reflects yet another new low our industry has reached. The builders usually try to pass off some half-assed sketch with pencil changes to it as plans. Builders are not the only ones, the same goes for re agents, mortgage brokers, etc - why do you needs the plans ? I can't even discuss it anymore with these people - NO PLANS = NO APPRAISAL = NO LOAN = NO CLOSING = NO $$$ usually gets their attention.
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Diana, .... One's first thought could be that this is the first house or first development project this builder has been involved in....and so, of course , he's never been asked that question before by an appraiser. Without causing any hurt feelings, you could do what I remember some other Forum poster stating one time. Call your lender, give them name and phone # of builder with whom you interacted, and ask then to make that request. You just might find an expedited envelope outside your front door the next morning when you go out to get the newspaper !
 
Joined
Jan 16, 2002
Ross:

If that's true then every builder in my county just started in the business.
I hear this from builders who are doing 100 units, and 50 have sold.
As you can probably tell this topic is a "hot button" for me. I've actually
has builders tell me they can't give me a set of plans, because they only have one copy to work off - translation "I'm to cheap to have sets made".
Let's see 100 units with a profit margin of $90,000 per unit, hmmm.
 
B

Bemis Pownall

Guest
If the subject is only 2 weeks from completion it would be simple enough to measure and figure out were the bedrooms are and were the baths are were the basement is, what style it is, were the kitchen is and so forth. Floor coverings, countertops, upgrades and other amenities are the only blanks one should have after an inspection of a home 2 weeks from completion. The upgrade sheet of the builder contract or an interview with the sales representative could answer all the questions.

JMHO
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
Diana,

It is in USPAP. This is SR 1-4(h)

h) When appraising proposed improvements, 8 an appraiser must examine and have available for future examination:

(i) plans, specifications, or other documentation sufficient to identify the scope and character of the proposed improvements;

(ii) evidence indicating the probable time of completion of the proposed improvements; and

(iii) reasonably clear and appropriate evidence supporting development costs, anticipated earnings, occupancy projections, and the
anticipated competition at the time of completion.

Comment: Development of a value opinion for a subject property with proposed improvements as of a current date involves the use of the hypothetical
condition that the described improvements have been completed as of the date of value when, in fact, they have not.

The evidence required to be examined and maintained may include such items as contractors’ estimates relating to cost and the time required to complete
construction, market and feasibility studies; operating cost data, and the history of recently completed similar developments. The appraisal may require a
complete feasibility analysis.

It isnt new. Been in USPAP as long as I can remember. But anymore, that isnt terribly long.
 
A

Anonymous

Guest
The builders refusal to let you see the plans means that he has something to hide. His excuse about the copyright is pure bull. Tell the builder that he will provide the plans or you will not complete tha appraisal and he will lose the sale.
 
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