Episode 059 - Are All Appraisal Reports the Same?
Episode 059 - Are All Appraisal Reports the Same?
Last episode we discussed how appraisers are different. In this episode, Brian discusses different assignment forms, and gives some cautionary advice on why it is important to know how different reports and forms can change the appraisal process. Hint: they can affect the value and the entire perspective on the valuation of a property. You have been warned!
SHOW NOTES
- 01:30 – Many variables that change the appraisal report.
- 01:36 – The most common is the URAR, Fannie Mae form 1004.
- 02:18 – Other forms you might see: Condo, Manufactured Home, 2 to 4 Family, Operating Income and Rent schedule
- 02:54 – More controversial forms that exist. They can be used but be aware of them and their pitfalls.
- 03:19 – Exterior Only form, 2055. Not just a drive-by approach but is subjective on how the exterior viewing occurs. Won’t see the interior items like room count, quality, condition, and other elements inside the property.
- 05:27 – Desktop report. No one is viewing the property. Sitting at a desk and valuing property.
- 06:17 – Most controversial is the 1004P. Hybrid or Bifurcated appraisal. One person that is not licensed views the property and an appraiser is in the office writing the report.
- 08:05 – Fannie Mae feels the appraiser’s best use is the analysis, not looking at a home.
- 08:48 – COVID-19 has caused lenders and secondary mortgage participants to relax their rules on what an appraiser must do for the appraisal inspection process.
- 10:50 – Agents ask the appraiser what type of report are you writing? Are you going into the home?
- 11:30 – Ask the lender what type of report they are ordering or will allow. Lender might be okay with a desktop or hybrid inspection, but you and your client might not be okay with that choice.
SHOW LINKS
- URAR – https://en.wikipedia.org/wiki/Uniform_Residential_Appraisal_Report
- 1004P Form – http://www.workingre.com/fannie-mae-plans-massive-changes-to-appraisal-process/
- VA Protocol for COVID-19 – https://www.benefits.va.gov/HOMELOANS/documents/circulars/26_20_11.pdf
- Fannie Mae Protocol for COVID-19 – https://selling-guide.fanniemae.com/Content-Management-Labels/KB-Management/Guide-FM-com/1809017161/COVID-19-FAQs-Appraisals-12-16-2020.htm#:~:text=The%20temporary%20COVID%2D19%20appraisal,a%20no%2Dcash%20out%20refinance.
BETWEEN THE LINES LINKS
Web
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
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