QUESTIONS
SPECIFIC TO LENDER REQUESTS
What
can the client do to expedite turn around time?
The appraisal order is
critical to the process. When incorrect or incomplete information
is provided at the time the order is placed, the appraiser must
first correct the errors or omissions of the client before the
assignment can be considered acceptable. The appraiser generally
uses the information provided by the client in the initial
selection of possible comparable sales. Thus, if the client
provides little or no information, or worse, incorrect
information, the process can significantly delayed.
Such problems include missing or incorrect: phone
numbers, subject property addresses, contact names, client
delivery address, room counts, number of improvement counts, site
sizes (like 40 acres instead of a city lot), and many other
similar items. Such errors are generally the result of either not
asking the borrower the simplest of questions, or not paying
attention to the borrower's answers. We believe these issues are
beyond the control of the appraiser and can easily be remedied by
the client.
Shipping arrangements are
the second most prevalent cause of appraisal report delivery.
Eliott Schultz Appraisal
Service will deliver the client order to your desktop via
email at no charge. This method generally saves 1-4 days in turn
around time, and virtually eliminates loss or delivery delay
caused by mail delivery, UPS mis-routing, etc.. We find that most
lenders can accept email delivery in Adobe Acrobat format (*.pdf)
with no problem, but that many do not have a color printer to
print photos. Even the best color laser printers are right around
$1000. We believe that such an investment to save such a huge
amount of turn around time is a wise one. . The cost of printing a
report on the client end (and the ability to print multiple copies
at no additional charge) far outweighs the expense and delay of
any other alternative.
What can
we expect from a "Drive By" Appraisal?
You can expect an opinion of
value that is typically and primarily formulated upon data
provided by the client at the time the appraisal order is
placed. The level of detail presented in the finished report is
significantly less than found in a full appraisal. The
"Drive-By" appraisal is considered to be a
"limited" appraisal, thus invoking the departure
provisions of the Uniform Standards of Professional Appraisal
Practice (USPAP). The finished report is considered to be a
"restricted" report, restricted to use by the original
ordering client for the original intended purpose and no other
purpose. Typically, the appraiser forms an opinion of value based
upon very specific and limited assignment parameters and the
completed report is not suitable for alternative purposes. Only
certain properties are suitable for a limited "drive-by"
type of appraisal. When there are an abundance of recent
comparable sales in the vicinity of the property being appraised,
this type of appraisal and report may be suitable. Eliott Schultz
is very familiar with this market area, and will correctly advise
the client whether or not a less than complete appraisal is
advisable, and we will not accept a drive by appraisal assignment
when it is apparent that the finished report may result in a less
than meaningful final opinion of value
The appraisal report is
completed based on the appraisal order. While the appraiser will
make every effort to correct obvious order errors, the appraiser
cannot be responsible for such errors. If the borrower's name is
spelled wrong on the order, it will probably be spelled wrong on
the appraisal report. The lender's name on the appraisal order
will be the client's name on the report. It is important to all
parties that the appraisal order be complete and accurate to the
best of the client's ability. This is especially important
if the order specifies that the appraiser not inspect the
property improvements. If the lender indicates three bedrooms on
the order in conflict with public record, it is possible (and
perhaps likely) that there is a converted garage or non-permitted
addition that would be overlooked.
The appraiser assumes no responsibility whatsoever for errors or
omissions by the client or as submitted in the assignment order.
In the event report modifications or alterations are required
after submission, it is likely that additional charges and/or time
delays will occur.
Do
you complete the "Manufactured Home Checklist" for your
client if needed?
The Manufactured Home
Checklist is considered to be an "in house" form
provided by the client. There is no specific format required,
and the form is not recognized or authorized by any known
appraisal standard. Typically, the form will ask the appraiser to
"certify" or provide "confirmation" that a
manufactured home unit is in compliance with safety or
construction standards that the appraiser has no way of knowing
from information available to the appraiser through the normal
course of business. In the event the client requires the appraiser
to complete such a form as a condition of the assignment, then the
client MUST provide the form to the appraiser at the time the
order is placed and prior to acceptance or confirmation of fee or
turn around time. It is not acceptable to require such a form
after submission of the appraisal report, and Eliott Schultz
Appraisal Service does not complete such forms for clients unless
the form is clearly within the scope of the assignment and clearly
within the area of expertise of a typical real property appraiser.
The Fannie Mae 1004C form is the lending standard for houses
that are all or partially manufactured houses and will be the
format generally used for these type of assignments, the HUD 433a
form is required for all manufactured houses on their own lots
that have foundations. a sample can be provided.
