Desktop Appraisal Not the Same as Hybrids
A modified desktop appraisal is NOT anything like hybrid/bifurcated reports promoted by some AMCs and lenders…
Appraisers, I have a correspondence relationship with an appraiser within one of the ‘agencies’ who this past week issued new guidance for “modified” reports, including desktops. I’m not allowed to say who, or which agency, but I have actually met the person at a conference, and the individual has been in this industry about 99 years, give or take a few – no…lots!
The person provided this suggestion for those of you who are beginning to do the new desktop appraisal, regardless of which agency is involved:
“If you have a desktop assignment, set up an appointment time on your calendar. Then, at that time, get out your inspection sheet, iPad or whatever you normally use, and “do the inspection” using the MLS listing, interview with owner, etc. and take the notes the way you normally would.
Then, when you start working on the actual appraisal you will be starting with the same info you normally have, and your “normal” workflow will not be disrupted.
I think if appraisers would do something like that it could help them maintain more normalcy in these strange times.
And, the more their workflow resembles their normal workflow, the more efficient they will be, with a tendency to make less mistakes.”
This is a very good suggestion. Hope you will ‘take it to heart’ and implement it in your normal appraisal activity.
One more point I’d like to make. There seems to be misunderstanding among appraisers about what the ‘modified’ desktop appraisal is. It IS NOT anything like the hybrid/bifurcated reports promoted by some AMCs and lenders. These reports are entirely done by the appraiser, using whatever public and private data & photos you can find or are given to you.
Please carefully read the ‘desktop’ instructions issued by the various ‘agencies’ and follow them.
Dave Towne on e-AppraisersDirectory.com
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Understood but those who want hybrids will see these modified desktops as a gateway to hybrids.
You can NOT appraise from your desk, might as well use a computer because you do not know functional, external or ACTUAL physical depreciation. MLS photos never show you the TRUTH ! Look up the definition of “as-is” !t says the appraiser is aware of ALL external, functional and physical deprecations. THINK PEOPLE !!! You can not check of as -is ! They say you can, but try putting in an extraordinary assumption and see what they say.
Probably not a good idea to do these types of assignments at the beginning of a RECESSION. If house goes into foreclosure it’s highly likely you will get one those “WTF” letters from the State Appraisal Board. There aint gonna be no V shaped recovery. ITS WORSE THAN 2008
We are capable of making any kind of limits to a job we contract for, and fully explain. Many of us have done it at least verbally. Even when we inspect, their are limits. Did you ever witness the building inspector making a foundation inspection after the house was built?
All of inspections are as limited as our market investigations. They all have to explained.
In changing markets broad explanations are required to justify OUR INTERPRETATIONS. Some times going to distant locations, and differing housing types are justified.
IF we are to be believed we must maintained our own basis of information, when we rely on ” what sounds good” or doubtful sources our CLIENTS will ask even dumber questions which can’t be answered truthfully
We all make mistakes, don’t make them for your convenience, face up do good, don’t give away our rights to serve a client.
We appraisers are going to go from being swamped with refi’s to being swamped with repo appraisals. Wall street sky rocketed today due to irrational exuberance. Wall street and main street are very different. I don’t know how this is going to pan out. Who does for sure, but it’s wishful thinking things are going to land smoothly. The economy have never been stopped in its’ tracks like this.
Your liability is the exact same regardless of the product type. Let that sink in.
Read the Scope of Work! There is no clearly defined explanation of what a “desktop” is other than something we write on. If data is given by another in lieu of an interior inspection, read AO-2 in USPAP for guidenance.