That’s why I don’t appraise Denver unless I’m really desperate for work…

Zoning and coding, what a chore. And they just expanded the highrise district. Urban is a specialty in itself.

https://www.denvergov.org/content/denvergov/en/community-planning-and-development/zoning/denver-zoning-code.html

Just look at that zoning and in case you’re wondering, yes, it does change block by block in some locations. We’ve got people down there flipping old units in revitalization areas with eminent domain pending and they don’t even have a clue that’s all possibly in place in the not so distant future. Suburbia is where you can just take it easy and primarily only deal with MLS.

“They order field reviews on everything lately. If I can see it, the next completely unbiased field reviewer will too. I am required to take full room pictures. It’s best if none of this comes back on either of us so some simple repairs will go a long way towards better assured qualification and funding of a new loan.”

It’s like the used car auto financing game, but just with much higher stakes. You don’t want to be called back in there to have to renegotiate terms or deal with additional qualification submittal compliance. Go to statements which work with everyday borrowers.

Detailed index and breakdown of all repair requests along with a simple summary. One would have to be a very awful communicator in person and in writing for such a scenario to happen.

See addenda and blank fields throughout the report; How to spot an appraiser who’s either outsourcing, dialing it in, or just does not give a damn.

Agents don’t take the time to read the handbook and most order managers and order assignment clerks have never bothered to read through their own companies chosen funding managers lending policy guidelines. It is a repair request if there is not a functioning upper bath, if there is exposed siding holes, if certain doors and locks do not work, if stair steps are broken, alarms missing, etc, etc. It is not a repair call if they don’t have carpet down or there is spray paint on drywall, etc. Essential utility vs cosmetics.

It’s doubtful most appraisers have bothered to read those documents either. But if you wonder why underwriters call what they do, you’d then naturally be redirected to the various internal lending guideline documents. Always subject to interpretation so if anyone pushes the line of credibility, I’m happy to stack them out repair calls. Then hypo as repaired, often bridges the value gap for aggressive representation. Some appraisers just go with minimum reporting standards then devote follow up time if there are calls and higher attention. Other appraisers seek to provide the full detail consistent service regardless of any presumptions of qualification or quality. That would be your volume vs detail argument, better refined.

The reason you can never predict what they’ll ‘call out’, is because they apply varied level of scrutiny per individual borrower. If that borrower is flexing the grey area of approval on several fronts, then they’ll also often want additional assurance with a more stringent appraisal analysis. Where as if the borrower sails through but somehow still needed or requested the full appraisal, lots of leniency. Call something below average, open door for subjective repair calls. Just one example, these read like simplified short versions of the longer legal codes for those respective fields and various rule sets. Still often 150 pgs+ though. “If you’ve bothered to read one, you’ve read them all.”

https://oaktreewholesale.com/wp-content/uploads/2017/10/Oaktree-Funding-Non-Agency-Underwriting-Guidelines-10-02-2017.pdf

Telling someone like a realtor or homeowner at the time of inspection will only lead to a he said she said scenario.

Next thing you know a homeowner is painting his entire house because you told him to paint one wall.

Speak the truth

Here’s some good ones Jon. How about when the appraiser indicates that a properties zoning compliance is legal, but yet each city seems to devote hundreds of pages to the topic (set backs, height restrictions, etc.). Without calling in a professional surveyor to specifically define the properties boundaries, how do I know if a zero lot line garage is truly only on the subjects lot, and not a few inches or a foot into the neighbors? How about when the condo association has ongoing pending litigation (sometimes years), but yet lenders want appraisers to be the lawyer, judge, and jury and reach a result (effect) when the outcome is unknown.

Forget about basic inspection concerns, the appraisal form itself is littered with career ending landmines.

Seek the truth.

Jon, if the agents “tell you all the time the repair requirements”, why wouldn’t they moving forward remember what’s required, or take an active approach and seek the truth as to what’s required (HUD handbook 4000.1 pages 465-532 / VA Lender guidelines)? How can they represent and advise their client, if it seems they have limited knowledge as to what is going to get looked at by an appraiser?

Seek the truth.

Calling for paint, gutter repair or an outlet fix doesn’t mean calling an expert. Means it’s a FHA issue that needs addressed. The owner, you or even the neighbor can do these simple remedies. But , the owner, you or the neighbor probably can not certify a foundation, diagnose & remedy roof issues or replace a HW heater. Want to know what appraisers look for? Read the handbook.

We are in agreement on this point. You can call for obvious items but should never ‘diagnose’. It’s o.k. to speculate though, that action is helpful because then you can tap into your knowledge base of anticipated likely real world costs. Something is wrong, call in an inspector, here are photos of the obvious indications of such. etc, etc.

The problem with only referring to ‘needs inspection’, is that there is a wide open door for fraud and abuse by interested parties who may hope to sweep this under the rug. Inevitably it is the buyer whom will be least represented and experience the most harm.

That’s why I demand paperwork, an inspection, and stack then vs repaired photos to cya. You should get better at estimates. Over the years I’ve seen all sorts of math whiz applicants. Appraiser hiring should be more focused around practical skill sets. A general contractor would run circles around most appraisers, if they had the appraiser license. If you want to be a better appraiser, learn more about construction and utility systems. How exactly does one competently call value if they have no clue what the sum of the components is really worth?

Cheers.

Truth here. If I saw sparks, I would call for an inspector to tell me the electrical is OK. I just know other appraisers would call for the light switch to be replaced or make some other diagnosis. I have been getting pretty discouraged that appraisers are doing this. I am so encouraged by the comments today that there are appraisers who are NOT trying to be inspectors. I have even had lenders push me on this stuff, telling me to diagnose problems, put the costs to cure, and require certain repairs. Thankfully, they kicked me off their panel. I know values. I don’t know construction techniques/repair techniques. I have to say, I would have no idea what the costs to cure would be on a sparking light switch. Seems that could be from $5 to $25,000.

Yeah it’s such a hassle. I do the same thing for carbon monox alarms, required here in CO, also always want a photo of that. If there is too much though, that’s when I call subject to. Sales are easier to manage because if there is still a few days left I can call the agent to mobilize for a quick turn. Sometimes they don’t mind waiting though, there are all types of possible scenarios. Sometimes they prep the home and miss something. Other times they just send it out there to market and wait to see if the appraiser and/or inspectors call out items or not. If they push the limit I have no problem running a $150 final.

For the article topic, I keep it simple during inspection and write both a brief and then detailed explanation of why repairs were called or assumed away as not being necessary. Because I spend more than 10 minutes racing in and out of a property, I usually have an adequate repore going that I don’t have to be worried about being straightforward and honest about everything. It’s better they get upset right then and there than complain later so I disagree with the article writer on this point. Not everyone is geared for volume with a million lawyers at their disposal.

So you’re the guy whom came before me and I had to look like the bad guy for calling obviously needed repairs to bring a home up to minimum standards. Noted. Get over the legalese glass house thing and come back to the real world. You don’t have to be a genius to know if something is broken or deficient and one presumes most appraisers are at least as smart as the laborers we call in to follow up.

So wrong, SMH. I cannot tell you how many FHA appraisers I go behind that require gutters to be repaired, the property to be painted, a deck that was not constructed properly. Apparently I am doing this correct that I call for experts. Real Estate Agents tell me all the time the repair requirements that appraisers tell them to do. Inspectors should be suggesting specific repairs, not appraisers.

Ross Grannan, Yes, I cannot tell you how many appraisers are doing this. If it does not require an inspection, then I as the appraiser will not be telling someone to do it. Maybe the roof has Flex seal on it. Just as I say I am not an expert in construction all over my appraisal, I will not require repairs to be done that an inspector has not looked at.

Thanks for the response!

Its never easy Ross. Are the missing roof shingles all from one spot? Is the unfinished deck off the 2nd floor main bedroom? By unfinished, is part of the decking missing, or is there no railing? The problem with our industry Ross (there are many), is that the powers that be want to streamline a process (C3, Q4, Neutral, etc.), and don’t want delaying what ifs from the local expert appraiser. They may be able to determine in advance by way of TRID guidelines what the appraisal fee is, but to this point, and they keep trying, appraisers are still free to judge the property during the inspection.

Seek the truth.

No problem EJ. See the electrical boxes belong to 100 Main St, 100 1/2 Main St, and 100 1/3 Main St. Bootleg triplex, where I come from we call that a Monday, and its most likely at the beach and worth 1.3 million.

Seek the truth.

John, your right appraisers are not inspectors and we do need to stay in our lane. That being said, my two examples THIS WEEK (VA loans), are turning on a light switch and seeing sparks and hearing a sizzle as the lights go out, and while looking at windows for broken panes (its required), discovering security bars (bedroom 1 window) that were INSIDE and between horizontal blinds, and curtains (not visible from exterior/or interior doorway) that had NO quick releases. I don’t have to be an electrician to know sparks from the light switch are a problem, nor a fire marshal to determine a single entrance/exit is a problem. Interesting enough Jon, do you know that the VA does not technically require the appraiser to sign off on such repairs (be the expert), but rather allows documentation from the expert as proof of showing the work was done to code / requirement? The issue becomes, does the VA SAR understand the lender guidelines (no further involvement from appraiser required), or are they going to call out on the notice of value for the appraiser to confirm such repairs have been completed?

Seek the truth.

So would call for an inspection for cracked sheet rock, missing roof shingles, an unfinished rear deck? Not every repair issue requires an inspection.