400) REO Quick Sale
09/03/08
Dear Henry,
How would you handle the issue of exposure time on the market for an REO "quick sale"
Robert Ebert bob@ebertappraisal.com
Dear Robert,
If the time you use for an REO sale is not the typical marketing time in that market area, then you are changing the definition of market value with all the repercussions associated with doing this. The best thing to do is to ask the lender/client what the marketing time should be and if it is different from typical marketing time, make sure they understand that you are changing the definition of value. This is quite common and is often what the ERC requires, which is one reason they use their own forms with their own definition of value.
H2
How would you handle the issue of exposure time on the market for an REO "quick sale"
Robert Ebert bob@ebertappraisal.com
Dear Robert,
If the time you use for an REO sale is not the typical marketing time in that market area, then you are changing the definition of market value with all the repercussions associated with doing this. The best thing to do is to ask the lender/client what the marketing time should be and if it is different from typical marketing time, make sure they understand that you are changing the definition of value. This is quite common and is often what the ERC requires, which is one reason they use their own forms with their own definition of value.
H2
383) URAR vs ERC
08/12/08
Dear Henry~
Are there any major requirements or differences between a relocation appraisal and a typical mortgage loan appraisal? I was asked if I am qualified to appraise for a relocation company. If they are looking for market value, I can't understand what difference there would be in a relo versus a typical appraisal. Can you explain?
Thanks!
Jodie bridgecityappraisal@msn.com
Dear Jodie,
If they are looking for market value and the scope of work dialogue does not develop any other requirements (such as a marketing time that is different from that which is defined on the URAR) then I don't think there is any difference. However, most relocation companies use the ERC form, which is quite different from the URAR, and will produce a value estimate that is usually different than what would be produced if you made a regular appraisal on the URAR. It is not the form itself that makes the difference. The USPAP says that the report format should not affect the value. However, it is the different definition of value and different marketing time that will affect the value estimate.
H2
Are there any major requirements or differences between a relocation appraisal and a typical mortgage loan appraisal? I was asked if I am qualified to appraise for a relocation company. If they are looking for market value, I can't understand what difference there would be in a relo versus a typical appraisal. Can you explain?
Thanks!
Jodie bridgecityappraisal@msn.com
Dear Jodie,
If they are looking for market value and the scope of work dialogue does not develop any other requirements (such as a marketing time that is different from that which is defined on the URAR) then I don't think there is any difference. However, most relocation companies use the ERC form, which is quite different from the URAR, and will produce a value estimate that is usually different than what would be produced if you made a regular appraisal on the URAR. It is not the form itself that makes the difference. The USPAP says that the report format should not affect the value. However, it is the different definition of value and different marketing time that will affect the value estimate.
H2
18) 120-Day Forecast
12/10/06
Dear Henry,
I've followed your work for years. Thank you for your (real world) expertise in the appraisal field. What is your opinion on ERC'S 120 day forecast requirement? I'm of the opinion if the property is marketed according to its neighborhood -- not an
over-inflated listing price -- the property should sell within a typical market time appropriate for that area. However, the Relo company insists on a 120 day forecast. The crystal ball method.
Thanks in advance for your response.
Tammy Laughlin 3galvin@bellsouth.net
Dear Tammy,
ERC apparently has decided they need this 120 day forecast. They are the client and if you want to do work for them, you are going to have to give them what they want. [In general, I feel you should give the client what they want, as this is good marketing.]
That said, keep in mind that the USPAP has very specific requirements for prospective appraisals, which in my opinion is what you are being asked to make. You have to make a bunch of assumptions about the market and the property and your opinion of value is conditional upon these assumptions turning out to be correct. Since the validity of your future value estimate depends upon the working of your crystal ball, I hope you have some gypsy blood in your family.
H2
I've followed your work for years. Thank you for your (real world) expertise in the appraisal field. What is your opinion on ERC'S 120 day forecast requirement? I'm of the opinion if the property is marketed according to its neighborhood -- not an
over-inflated listing price -- the property should sell within a typical market time appropriate for that area. However, the Relo company insists on a 120 day forecast. The crystal ball method.
Thanks in advance for your response.
Tammy Laughlin 3galvin@bellsouth.net
Dear Tammy,
ERC apparently has decided they need this 120 day forecast. They are the client and if you want to do work for them, you are going to have to give them what they want. [In general, I feel you should give the client what they want, as this is good marketing.]
That said, keep in mind that the USPAP has very specific requirements for prospective appraisals, which in my opinion is what you are being asked to make. You have to make a bunch of assumptions about the market and the property and your opinion of value is conditional upon these assumptions turning out to be correct. Since the validity of your future value estimate depends upon the working of your crystal ball, I hope you have some gypsy blood in your family.
H2