- Desk Review - similar to a Field Review, except data is obtained without going into the the field (or location) where the appraisal was completed. It is done behind a desk utilizing the MLS and tax records, but not requiring a physical re-inspection of the exterior.
|
- Drive-by Exterior - is just that and can be accomplished most commonly utilizing the 2055 standard form with various functions and also used as an interior when requested.
|
- Field Review - is a review of an existing appraisal in which the client or lender may want a second opinion for various reasons. A reinspection is commonly completed with photos of the subject and the comparable sales utilized.
|
- Final Inspection - This inspection is performed when a property is under renovation or being built. Once the appraiser is told that it is complete, the appraiser goes to the property and the final inspection is performed according to the request of the lender or owner.
|
- Full Appraisal - 1004 form is most commonly used. There can be 1-3 approaches to value which are:
|
|
|
- Income Approach - utilized when a single or multi family home is leased or rented and is not fully or partially Owner occupied.
|
|
|
- Cost Approach - This is the least reliable approach to value unless there are complete, accurate data to apply. This is also not required by Fannie Mae which are the guidelines utilized after USPAP in an appraisal. Many lenders no longer have appraisers use this approach.
|
|
|
- Sales Comparison Approach - Recently reported sales are analyzed and compared to the subject property, adjusted and a conclusion is made.
|
|
- A full appraisal is utlized for single family, condominum owned properties. Note: A townhouse is a style within a condominium ownership as is a Single Floor unit. A townhouse is not a type of ownership.
|
|
- A full appraisal requires interior and exterior inspections. In the case of new construction or proposed construction, most typically the appraisal is done according to plans and specifications.
|
- Multi-Family (2-4 Units) - these appraisals are completed on a 1025 form and utilize both the income and comparable sales approaches to value.
|
- Purchase Mortgage Insurance (PMI) Appraisal - a PMI appraisal is completed on a full 1004 appraisal form and is done in the same manner. This appraisal is utilized to determine the additional equity in a home that should exceed the original 10% that PMI was purchased with. Banks do not typically call a homeowner and tell them they now have the 20% equity required (which can happen if a home is owned for several years during a rising market). The cost of the appraisal pays for itself it less then a year in most situations.
|
- Re-Certification of Value - After an appraisal is performed, if it doesn't close immediately thereafter, the lender sometimes requires a re-certification of value to see if the market has changed (+/-) and if there has been any effect on the value of the property.
|
- Vacant Land Appraisal - this appraisal is completed similarly to a Full Appraisal, as the comparison approach is utilized based on similar land sales and the most accurate data available.
|
| |
|
|
