Verusmc.com



VERUS MORTGAGE CAPITAL APPRAISAL REVIEW GUIDESUBJECTDoes the subject property address match the documentation in file such as the loan application, purchase contract, etc? If yes validate address via USPS address validator. Is the owner of record consistent with the loan file documentation? If refinance the borrower should reflect as owner. If purchase does the owner match the purchase contract? CONTRACTDid appraiser review the sales contract? Appraiser must review the sales contract on all purchase transactions. Does the information in this section agree with the information on the sales contract? NEIGHBORHOOD AND SITEPay attention to situations which could adversely affect subject values such as rural properties, property values declining, over supply, marketing time > 6 months. Appraiser may need to comment on reason(s) and its affect on the subject’s value. Is the subject’s value within the neighborhoods price range? If no appraiser to comment on its effects on the marketability of the subject. Is the present land use predominately residential and similar to the subject’s use and is the present land use stable? If no appraiser must comment. Is the subject zoned legal non-conforming or illegal? If legal non-conforming, ensure property can be rebuilt if destroyed. Are there any negatives comments regarding the site? If so, verify noted condition will not affect the marketability. Is the subject located on a private road? If so, obtain maintenance agreement. Be aware of acreage and any possible guideline restrictions. IMPROVEMENTSIs there evidence of infestation, dampness, settlement in the foundation? If so, the appraiser must comment. Are there any negative comments in the improvements section if the appraisal is not subject to repairs? If yes, the appraiser may need comment further. Are there any physical deficiencies or adverse conditions that affect the livability, soundness or structural integrity of the property? If so, is the situation addressed? Pay attention to any improvements/remodeling mentioned by appraiser the past 1 -5 years and their impact on the final value and/or any recent increase to value. SALES COMPARISON APPROACH Did the appraiser indicate number of comparable properties currently listed and sold in the neighborhood? If no request from appraiser. Are comparable sales located within the subject’s neighborhood based on location (urban, suburban, rural)? If no appraiser to comment. Are the comparable sales dated within six months? If no the appraiser must address. Are the comparable sales similar to the subject in location, design, gross living area, room counts, age, condition, etc? If not, the appraiser must explain why the comps chosen were utilized. For condominiums at least one comparable sale should be outside of the subject’s complex. Be aware of total adjustments exceeding 15% for net and 25% for gross adjustments as referenced in Verus Mortgage Capital loan eligibility criteria. Add-ons (garage/barn/pool/etc) are addressed and any adjustments are not excessive. Watch for ineligible condition(s) such as C5, C6 or Q6. Complete an independent analysis of the information and documentation provided on the appraisal focusing on the four items below. Review photos of subject. Does the subject appear to need repairs? If so and the appraiser did not require repairs the appraiser must comment on observed issue and possibly provide cost to cure. Complete research via on line tools such as Zillow, Google, etc on the comparable sales and compare exterior and interior photos of the comparable sales to the subject to ensure they are not superior. Review sales history and listings in the subject’s immediate neighborhood with online tools such as Zillow, MLS, etc to ensure best sale comparable(s) were utilized by appraiser. Review street map that identifies subject location as well as the sale comparable(s) and verify comps are not clustered together in a superior neighborhood, separated from subject by man-made barriers such as major roads/highways, etc. RECONCILIATION Is the appraisal made “subject to completion, repair or inspection? If yes condition for completion/repair/inspection.COST APPROACHIs the land to value ratio typical for the area? If the site value has been provided ensure the land-to-value ratio is not to high for the subject’s neighborhood. Is the indicated value by cost approach in line with the sales comparison approach? If no appraiser to address. ADDENDA Are all required addenda attached to the appraisal which include map, sketch, photo’s?Watch for adverse comments on any of the addendaAre the correct appraisal form(s) used? For example, condominiums should be form 1073. Small residential income property appraisal report (form 1025) should contain form 1007 single family comparable rent schedule, etc. ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download