Appraisal Checklist (Page 5 of 7) in pdf

Are the comparables similar to

Yes

If No – Appraiser must explain why the specific

45.

the subject ? Compare the

comps where chosen. Adjustments to the

locations, designs, gross living

comparables must be reasonable and should be

areas, room counts, ages,

explained and supported.

conditions and other amenities

of the comparables to the

BE AWARE OF:

subject.

§ Comps outside of the 10%, 15% and 25%

guidelines.

§ Whether the sales price was bracketed.

§ Use of across the board adjustments

(particularly if not explained or supported by

information).

§ Square footage adjustments t h at are not the

same for each comp.

Remember to ask the Appraiser to provide an

explanation for items and/or adjustments that don’t

make sense!

Is our subject a Non-

Yes

If Yes – Check investor guidelines for acceptable

46.

Traditional/Atypical home (Log,

property types.

Earth, Geodesic)?

§ Does it conform to the neighborhood?

§ Has the appraiser provided adequate

information to develop a reliable market value?

NOTE:

§ The property is Acceptable – If the appraiser

cannot locate recent comps of the same design

and appeal, but is able to determine sound

adjustments for the differences to demonstrate

the marketability of the property – based on

older comps, comps in competing

neighborhoods, existence of similar properties in

the market area, etc.

§ The property is NOT Acceptable – If the

appraiser is unable to find any evidence of

market acceptance and the property is so

significantly different that value cannot be

established.

Has the subject had any prior

Yes

If Yes –

47.

sales within the 36 months

§ Is there a substantial increase in value?

preceding the appraisal date?

§ Is it reasonable?

§ If not, appraiser must provide further information

on previous sale and any repairs/renovations

along with dollar amount of repairs/renovations.

Have the comps had any prior

Yes

If Yes – Is there a substantial increase in value? Is

48.

sales within the 12 months

it reasonable? If not, appraiser must provide

preceding the appraisal date?

further information on previous sale and any

repairs /renovations.

** Look closely at the comparables and ask yourself “would the purchaser have considered these as alternatives to the subject property?”

RECONCILIATION

ACTIONS/COMMENTS

NOTES

49.

Is the appraisal made “subject

Yes

If Yes – Condition for property

to completion, repairs or

completion/repairs/inspections.

inspections”?

50.

Is the appraisal less than

Yes

If No – Appraisal cannot be more than 12 months

twelve months old? Will it be

old at time of closing otherwise a new appraisal

at the time of loan closing?

will be needed.

FNMA

§ If appraisal is over 120 days, (regardless of

whether the property was proposed or existing

construction) the appraiser must inspect the

exterior of the property and review current

market data to determine the property has not

declined in value since original appraisal.

§ If it has declined a new appraisal is required.

§ If it has not declined an update to the appraisal

is allowed, using the exterior inspection and

knowledge of current market conditions.

FHLMC

§ If appraisal is over 120 days – the appraiser

must provide an update to the appraisal

indicating property has not declined (or)

§ 180 days if construction is completed after

mortgage application.

51.

Is the market value supported

Yes

If No – Why do they not support the value? Is it

by the comparables?

logical to request more comps? Are new comps

available based on Appraiser’s comments (i.e.

less than 25% built up)?

Intellectual Property of RMIC

Page 5 of 7

Last Revision 10/ 31/07

Appraisal Checklist Page 5

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