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ADDITIONAL COMMENTS:

THE SUBJECT APPRAISAL WILL BE COMPLETED UNDER FEDERAL USPAP GUIDELINES. DISSEMINATION OF ANY OR ALL OF THE REPORT BY THE CLIENT EITHER ORALLY OR IN WRITTEN FORM TO ANY OTHER LENDER./CLIENT/BORROWER, ETC., IS CONSIDERED PERMISSION FROM THE CLIENT FOR THE APPRAISER TO DISCUSS DETAILS OF THE REPORT WITH THE THIRD PARTY WHO HAS OBTAINED SUCH INFORMATION WITHOUT THE APPRAISER BEING IN VIOLATION OF USPAP.

APPRAISALS PERFORMED FOR HUD/FHA ARE NOT INTENDED TO PROTECT THE BUYER. THEY PROTECT HUD.  MANY HOMEBUYERS MISTAKENLY BELIEVE THAT A HUD APPRAISAL AND SUBSEQUENT INSPECTION(S) ARE A GUARANTEE THAT THE PROPERTY IS FREE FROM DEFECTS WHEN, IN FACT, THE APPRAISAL ONLY ESTABLISHES THE VALUE OF THE PROPERTY FOR MORTGAGE INSURANCE PURPOSES.  THE SAME APPLIES TO APPRAISALS PERFORMED FOR THE VETERANS ADMINISTRATION (AKA., VA).  THE APPRAISAL ONLY ESTABLISHES THE VALUE OF THE PROPERTY FOR THE VA. 

BUYERS NEED TO SECURE THEIR OWN HOME INSPECTION THROUGH THE SERVICES OF A QUALIFIED INSPECTOR AND SATISFY THEMSELVES ABOUT THE CONDITION OF THE PROPERTY TO BE PURCHASED.  IF AVAILABLE,  IN A TIMELY MANNER, THE HOME INSPECTION REPORT SHOULD BE PROVIDED TO THE APPRAISER; THIS AFFORDS THE APPRAISER THE OPPORTUNITY TO MAKE VALUATION ADJUSTMENTS AS NEEDED.  (FROM HUD HANDBOOK 4150.2, PAGE 5.3, DATED O7/01/1999).

THE APPRAISER IS NOT TO BE CONSIDERED AN EXPERT IN ENVIRONMENTAL, STRUCTURAL, PEST CONTROL OR MATTERS OF FLOOD ZONES.  ALTHOUGH NO PROBLEMS MAY BE NOTED IN THE APPRAISAL CONCERNING THESE MATTERS ONLY AN EXPERT IN SUCH FIELDS CAN MAKE A DETERMINATION AS TO THE EVIDENCE OF ANY OF THESE PROBLEMS RELATING TO THE SUBJECT PROPERTY.  IF ANYONE HAS A QUESTION CONCERNING ONE OF THESE PARTICUALR MATTERS IN RELATION TO THE SUBJECT PROPERTY REGARDING ADVERSE OR NEGATIVE CONDITIONS, THEY SHOULD SEEK THE ADVISE OF AN EXPERT IN THAT PARTICULAR FIELD THAT OFFERS SUCH WARRANTED AND/OR A GUARANTEED INSPECTION. 

AN INSPECTION FOR THE APPRAISAL IS MADE ONLY TO ASCERTAIN THE SIZE, CONDITION, QUALITY, ETC., AS THEY RELATE TO APPRAISAL MATTERS - THIS IS NOT THE SAME AS AN INSPECTION BY EXPERTS IN THE ABOVE-MENTIONED FIELDS.  IN PERFORMING THE APPRAISAL LIMITED INSPECTION OF THE PROPERTY, AREAS THAT ARE READILY ACCESSIBLE ARE VISUALLY OBSERVED AND THE REVIEW IS SUPERFICIAL ONLY.  THE INSPECTION IS NOT TECHNICALLY EXHAUSTIVE AND DOES NOT OFFER WARRANTIES OR GUARANTEES OF ANY KIND.

THE HIGHEST AND BEST USE OF THE SUBJECT PROPERTY IS RESIDENTIAL BECAUSE:  (1) THE INCOME FROM THE STRUCTURE WOULD BE THE HIGHEST FROM BOTH AN INCOME APPROACH AND MARKET VALUE APPROACH,  (2) THE SITE IS ZONED RESIDENTIAL,  (3) THERE IS NO DEMAND FOR A HIGHER VALUE USED IN THE IMMEDIATE AREA,  (4) MOST OTHER USES ARE PROHIBITED BY COVENANTS.

THE PURPOSE OF THE APPRAISAL IS TO ESTIMATE THE MARKET VALUE OF THE SUBJECT PROPERTY FOR LENDING PURPOSES ON BEHALF OF THE CLIENT TO WHICH THE REPORT IS ADDRESSED.  THE USE OF THE APPRAISAL BY ANYONE OTHER THAN THE STATED CLIENT FOR ANY PURPOSE IF PROHIBITED.