New Appraisal Forms

Fannie, Freddie will require newly redesigned URAR, 2055 and other appraisal forms starting November 1
Starting November 1, 2005, Fannie Mae and Freddie Mac will require newly redesigned appraisal forms for their loans. Since as you know most lenders use Fannie's forms in all cases, not just loans they're selling to Fannie Mae, you'll be seeing a lot of these new forms.
Some lenders have applied for an extension from Fannie Mae that will allow them to accept the old versions of the forms past November 1. Fannie and Freddie have been allowing the new forms to be used in lieu of the old for some time on a voluntary basis. But starting November 1, the URAR, 2055 and other forms you're used to will begin to go away for good, replaced by new versions.
We're ready to use the new URAR, 2055 and other redesigned forms (11 in all), whenever you need them. We hope you consider us your valuation/appraisal experts, and we know that you expect us to get you the reports you need, on the forms required by your company and its secondary mortgage market partners.
Since there's a lot new in the new forms that may impact how you find the information you're looking for in our reports, our scope of work and lead times when you order a report, and even our fees, we want to make sure you're up to speed on the major ways the new forms differ from the old. There are literally dozens of ways, but below are the most important.
What's the bottom line? The new forms require more research and analysis, firmer representations on the part of appraisers, and eliminate the cost and income approaches to value. You and your bank will be getting more useful, solid information, which you may find in different places than you're used to. But you'll still be getting the quality, professional service you expect from us. We won't miss a beat with the new forms and we want to be sure you won't, either.
Features of the new Fannie Mae forms, especially the redesigned URAR and 2055 Exterior Only
More comprehensive research required
Formerly the URAR asked the appraiser if there were any apparent adverse site conditions or external factors, like encroachments, environmental issues or land uses. The new version of the URAR eliminates the word "apparent" and may require your appraiser to search recorded deeds and land records.
The new form asks the appraiser to analyze the sales contract for a property being sold (that is, not being refinanced only) and the sales or transfer history of the property for the last three years.
The new form also asks the appraiser to analyze the sales history for the selected comparables for the previous year.
The new form asks how many properties are listed for sale in the subject's neighborhood and in what listing price range. It also asks for the number of comparable sales in the neighborhood within the last 12 months and their sales price range.
The 2055 form now asks for more data than previously, including an extensive sales history of the subject and comparables, like the URAR. The 2055 is now specifically exterior only. For interior inspections, measurements and/or pictures, please order a 1004 URAR.
New representations
The new form asks whether any part of the land involved in the mortgage transaction is in a flood hazard area. The former form only asked if the house or any improvements were.
The new form asks whether there are any adverse conditions that affect the livability, soundness or structural integrity of the property. As with adverse site conditions, there's no word "apparent" here, so we are likely to be more thorough in our evaluation.
The new form has the appraiser certify that we didn't use comparables that combined a land sale with the contract purchase price of a house.
There is new, stronger language in the form where the appraiser certifies that we were not subject to pressure to "hit a number," with the current assignment or any future work contingent on achieving a certain value. The language in the form says "written or otherwise," meaning we cannot complete the new form(s) if our client asks us whether we can "come in" at a certain value before assigning us the appraisal, or threatens not to pay for completed work if the value isn't at least $X. This has always been our policy and now we will need to certify to Fannie Mae that our client has not asked us to reach a certain value in the report. We take this new representation on our part seriously.
No more cost or income approaches

Preparing For The Winter Season

It happens every year. Summer turns to fall and we're never ready for the change -- and neither are our homes. The coming winter seems to be promising higher fuel costs across the nation, so this year it's really going to pay to grab a weekend and concentrate your efforts on ways to keep your house warmer and your utility bills more affordable. Here's a checklist to help you get started.
___ Check the heating system: A heating system tune-up is always in order this time of year. This should include changing the filter in your furnace; having your ducts cleaned; checking and possibly increasing insulation over ductwork running through the attic or crawlspace; clearing debris and overhanging shrubbery from around outdoor heat pump equipment; and having faulty or inefficient thermostats repaired or replaced.
___ Check insulation levels: Out of sight, out of mind is something that typically applies to insulation, to make it a point to check your insulation levels and improve them wherever you can. Attic insulation should be R-38 – about 12 to 14 inches of blown fiberglass – and can be easily added to by an insulation contractor if needed. Many house do not have any underfloor insulation, so you want to upgrade that area to R-19 to R-25 by installing fiberglass batts between the floor joists.
___ Stop the drafts: A drafty house is not only uncomfortable to live in, it also wastes money. Check all exterior doors, including the one between the house and the garage. Look for daylight between the door and the frame, and especially between the bottom of the door and sill. Replace or adjust any weather-stripping that is damaged, worn, or not making a tight seal. Check the weather-stripping on windows as well, and contact a glass company if you need help with replacement. Now is also the time to freshen up caulking around doors, windows, plumbing penetrations, and anywhere else that heat-robbing drafts can make their way in.
___ Close foundation vents: If you have opened your foundation vents for the summer to allow accumulated moisture to escape, now's the time to close them up again.
___ Check fireplace safety and efficiency: Many people depend on their fireplace or woodstove for supplemental heat, and you want to make sure it's working as well as possible. For conventional fireplaces, give some serious though to installing air-tight glass doors to improve efficiency and reduce drafts. If you already have doors, check and replace the door seals as needed, and adjust door latches and hinges. Now is also a good time to have the chimney cleaned and checked for problems, and to check spark arrestor caps.
___ Check firewood supplies: To get the maximum heat value from your firewood, it needs to be dry. Take the time now to stack your wood on an elevated platform – old pallets work well – and to make sure that the wood is covered and protected from the elements.
___ Pay attention to indoor safety: If you have a gas fireplace, range, water heater, or other appliance that uses propane or natural gas, the possibility of carbon monoxide poisoning from a malfunctioning appliance increases substantially as we close our homes up for the winter. Fall is the ideal time to install a carbon monoxide detector, which are available from many home centers and retailers of heating system supplies. This is also a great time to have your utility company or heating contractor inspect flues, fittings, and other components of your systems for potential problems.
___ Check smoke detectors: Now is the time we start spending a lot more time indoors, and it's the ideal reminder that we need to check smoke detectors. Take the time right now to check the operation of detectors, and to change the batteries. If you have an older house with a limited number of smoke detectors, you also need to install additional detectors outside each bedroom.
___ Check the roof: Examine roofing shingles and flashings, and repair or replace them as needed. A roof that leaks not only has the potential to cause significant structural damage, it also wets insulation, which causes a drop in the insulation's ability to resist heat loss

Homeowner Appraisal Services, SW Washington

Homeowner Appraisal Services

Homeowners need appraisals or appraisal reviews for a variety of reasons, including a mortgage refinance, home equity loans, Pre-listing services, and PMI removal. When you order an appraisal or review from us, you can rest assured that you will get the best in professional service, courtesy, and quality.

1. Refinance / Home Equity

Be sure that you request us if your lender asks you for YOUR choice of appraisal firms. More than likely we are already on their "approved list", and if not we will quickly provide your lender with the necessary documentation to become approved.

2. For-Sale-By-Owner (FSBO) / Pre-Listing Services

It's very hard to be objective about your own home because of your emotional attachment to it. A Professional Appraiser is objective and will tell you what you need to know, not just what you want to hear. In addition to helping you set a realistic selling price so your home will attract buyers, a professional appraisal is very valuable as a negotiating tool once you have a potential buyer. It gives you something concrete to show your buyer. It's an independent third party's opinion of your home's value, and not just you saying how much your home is worth. Potential buyers know you have an emotional attachment to your home and will be far more likely to give credibility to a professional appraiser's value opinion than yours.


3. PMI Removal Appraisals
A popular money saver for homeowners in the last few years is to

get the PMI removed from their mortgage loan, thus saving them money on their monthly payments. PMI stands for "Private Mortgage Insurance". Once your mortgage loan amount is down below 80% of the

value of your home, in most cases you can apply to the lender to have the PMI removed from your loan, which will make your monthly payments go down. We are experienced in helping folks just like you rid them of unneeded and unwanted PMI insurance.


Jeremy Bennett
Certified Residential
Appraiser

“The difference between ordinary and extraordinary is that little extra.” – Barbara Jordan


Bennett Appraisals is a locally owned and operated residential appraisal service.

Typical appraisals include single family residences, multi family properties (2-4 units), and residentially zoned vacant land, for mortgage lending purposes.

Other services provided are valuations for divorce, partnership, tax assessment review, estate planning, zoning, employee relocation and cost vs. benefit analysis.

Clark County; Notice of value

Clark County Department of GIS and Assessment / Notice of Value.

You may have noticed a pesky little mailing from the county concerning your property’s new value for taxation purposes.

What is a notice of value? Property owners receive a notice of value when the department determines there has been a change in their property value. The notice shows previous and current year's values. Current values are used to compute the following year's taxes and include exemptions and deferrals on record.

Who do I contact with questions about the notice and the new value? If you have questions about the value or the data used in its development, please call one of our review appraisers. In-person meetings should be scheduled in advance.

What happens if I don't agree with the review appraiser? You have two options. First you may request an informal appraisal inquiry that will allow you to review and verify the data used to establish your value, e.g., square feet, style of construction, etc. Often, differences are resolved at this point. If you still disagree, you may file a petition with the county Board of Equalization.

What is the Board of Equalization? The Board of Equalization is an impartial citizen board that hears property value disputes and determines assessed value. The board is located at 500 West 8th Street, Suite 19 (lower level). You can call them at (360) 397-2337 for additional information or to request forms.

When do I file the BOE petition? Petitions must be filed with the BOE within 60 days after your notice of value was mailed. To protect your right to appeal, we recommend you file a petition while working with a review appraiser.

How is an appeal processed? After filing a timely appeal, you will be contacted by a review appraiser from the Department of Assessment and GIS who will examine the


appraisal and make a final determination. If you still disagree, a hearing before the Board of Equalization will be scheduled. The board reviews sales evidence submitted by you and the review appraiser, and sets a final value.

For more information you can go to http://www.clark.wa.gov/assesor/

New Appraisal Forms

New Forms!
Earlier this year Fannie Mae released the final versions of the much anticipated new forms. There are eleven new forms which will replace all the major forms we currently use. These new forms will be required on all appraisals performed on and after November 1, 2005. Lenders and appraisers may continue to use the existing appraisal report forms or the test forms released in 2004 until October 31, 2005.
· Uniform Residential Appraisal Report, Fannie Mae Form 1004
· Manufactured Home Appraisal Report, Fannie Mae form 1004C
· Appraisal Update and/or Completion Report, Fannie Mae Form 1004D
· Small Residential Income Property Appraisal Report, Fannie Mae Form 1025
· Individual Condominium Unit Appraisal Report, Fannie Mae Form 1073
· Exterior Only Inspection Individual Condominium Unit Appraisal Report, Fannie Mae Form 1075
· One-Unit Residential Appraisal Field Review Report, Fannie Mae Form 2000
· Two- to- Four Unit Residential Appraisal Field Review Report, Fannie Mae Form 2000A
· Exterior Only Inspection Residential Appraisal Report, Fannie Mae Form 2055
· Individual Cooperative Interest Appraisal Report Form, Fannie Mae Form 2090
· Exterior Only Inspection Individual Cooperative Interest Appraisal Report, Fannie Mae Form 2095

Relocation Appraisal

Time is money. This is never more true than when you or your company need an appraisal of your "old" home when you're relocating to a new area for work.
When you put your "old" home on the market and take advantage of your employer's relocation assistance, you're interested not in the "fair market value" of the home, but its anticipated sales price, typically as soon as possible -- usually not to exceed 120-180 days.But the need for speed doesn't mean the relocation appraisal is a more simple matter than your average lending/mortgage appraisal. Quite to the contrary. It entails special expertise, training and skills on the part of the appraiser or appraisal firm you select.

When we perform a relocation appraisal, we consider recent closed sales but also competing listings in the area as well as pending sales. We offer a forecast of the likely sales price you can rely on, considering the dynamics of the neighborhood at the time of the relocation. All relocation appraisals are reported on the standard ERC Residential Appraisal Report form, the industry's accepted relocation appraisal format.

If you're a relocation services company in need of a local appraiser, look no further.Our professional relocation appraisal service is backed by our superior service, turn time, and knowledge of the market. Whether you're an employee or a service company seeking a relocation appraisal professional, please browse our website to learn more about our qualifications, expertise and services offered.
-->-->
Bennett Appraisals 1695 N 9th Street Washougal, WA 98671Phone: (360) 281-7289 Cell: (360) 281-7289 Fax: (360) 838-0634 E-mail: bennettappraisals@comcast.net

Why Hire a Technically Advanced Appraiser?

We all know them. The guys with pounds of silicon hanging from their belts. Every new gadget that has hit the market in the past 10 years has done time around their waist. Call them geeks. Call them nerds. Call them what you will, but by all means, give them your appraisal business. Why? I'm glad you asked.Appraisers are, by far, the most technical agents in the real estate world. By necessity, they have been drawn into the digital world at a pace not seen by their colleagues. The appraisal process is one that lends itself to technology. And technology has paid significant dividends to those appraisers who have invested in it. These dividends are shared with the appraiser's customers, in the form of shorter turn-around times and a much better final valuation report.OrderingLet's start at the beginning. Millions of real estate transactions are processed each year in the United States. Almost all of them require some sort of appraisal. Technology has allowed savvy appraisers to reduce the amount of work their client's need to order, track and receive appraisals. In the past, the primary mode of interaction between an appraiser and his clients was the telephone and fax machine. Clients would send requests via fax, and then often follow it up with a phone call to make sure it was received. Tracking the progress of the appraisal meant more phone calls - a disruption for both the client and the appraiser.But the modern, technologically advanced appraiser has a better method. Using tools like this web site - complete with the ability to order appraisals on-line - allows clients to shave valuable time off the process of ordering and tracking appraisals. Technologies like a la mode's net.X network are advancing this concept even further, giving its users the ability to not only order appraisals, but track their progress all the way until delivery. No more annoying games of phone tag!Data GatheringThe appraisal process is nothing if not a data intensive process. Appraisers spend a lot of their time gathering both specific information about the subject property and general data about the local market and developing trends. Once again, technology has stepped in to help appraisers. In the past, the home inspection process has been the time consuming and difficult. To top it off, appraisers then had to come back to the office and transcribe their field notes into the appraisal file itself. No longer.Today's digital appraiser has several tools that can aid in gathering data in the field. Starting with tools like a la mode's Pocket TOTAL, appraisers are eliminating the duplicate data entry problems of the past. Tools like the Leica Disto Laser meter are making the measurements more accurate. And software like Apex's PocketApex allow the appraiser to sketch the house on the fly. All of this means that the appraiser can get the report done and delivered to the client in a fraction of the time it once took.On the other side of the data gathering coin is the general data. The Internet has revolutionized the ability of appraisers to get quality data in a fraction of the time it once took. Where once an appraiser would spend hours finding the right location maps and then rubbing on decals, the modern appraiser gets his maps with a few mouse clicks, complete with location markers. And flood maps? Likewise just a few clicks away using services like a la mode's FloodSource. Standardized addressing, accurate postal coding, census tract information, are all at their fingertips. This ensures that the final report is as complete and accurate as possible, requiring fewer call-backs and revisions. A real money saver for busy appraisal clients.Report deliveryThe report is done. Now how is the digital appraiser going to leverage his investment in technology to improve the delivery process? Modern appraisers have forsaken the old print-and-snail mail route for a much more efficient electronic delivery system. Utilizing Adobe's Portable Document Format (PDF) files, an appraiser can deliver a complete, multi-page report, complete with digital photos and maps, through simple e-mail. Now, instead of waiting for the daily mail, or paying for expensive courier services, appraisal customers can simply log into their company email system and retrieve all the appraisals at one time. Without wasting and paper printing the appraisal, it can be routed to the appropriate loan officer or title company in the blink of an electron.More advanced organizations are leveraging a la mode's net.X network to not only order appraisals, but also to manage the delivery process. Before an appraisal is ever delivered, this cutting edge technology reviews the report and ensures that it meets certain guidelines. Have enough comparables been used? Has the appraiser included a statement of limiting conditions? These items can be checked automatically and the appraiser notified of the deficiency without the client ever getting involved. Now, when the final report is received, the client can be sure the appraisal meets all the basic criteria. Once again, costly follow up and revisions are avoided, lowering everybody's cost of doing business.Digital WorkfileIt would be wonderful if appraisers could complete a report, deliver it and never worry about seeing that document again. But one of the purposes of an appraisal is as a legal document outlining the condition of the property at the time of sale. So appraisers must keep their reports for 5 years, allowing them to recall any appraisal at any time to either defend the valuation or to be used in other legal proceedings.Here again, the digital appraiser leverages his investment in technology to improve service. By storing every aspect of the appraisal - notes, sketches, supporting documentation and calculations - along with the appraisal, the professional is able to retrieve that report at any time within the five years and recall just what that report was about. And this data is not stored in boxes stacked 5 deep in some rented warehouse. Instead, the digital appraiser uses technology like a la mode's Digital Workfile to electronically include all supporting documents as part of the appraisal file. These files are stored securely on searchable media, such as a la mode's Vault, where the appraiser can find them in a fraction of the time required in the past. This helps appraisal clients by giving them immediate, virtual access to any appraisal they've ordered within the past 5 years.These are just a few examples of how technologically advanced appraisers are improving the business workflows of their customers. Investing in the right software, services, gadgets and gizmos allows the appraiser to deliver reports quicker, more efficiently and with higher degrees of accuracy. All of which helps keep the appraiser's costs down, and save his clients time and money.
-->-->
Bennett Appraisals 1695 N 9th Street Washougal, WA 98671Phone: (360) 281-7289 Cell: (360) 281-7289 Fax: (360) 838-0634 E-mail: bennettappraisals@comcast.net