According to eppraisal.com's Realty Thoughts blog (click here), they've partnered with professional appraisers across the country to provide "drive-by" appraisals by certified appraisers. [See also Realty Time's article "Appraisals are just a mouse-click away".]
Through their Appraisal Network product, once site visitors have taken a snapshot view of what their home is worth (the eppraisal) they can order a "FNMA 2055 Drive-By, which is a limited scope appraisal of a single-family home (including units in condominium or PUD projects). Drive-by only with no interior inspection."
eppraisal.com is trying to fill a void between online property valuation (Zillow, etc.) sites that can only give consumers a quick estimate of the value of a home and something that a consumer can actually take to the bank. [their claim]
From their blog comments, Erik Hersman, who is apparently a company spokesman says: "We sat back and really looked at what our user base was coming to eppraisal.com for and realized that many were wanting to find that first snapshot, but also wanted to get a “real” appraisal done. Anyway, we think it’s a differentiator and puts us squarely where we want to be with our professional real estate partners.
Whether you want to remove PMI, buy a home or improve one, let one of our professional appraisers (in your neighborhood) give you the real and local market value. Our appraisers complete a drive-by appraisal, complete with picture of the home, by looking at more than just historical sales. They use their local knowledge of the area, zoning decisions, city ordinances and home/land development plans to determine a true market value of a home. Source: eppraisal.com Appraiser Network
But can they REALLY take that appraisal to the BANK?!
Click below to read on . . . .
There's That Pesky USPAP again! - Here's what the ASB's January 2006 Q&A has to say about appraisers that have been engaged directly by the homeowner:
Question: I was contacted by homeowners who want me to perform an appraisal of their home to be used for a loan at a federally regulated financial institution. What are my responsibilities in this potential assignment?
Response: It is an appraiser’s responsibility to disclose to the homeowners that a lender or its agent is required by Title XI of FIRREA to directly engage the services of an appraiser in a federally related transaction. If the homeowners still want to engage you, your disclosure allows you to accept the assignment.
Additional information can be found in Advisory Opinion 25, Clarification of the Client in a Federally Related Transaction and the October 2006 Q&A on Intended Users & Intended Use.
I went through the steps that I could to try to get an eppraisal and then order a "drive-by" appraisal. The interface is pretty slick in that as soon as I entered an address, the appropriate fee for this product was displayed.
Naturally, they didn't cover the Bloomington, IL area (surprise!) so I wasn't able to test the accuracy of their eppraisal model.
I also went looking on their site for exactly WHO they are and where they're located? I think that this site was originally designed for Realtors and sales agents looking for a "lead generation" product. That's typically what online valuation products are designed for. I couldn't find any reference on their site as to who the parent company is or even in what country they're based?
They say they have a network of appraisers but I'm not even sure where that "vendor base" is drawn from? If I ordered a "drive-by" appraisal how would I be SURE that I'm getting someone that is familiar with MY area?
Finally, they're offering a FNMA 2055 "Drive-By" form for single family homes and condominium. Is this the CURRENT FNMA 2055 [3/05]? That form clearly states in the certification and limiting conditions that it's to be used ONLY for single-family homes (not condominiums or manufactured homes) and the intended use and users are lender clients.
I think that eppraisal.com is "over-marketing" their product just a TAD! In order to not mislead consumers, I think that they need to be a bit more forthcoming about the actual uses that their appraisal can be put to and what "industry standard" form it will be delivered on!
Author: Brian J. Davis, RAA - Brian Davis & Associates - Brian has over 23 years of appraisal experience in Central, IL and hosts the Appraisal Scoop blog and the WinTOTAL Users Group an email forum for appraisers
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