My New Blog

I have been asked twice over the past year to complete appraisals involving "exterior only" inspections of the subject property.  Each time found some data in public records which made me question whether an "exterior only" appraisal would be reliable.  The reason I am writing this is to make buyers, lenders, and fellow appraisers aware of the risks of "exterior only" appraisals.

The first assignment was for the purchase of a single family residence in Wrighstville Beach.  I noticed a significant difference between the square footage shown in tax records (945 sq ft) and on the MLS listing for the property (1350 sq ft).  I contacted the lender and suggested an upgrade to a "full appraisal" which would involve an interior and exterior inspection.  I measured the dwelling and found the living area to be 952 sq ft.  I called the listing R.E. agent who said "I must have not pulled his tape measure tight".  I would bet he never visited or measured the property.  The potential buyer was living in Washington DC at the time.  Was the buyer under the impression he was buying a 1300+/- sq ft home?  I bet I would have had some questions to answer if I hadn't measured the home and appraised it as if it were 400+- sq ft larger than it really was.

The second assignment involved what Brunswick County tax records state is a "off frame modular home".  I completed an interior and exterior inspection and found the dwelling to a be a manufactured home.  I then spoke with the owner who told me they had their home in Myrtle Beach at one point and moved it to its present site.  I bet you can't do that with a modular home!  Again, if I had not completed an interior inspection of the property I would have misled the user of my appraisal report. 

Be aware of the appraiser's assignment conditions.  My recommendation would always be to obtain an interior inspection on all properties unless not feasible due to hostile occupants etc.