I am really irritated today. I did an interior BPO last week. It was a two unit. Separate entrances, separate kitchens, etc. Back in 2000 it was listed for sale as a two unit. The company comes back to me yesterday and says I am wrong - it is a SFR. I e-mail a copy of the former listing and ask if they have looked at my pics because they clearly show separate entrances, two kitchens, etc. She e-mails me back and says they have the original appraisal saying it is a SFR. She is insisting that I change it. I explained that the value will be completely different and it will be inaccurate. She doesn't care. She wants it changed. I will change it and write in the notes that it is a two unit but as requested, it will be evaluated as a SFR and that the value is significantly different when evaluated differently. My problem is that first of all, why would a client want an inaccuate BPO? Why would they waste the extra money to have me do an interior if they don't care what I see??? My second problem is that this is going to take me another 45 minutes to redo the order. I'm not getting paid extra to do it twice. I am just really mad about the situation and think it is wrong all the way around.

Was the 2-unit a conversion change that was never permitted?

I run into this all of the time.Some of these companies are stupid and i am convinced they have some high school kid who took a 1 hour course and is arguing against people who have been doing this for years.

I think it's easier for them to say change your stuff so they don't have to work and correct the problem.

The assessor's records still show it as a SFR. The thing of it is, I believe these banks want to know the current situation of the property, don't they? The house was listed in 2000 as a two unit and the appraisal done in 2002 said it was a SFR. The appraisal was fudged for some reason. Maybe the buyer couldn't get a loan on a two unit so they called it a SFR. That was wrong. Usually the BPO companies are pretty good at taking your explanation but this one is being a real jerk.

Makin' Money,
check the public record what it said SFR or multi, here even if is 2 unit and record say SFR (it would be MIL) not a duplex. It did happend to me with EML it was recorded as 2 units they said treaded as SFR I did follow their instructions; I should know better, 6 months later it came back I had to re-do for free also had to take new pictures. So, I checked the lender who ordered first time, same lender ordered 2nd time after foreclosure, long story short...somebody got freebee...not anymore, better believe it

If that shows SFR call county, they will tell you which is correct

Well you have to realize that the appraisal is King. It doesn't matter whether the appraisal is completely accurate or not. It cost more, was done by a "professional" and holds more value. The banks want the BPO's to match the appraisal info - so they can compare "apples to apples." If the appraisal has a value for a SFH, they can't compare it to your value for a Duplex.

Also, the original appraisal is usually what they based the original loan on, so again they need to compare that original appraisal value to your current BPO value, and see how the market has changed.

The fact that your property appears to have been modified into a duplex, should be used as an adjustment to your value. You should also check the MLS and see if it was listed twice. In my area, we sometimes list a property twice - once as a SFH, again as a Duplex (when it could be used either way - that way nobody skips over it)

Good points. Thanks for your input. It still doesn't make me a happy camper redoing the order though.

I had an irritating one as well!

I just did a full interior BPO and ran into a similar type of problem. The property was a 50+ year old concrete block structure with five 75' lots, that was being used as a day care. This is right in the middle of a residential subdivision and was grandfathered in. The tax records indicated that it was a Day Care.

I did the BPO and they called and wanted me to change it to reflect it being a SFR as that's what the appraisal said!

I flat out told them that I would not change it and I felt as though I was being steered into giving a BPO that was not my own. I told them that it was obvious that the property was being used for commercial activity as they could see the children, the sign and the property setup from the photos that I uploaded! I also mentioned that I didn't appreciate doing an interior BPO on a COMMERCIAL property for the fee that was offered. I would not have accepted if I had known it was a commercial for that price. They said that they did not know it was commercial, or the fee would have been higher.

The BPO company called their customer and they did not know it was being used for commercial activity either. They were under the impression from the owner AND the appraiser that it was a SFR. According to the BPO company, their customer was upset due to the misrepresentation on the part of the owner and the appraiser.

The order was put on hold and I was assured that I would be receiving a higher fee due to the property being commercial.

Scott

We have a number of SFD which were converted to double units with separate doors and kitchens. Often this is done with permit for elderly parents and/or an older child living at home. It is still a SFD.

If you know for fact that both sides are being rented out by an investor or one side ownerd by an owner-0ccupied and the other for profit than you might consider it a duplex.

Probably the lender's issue is that the loan was for an owner-occupied SFD and not for a multi-family owner-occupied unit.

They same would go for a self-contained garage apartment. Here, it is call a SFD with a mother-in-laws quarters or a garage apartment, not a duplex.

The same would go for a SFD used as the commercial daycare. It is still a SFD by title and deed, just being used as a commercial establishment.

The appraiser may be correct. And you were also correct in reporting based on the knowledge you had.

Unless you have overwelming information to the contrary, I would do the work as requested, document your concern over possible issues, and submit it.

on MLS we input this kind property in Residential and Multi, but lender goes by county record and title. Easer to get loan on Single Fam then Multi, unless is owner occupied

I had a different rep start calling me about changing it, blah, blah, blah.... He told me if I had an "evidence" to submit it. I sent him the MLS sheet and he passed it. PHEW!!!! I guess it's all in who you talk to.

Making Money

I am a mortgage broker. For loans, the county/tax records control (most of the time) what a lender will do as far as a loan is concerned.

Unfortunately, if the county records say SFR, then your bpo/cma should be for a SFR.

Alot of homeowners do things to their properties that are "not county permitted" and as such when it is time to do a loan they are disappointed when the lender won't give them credit for their additions/improvements because they were not county permitted.

agree, papa lou, I have two investment property where I couldn't get the loan, (finance by private party) one was add and add on "dis-improvement" I could sell it zillions time - my listing, no one could get the loan on. After all I purchased it day before foreclosure. Took us several months fix it up. Few flaws yet we working on.

Papa Lou - I can understand using county records if there is a discrepency between the MLS and the county BUT when you do an interior BPO and you see what it really is, then I think it makes sense to go with what you know. What if the former owner/appraiser committed fraud to get the loan by changing what the property really is? I think the bank needs to know the true situation and get a true value. I think there are so many ways to look at this situation.

Gig em has made a very good point.

My own residence is considered a SFR, even though it has 2 kitchens and 2 separate entrances. Our town was very specific when we put the addition on for my parents - it is NOT a 2 family and can never be one. We can never rent it out. It is an "in law suite".

The difference is in the interior of the house. It is not separated by a door looking like it leads to another apartment. Instead we've matched our other glass french doors that can be shut for sound privacy but still give the feeling of one residence.

Perhaps that it is what is happening with your order. You really couldn't tell that from the exterior.

Oops, I'm sorry Makin Money. You did say you did an interior. My mistake.

No, this was an interior order. I saw the inside. Also, the former MLS listing said both units were rented. Good point though.

We've had a good number of bpos where the public records show something different from the last listing info or from what looks obvious on the outside/inside. We don't complete a bpo without calling first to see how the bpo company wants it done (normally, whatever their appraisal shows). It's their call. We just make sure to note any discrepancies in the comments. Just because someone puts in two kitchens and calls it a "duplex" doesn't mean that it legally conforms. It's really hard to get the approval for zoning changes here.

Bingo!!!

That happened to me on the Daycare BPO. Lender was NOT happy about the deceit on the part of the owner & appraiser!

I call em as I see em!

Scott

Yes, wscottfunk, that's the way I see it. It is what it is. I do note in the order if there are discrepancies but the value would have been about $25,000 higher if I would have changed it to SFR. They would never get that out of it.

What determines the type of property is the zoning. If you have any questions about what it is, check the zoning with the zoning office. Also, check the deed. It may be a single family attached, if there is a different owner and parcel id for each side.

In general, if the subject has two utility meters, it's a two unit. One meter with seperate kitchens, etc., MIL suite.