Appraiser Requirements

General Requirements

Arivs does not have any company overlays besides the standard USPAP, agency, and individual investor requirements. We do expect appraisers to support adjustments and provide detailed explanations above and beyond boilerplate comments. Below are a sampling of requirements included as a reminder of commonly overlooked items.

General Appraisal Requirements

  • Appraisers must be certified Residential Appraisers or better, unless specified otherwise.
  • Make contact with a contact person within 24 hrs if there is a problem that would delay the inspection and completion of the appraisal.
  • Contact Arivs AMC before completing assignment on a different form than what was ordered (for example, a manufactured home should not be completed and submitted without prior approval if the product ordered was for conventional 1004).
  • Deliver completed report to Arivs AMC website only. Do not forward to any outside party unless instructed by client or Arivs AMC.
  • UAD Compliance is required. Please run your software program’s review for UAD to ensure all report are UAD compliant.
  • Failure to communicate in a timely manner regarding email requests and/or phone calls will be subject to reassignment of order.
  • Completed reports (PDF and XML) are required to be uploaded to the website. Reports delivered to company emails will no longer be uploaded for you without prior approval.
  • Please do not include an invoice with the appraisal. If needed, you may upload the invoice to the Arivs website as a separate document.
  • Provide specific comments detailing the makeup and quality of construction for all basements, additions, enclosures, and outbuildings. Also please indicate the marketability for said area in the subject’s marketplace and indicate if it is typical for the market.
  • Detailed sales comments explaining all departures from typical guidelines are required. These include but are not limited to: comparable sales over 90 days, comparables over a mile away, and larger gross adjustments. When providing an explanation for departure, it is also helpful to provide a narrative of the subject’s surrounding location and market (for example, is the subject located in an infill subdivision?).
  • If the included CLOSED comparables do not provide support for any of the subject features, please provide detailed comments explaining how the adjustments were derived. If possible, comments should specifically reference paired sales, statistical analysis, parameters of your market research, etc.
  • If research or the subject inspection reveals evidence of any additions or modifications which have added square footage to the GLA, the appraiser must provide the due diligence necessary to determine whether the construction was legally permitted.
  • If the subject is now an ILLEGAL USE as a result of the unpermitted addition, please STOP and NOTIFY US (please note that appraisers will be fairly compensated for their time if the order is canceled).
  • WHENEVER the subject shows evidence of or is determined to have had a garage conversion or room addition, the following questions must be addressed in the report:
    • Was the conversion/addition permitted? Please provide the data source.
    • Is it legal per local zoning?
    • If not, how does the local market react to non-permitted and/or illegally zoned garage conversions/additions? Does the market consider them to contribute value?
    • Please provide detailed commentary and make the report consistent with the local market's reaction to these findings.
    • Include and identify comparables with similar additions.
  • Provide a description of the addition. Include commentary on the quality and makeup of the addition or enclosure. Also include flooring type, wall type, and other comments which describe the addition.
  • Complete the cost approach if applicable but, if not, state the value of the site. Estimated Remaining Economic Life and site value is always required even if cost approach is not deemed necessary.
  • Comment if the site value is greater than 30% of the overall market value and whether this is typical. All manufactured home appraisals require a cost approach.
  • Please type the subject to and conditions of appraisal items in bold so they are easy to find within the appraisal.
  • Include actives/pending when deemed necessary and always include 2 actives and/or pendings when subject has been noted to be in a declining market and stated as so in report. Generally speaking, it is beneficial to add listings to show market trends and add support for your concluded value.
  • Exterior photographs: Includ clear, descriptive photographs showing the front, back, both sides, and a street scene of the subject property and the front of each comparable. The subject and all comparables must be appropriately identified.
  • MLS photographs are acceptable only in addition to the appraiser’s photo. The appraiser should provided a specific explanation for why the MLS photos were included in the report (for example, comparable behind a gate or otherwise not visible from street).
  • Interior photographs: At a minimum, the report must include photographs of the following: the kitchen; all bathrooms; main living area; examples of physical deterioration, if present; and examples of recent updates, such as restoration, remodeling, and renovation, if present. (We also recommend pictures of each bedroom.)
  • Note: Interior photographs on proposed or under construction properties may be taken by the appraiser at the time of the inspection for the Certification of Completion, and provided with the Form 1004D.
  • All appraisal update and/or completion reports must now be reported on the 1004D form.
  • At a minimum, a photograph of the front of the subject property must be included when completing an appraisal update (form 1004D).

*This is not an exclusive list. All appraisals must meet all USPAP quality control standards and agency guidelines.

Individual Agency Guidelines

Some reminders of the agency guidelines and investor overlays:

FHA Requirements

  • The subject must include a functioning kitchen.
  • Utilities must be on and all systems functioning. Include a comment in the report stating that the utilities were on and all systems were functioning.
  • Head and shoulders inspection of the attic and crawl space must be performed.
  • The subject must include proper flooring in all living areas.
  • Please note specifically in the report if the subject conforms to minimum HUD guidelines.
  • Must adhere to local government requirements.

USDA Requirements

  • Please make sure the following comment is included in the report: THE SUBJECT MEETS HUD/FHA MINIMUM PROPERTY REQUIREMENTS AND COMPLIES WITH HUD HANDBOOK 4000.1.

Conventional Requirements

Per Fannie and Freddie Mac:

  • The subject must include a functioning kitchen.
  • Must have a FHA number.
  • Comment on whether or not the utilities are on and all systems are functioning at the time of inspection.
  • Any potential safety issues or hazards needs to be "subject to" please.

Additional Conventional Requirements for Chase

  • In order to gain a better understanding of the subject property's location/neighborhood, an aerial photograph of the subject property and immediate neighborhood, from a reliable source (such as Google Maps), must be included in the appraisal addenda. This will help to ensure that no information that could change the value or marketability of the property goes unnoticed, such as a nearby nuclear power plant, railroad, or airport.
  • Include a farm list with all comps looked at, please do not include a price range in the search parameters.