| The Louisiana Road Home Program has been ordering | | | | Program was paying for a full appraisal I would |
| appraisals to determine the pre-Katrina value of the | | | | measure every property but that is not the case and |
| affected properties. As the owner of a residential | | | | it's simply not feasible - it would take forever. Of |
| appraisal company, along with my wife Wendy, we | | | | course at this point most people think it's taking forever |
| have been getting several of these orders. | | | | anyway! |
| Specifically, they order a Form 2055 which is a Fannie | | | | ***If you feel that the pre-Katrina value of your home |
| Mae Desktop Underwriter Quantitative Analysis | | | | is less than what it should be, check the square |
| Appraisal Report. In the appraisal business we refer to | | | | footage on the Road Home Appraisal to see if it |
| it as a "short form" as it's not quite as in depth as a full | | | | matches with your previous paperwork if you have it. |
| length single family appraisal. You basically arrive at the | | | | The square footage used is living area only; therefore, |
| final determination of value the same way you would | | | | garages, basements, patios, storage, etc are not |
| with a full form; it's just not as detailed. | | | | included in this. Those areas are given value elsewhere |
| For example there are three approaches to value: | | | | on the form. . As far as quality and condition I usually |
| The Cost Approach | | | | give folks the benefit out the doubt on that as well. |
| The Income Approach | | | | As much as I listen to Walter Leger on the Garland |
| The Sales Comparison Approach | | | | Robinette show on WWL radio, I'm still not exactly |
| The 2055 form leaves out the cost approach and the | | | | clear on what LARHP, LRA, ICF do and how they |
| income approach is only used for income producing or | | | | coordinate. From the appraisal perspective they have |
| rental properties. | | | | just changed companies. |
| The reason I'm brining this is up is because I've heard | | | | We were brought it by eAppraiseit LLC in Poway |
| people calling the talk radio shows concerned that their | | | | California which is owned by First American Financial |
| properties would be undervalued using this short form | | | | Corp. They were brought in by ICF which is in Fairfax, |
| appraisal. If their properties were undervalued, it was | | | | Virginia. EAppraiseit hired a company called JVI which |
| more likely because someone was unfamiliar with their | | | | is somewhere in Florida. JVI hired a company called to |
| particular neighborhood. | | | | accept and review the appraisals. I think I have that |
| It's not the form's fault! | | | | straight. |
| When we first started, I would actually measure the | | | | I guess JVI was fired or lost their contact because |
| properties but it just wasn't feasible with all the | | | | now we submit our reports to a company in |
| properties we had to do. On most of the applications | | | | Grammercy called Hammerman and Gainer, Inc (HGI |
| there is a square footage estimate. I'm not sure if the | | | | or HNG). At least they are local and can understand |
| number came from the applicant or if it was calculated | | | | the neighborhood differences. |
| from a Road Home Inspector. | | | | I spent about a month appraising properties in Lafitte. |
| ***that's the guy who determines your damage | | | | Trying to explain Lafitte to some chick in Boston with |
| ***I'm the guy who figures out what it was worth on | | | | proved difficult and presented unnecessary |
| 08/28/2005 | | | | headaches that I don't have anymore with HGI. |
| If the square footage provided seems reasonable, I | | | | I spent one week on Treme and was asked to go |
| usually give folks the benefit of the doubt and I use it. | | | | back to Lafitte. Then I did Marrero's Lincolnshire and |
| Most of the square footage estimates I've seen were | | | | Westminster. |
| accurate, but some were obviously inflated. I pretty | | | | For now, I'm working on Laplace and Kenner. |
| much know from experience about how much living | | | | To protect yourself, you may want to consider |
| area a house has by looking at it. Either way, we | | | | ordering your own short form appraisal. Some of our |
| research the house, the street, and the neighborhood. If | | | | call-in clients are people who question the value of their |
| we can't find data on the subject property, we do | | | | Road Home appraisal. Not any we did mind you! Most |
| know what types and sizes of homes conform to the | | | | appraisers I know charge $150 -$200 for a 2055 short |
| neighborhood. If that doesn't work or for whatever | | | | form appraisal. Doing this will give you the peace of |
| reason I can't be sure, I'll measure the house | | | | mind that your home was appraised fairly by the Road |
| (sometimes you have to measure a slab or frame if | | | | Home Program and you'll know if your square footage |
| the house was razed. | | | | was in the ballpark. |
| If I had the time and energy, and the Road Home | | | | |