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Michael accepted an assignment from a client who said that they would like an exterior only appraisal of a single-family home in his area. During
- Michael accepted an assignment from a client who said that they would like an exterior only appraisal of a single-family home in his area. During the assignment Michael goes to the property and is viewing the home from the exterior when he sees the tenant he strikes up a conversation as it is a friend from college. During the discussion the tenant tells Michael that the property is divided up into five units. What should Michael do?
- Stay with the original scope of work and evaluate the property as a single-family home
- Develop an appraisal based on an interior inspection to determine that the house is actually divided up into five units
- Go back to the lender and let the lender know the information that has been discovered and let the lender adjust the scope of work
- Inform the lender that the scope of work has changed and determine the highest and best use for the property and prepare a valuation of the property using a hypothetical condition on the five units as well as the single-family property
- Stay with the original scope of work and evaluate the property as a single-family home
- Develop an appraisal based on an interior inspection to determine that the house is actually divided up into five units
- Go back to the lender and let the lender know the information that has been discovered and let the lender adjust the scope of work
- Inform the lender that the scope of work has changed and determine the highest and best use for the property and prepare a valuation of the property using a hypothetical condition on the five units as well as the single-family property
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