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2055 for proposed construction?

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Douglas Mackay

Thread Starter
Sophomore Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Montana
I just received an order from a local client for a 2055 Interior on a proposed log home on 40 acres. I can't find anything in Fannie Mae Guidelines that says that proposed construction has to be on a URAR but it would more appropriate to me.

:?: Any comments from the gallery? :?:
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
I don't see why it couldn't be on a 2055, but I'd sure as heck do a cost approach for MY files if not as addendum to the report...

Actually on atypical and high end construction the market approach may be the most pertenant anyway...IMNSHO...

Good luck
 

Douglas Mackay

Thread Starter
Sophomore Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Montana
Thanks for the input...This home (with the land) has an estimated value of $300,000+/-. Finding log home comps will be a kick. I'm gonna have to tack on a few bucks for this one :?

Doug
 

rtubbs

Junior Member
Joined
Jan 15, 2002
I frequently use the 2055 for proposed construction and properties underconstruction. I complete the Marshall & Swift Square Foot Cost Form and include it in the appraisal. I label the appraisal a "Complete Appraisal".

Good luck on a $300k log house. I'm glad it's you and not me.
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
You can do as a narrative it in granite using a hammer and chisle as long as it is USPAP compliant, postage may be a little on the highside.
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
Douglas,

I would charge the same for a 2055 and a 1004 in this case so, why use the 2055 in the first place? It's gonna be the same amount of work no matter what you do.....or.......am I wrong?
 

Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
Doug in Montana:

You need comps? I got comps! The distance from the subject might be a bit much for even a good UW to accept however. But, hey, you gotta use what you can get. :D
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
One more comment from the gallery, How the hell can you do an interior inspection on proposed construction???
 

bobburnitt

Junior Member
Joined
Jan 16, 2002
I have done many proposed new construction appraisals on a 2055, a Limited Appraisal / Summary Report, for PNC, Washington Mutual, and other lenders.

You must have the plans & specs, but you do not have to do a cost approach if departure has been "properly" invoked. Having the plans & specs is what makes it an 'interior' inspection. You are inspecting the interior by analyzing the plans and specs. You can't do an appraisal on a proposed construction without plans and specs.

The cost approach is one of the biggest bunch of BS going. One thing my Daddy taught me growing up in agriculture was "it doesn't matter what somthing costs, it only matters what it will bring when you get ready to sell it." It doesn't matter if it is cattle, a tractor, a tandem disk, a truck, land, or a house or a hay crop. I know there are some great beleivers in the cost approach, and I know there are rare times when it is the most applicable approach. I have weighted appraisals to the cost approach before, but I don't like it.

If you want to do a cost approach and put it in the file, couldn't hurt, I don't do it.

BB in Texas
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
>>How the hell can you do an interior inspection on proposed construction???<<

Good point, what do you say about proposed construction. Do you check off the interior inspection part??? Inspecting plans and specs is not the same thing imho. In fact, you can inspect the site and inspect the P & S but you do not inspect either interior or exterior.

ter
 
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