8 unit property appraisal and license qualification

[timindp]

Question: Can a Certified Residential Appraiser appraise an 8 unit (commercial) property for a NON federally related transaction? Use would be to determine market value for private assertation.

 

[George Hatch]

Your state lays out its jurisdiction. My state allows it for non FRTs but some states don't.

 

[timindp]

Yea I knew that. I was looking at Florida and it isn't clear. Can't really find the info

 

[Fernando]

In CA, 8 unit bldg is considered commercial so Certified Residential Appraiser generally wouldn't be able to do it.
Certified Residentials don't have experience to have done enough 8 unit bldgs so best not to do it.

 

[sputnam]

If you can't find it in the FL board rules online, call them and ask. There is no 8 unit form... and I suspect that most Licensed and Certified Residential Appraisers don't have the compentency to produce credible assignment results.

 

[The Warrior Monk]

Question: Can a Certified Residential Appraiser appraise an 8 unit (commercial) property for a NON federally related transaction? Use would be to determine market value for private assertation.

As others noted, it depends on the state. In my state of NY, the answer is that if you hold a license, you either need to hold a CG credential to appraise this property type, or be supervised by a CG.

In states where a CR would be allowed to appraise these properties for non-FRT, I would strongly advise that person not to appraise the property unless they are competent to appraise these properties. These properties are typically purchased as investments.

 

[TMG]

1025 form only goes up to 4 units.

So.....how were you going to appraise it?

 

[glenn walker]

In CA, 8 unit bldg is considered commercial so Certified Residential Appraiser generally wouldn't be able to do it.
Certified Residentials don't have experience to have done enough 8 unit bldgs so best not to do it.

You dont have the experience but many do Greg Boyd and I had done many over the years on Non-FRT transactions and sometimes they are easier than doing 2 to 4 units. BUT as George stated it depends on each particular States licensing laws.

 

[BRCJR]

1025 form only goes up to 4 units.

So.....how were you going to appraise it?

Narrative.....

 

[George Hatch]

The old 71a and 71b multi-family appraisal report forms are perfectly adequate for appraising all but the largest multi-family properties. The irony is that since they are pre-USPAP there's nothing to contradict WRT backfilling them with the current USPAP housekeeping requirements. Obviously you won't be using the GSE forms for the certs and limiting conditions; you'll do that in a narrative addendum.

I don't use those forms for multi-family any more, but I do use a form. I've never once written a 5-25 unit multi-family on a narrative, although I do use narratives for properties larger than that. Prior to the format I've been using for the last 13 years I was doing most of my multi-family assignments on the 71b.