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appraising "fictious" property

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maxine

Thread Starter
Freshman Member
Joined
Feb 5, 2008
Professional Status
Certified Residential Appraiser
State
Illinois
Lender requested an appraisal for a home that does not have an exact parcel number/address/site, etc. Just looking for a value for this particular model. My guess is many homes identical to this will eventully be built in the subject subidivision, but this assignment does not have an actual address at this time. Does USPAP allow? Should I accept?
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
Don't have my USPAP in front of me, but I think you have to accurately describe the property being appraised--with a legal description. I would think this fails that test. Others may disagree. You can't appraise a "model" on any given piece of land and come up with a value and be compliant...at least that is the gist I get from USPAP without re-reading it right now.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
Sure you can. I would doubt it would be for lending without hard identification. You could do an HC if you had to which USPAP recognizes. Just be sure that you identify the house IAW USPAP. You can do that by address, parcel ID, even a photo.

If not for lending then you cannot (or least should not) use the 1004 as that is specifically for lending. BTW, what's the Intended Use of the report?

Sounds like a good one for a Restricted Use Appraisal Report. If not, put it on a General Purpose Residential form. That will keep someone from trying to change it and use it for other houses. If the lender will not take a Restricted Use Appraisal Report or a General Purpose Residential form, and you don't have a long history with this lender to the point you can really trust him, I'd pass on the assignment since I would not want my report floating around out there.
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
Sure you can. I would doubt it would be for lending without hard identification. You could do an HC if you had to which USPAP recognizes. Just be sure that you identify the house IAW USPAP. You can do that by address, parcel ID, even a photo.

If not for lending then you cannot (or least should not) use the 1004 as that is specifically for lending. BTW, what's the Intended Use of the report?

Sounds like a good one for a Restricted Use Appraisal Report. If not, put it on a General Purpose Residential form. That will keep someone from trying to change it and use it for other houses. If the lender will not take a Restricted Use Appraisal Report or a General Purpose Residential form, and you don't have a long history with this lender to the point you can really trust him, I'd pass on the assignment since I would not want my report floating around out there.

I would agree with you slightly, but I interpreted her post to mean that the lender wants one appraisal with NO specific mention of a parcel, address, etc...to serve as an indication of value for a particular floor plan, to be used for multiple addresses/parcels. This would be dangerous, as each different parcel/address could face different externalities that the apprasier couldn't know about. You would have to EA and HC your *** off, and then it becomes a matter of results that no longer border on credible.

Maybe the OP could clear that up for me.
 

Ken B

Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
How do you think "master" appraisals are performed for subdivisions?

You are being asked to appraise a hypothetical improvement on a typical site in the subdivision. You need to determine the characteristics of a typical site and report that information.
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
How do you think "master" appraisals are performed for subdivisions?

You are being asked to appraise a hypothetical improvement on a typical site in the subdivision. You need to determine the characteristics of a typical site and report that information.

I thought master appraisals were used by banks. I thought you appraised one model on a specific piece of property and then the bank made their own assumption about what all the other ones would be worth. I do see---NOW, how what you wrote could be compliant..typical lot, typical characteristics, not too far to stretch the EA and HC envelope.

Clearly, this is an assignment I have never done.
 

George W Dodd

Senior Member
Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Master Appraisals were more common years ago especially with FHA. We appraise one plan on a typical lot and the value of the different options. Haven't seen this type of report used in a while.
Make sure to determine the intended use as part of the SOW.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
I would agree with you slightly, but I interpreted her post to mean that the lender wants one appraisal with NO specific mention of a parcel, address, etc...to serve as an indication of value for a particular floor plan, to be used for multiple addresses/parcels. This would be dangerous, as each different parcel/address could face different externalities that the apprasier couldn't know about. You would have to EA and HC your *** off, and then it becomes a matter of results that no longer border on credible.

Maybe the OP could clear that up for me.

I have done several of those to get fannie mae project approval. All the lots were identical except for the end units. I appraised model 317 A, 320 A, 328 A and 330 A. The "A" represent the specific elevation. Each unit had two elevations but the prices were the same. I Gave a general lot premium amount for end units.
 
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