Appraising Property Over 1.0

[TIMOTHY LAYTON]

I seem to get mixed responses to a common question. For a licensed residential appraiser. Can you appraise a home worth over 1.0 million as long as the loan amount is less than 1.0 million? I will be certified soon, but run into this problem in sussex.

This question is for Delaware Appraisers

 

[Financially Feasible]

I seem to get mixed responses to a common question. For a licensed residential appraiser. Can you appraise a home worth over 1.0 million as long as the loan amount is less than 1.0 million? I will be certified soon, but run into this problem in sussex.

This question is for Delaware Appraisers

Timothy:

Check out this link: http://dpr.delaware.gov/boards/realestateappraisers/documents/supplement.pdf.

If you have further questions, I'd suggest that you contact someone on the Council: http://dpr.delaware.gov/boards/realestateappraisers/members.shtml.

It was my understanding that the $1,000,000 limit applied to value (since we usually have no hard proof of what the loan amount is - despite whatver the homeowner might tell us...).

 

[Mike Kennedy]

transaction value = loan amount, not value.

 

[Financially Feasible]

transaction value = loan amount, not value.

Then how would one go finding that out? 99.9 times out of 100 the client will not tell you the loan amount (and especially won't give you any hard info stating the loan amount). You can't rely on what the HO says (or shouldn't, anyway!). What happens if you appraise a property for $900,000 where the loan amount is 1.2 million - are you then in violation of licensure law?

FYI: I don't care either way because I'm already CR... but inquiring minds want to know!

 

[TIMOTHY LAYTON]

Good points by all. I do have a certified supervisor who reviews and signs my reports when they go through a management company(which is most of my work) But, he does not inspect the properties. Kind of confusing, i just need to get certified!!

 

[Mike Kennedy]

Here you go Ed:

"Appraiser requires written statement, dated via email with the Originator or Processor's Name, from the Client to confirm whether the Transaction Amount (i.e. Loan Amount applied for) is less than or greater than $1 million. Kindly DO NOT state the actual Loan Amount applied for or ANY estimate of value from any source. Upon review of the Client's transaction value statement, the Appraiser will IMMEDIATELY either accept or decline this Assignment in compliance with New York State Appraisal Licensing Regulations under Executive Law 6(E) . Thank you for your business."

 

[Financially Feasible]

Here you go Ed:

"Appraiser requires written statement, dated via email with the Originator or Processor's Name, from the Client to confirm whether the Transaction Amount (i.e. Loan Amount applied for) is less than or greater than $1 million. Kindly DO NOT state the actual Loan Amount applied for or ANY estimate of value from any source. Upon review of the Client's transaction value statement, the Appraiser will IMMEDIATELY either accept or decline this Assignment in compliance with New York State Appraisal Licensing Regulations under Executive Law 6(E) . Thank you for your business."

Works for me, Mike. Like I said, I don't need to worry about the loan limit (already a CR) but I was just curious about that. Also (and let me precursor this by saying that I have ABSOLUTELY nothing against licensed appraisers), I never understood the reasoning for not just going straight to certified residential. It's only 500 more experience hours, a few more classes (which would only be helpful to you anyway) and it's the same test. I don't get it. Again, nothing against the licensed folks, just curious.