Bias lies on both sides of the fence!

[rijman]

Don,

Using a different Limiting Conditions and Appraisers Certification won't change the definition of market value, which is my real concern. I would not use a different definition of market value in non lender related reports. I just want the definition altered for lender reports to indicate the report was completed using the lenders form while following the lenders guidelines and the end result may or may not reflect market value.

Regards,

 

[Terrel L. Shields]

Rij said

ask us to hit market value using their forms and guidelines. There is a difference.

Amen, as I, too, have long argued. Had a call from an appraiser about an old rural home, circa 1907, never updated except to install a bathroom, not occupied in 10-15 years. Going FHA on 2 acres. I had appraised on 120 ac. as $10/SF contributory value 2 years earlier. Selling price is $55,000, about 3 times what I attributed to the improvements.

W/O supporting sales within 25 miles, not even but 1 other home within 1 mile, comps will be in town, etc. as "proof" this house is worth the price. Major major items to repair. Only a sink in kitchen. Floor and walls need completely redone. Siding is chipped. Whatcha bet it appraises for $55K because this appraiser is expert at making pigs fly?

Frankly, I would not even use a form report if I were appraising it for an inhouse loan. And likely would fall far short of the sales price. I just appraised a similar house on 300 acres about 10 miles away which was occupied. The sales contract stipulated that that dwelling be demolished as a condition of sale...think about it. Are people leaving "money on the table" because they are unwilling to defraud a willing government backed agency via using the standard URAR and "tricks of the trade?"

ter