Bulk contract for multiple homes

[Terrel L. Shields]

If there are 12 separate properties and they want 12 values,

If this involves a bank, then there is a development issue. Simply valuing 12 properties separately with 12 reports still may be violating the bank rule that applies to any multiple property such as this. Sounds like leased buildings to me, and for more than 4 units, you need to go through the discounting of the properties.

 

[Dublin ohio]

If this involves a bank, then there is a development issue. Simply valuing 12 properties separately with 12 reports still may be violating the bank rule that applies to any multiple property such as this. Sounds like leased buildings to me, and for more than 4 units, you need to go through the discounting of the properties.

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What is all the confusion about. They are 12 existing individual single family properties. I have been involved in these a couple of times. They use various appraisers to get them complete in a reasonable amount of time.

 

[Terrel L. Shields]

They are 12 existing individual single family properties.

So? If they are all one LOAN, then the LOAN is commercial and the interest rate is an appropriate COMMERCIAL rate. A banker once told me that when they have someone holding multiple properties under one LOAN, the examiners like to see a discount applied to the properties, assuming that to dispose of the houses will take time.

 

[Mark K]

If this involves a bank, then there is a development issue. Simply valuing 12 properties separately with 12 reports still may be violating the bank rule that applies to any multiple property such as this. Sounds like leased buildings to me, and for more than 4 units, you need to go through the discounting of the properties.

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This isn't a tract development with unsold units.

Also, the market value is for a current date, not based on demand in the future.

I've done it a few times and will do it again if asked.

The last one I did was 9 vacant lots in a subdivision being sold to one custom home builder. The bank wanted 9 separate values so they would have a value on each when it came time to release a lot from the mortgage when a home was built and sold.

 

[The Warrior Monk]

The long and short of it is that the sum of the market values of individual properties, and the market value of the portfolio of properties, and not necessarily the same value. The intended use needs to be identified.

 

[Terrel L. Shields]

his isn't a tract development with unsold units.

I know a bank that was doing these separately as appraisals but the overall loan was bundling all the properties and the bank examiners flagged the loan. That's when I got called in to revalue the dwellings and the vacant lots not yet built.

 

[Tom4value]

I guess no one bothered to note that the OP is a certified residential appraiser. This assignment belongs to a certified general appraiser.

 

[Dublin ohio]

I guess no one bothered to note that the OP is a certified residential appraiser. This assignment belongs to a certified general appraiser.

Why?

 

[Tom4value]

Why?

Beyond the scope of what a residential certified appraiser os qualified for.

 

[Dublin ohio]

Beyond the scope of what a residential certified appraiser os qualified for.

The op's assignment was to appraise 3 out of 12 single family properties involved in a "bulk" purchase. Why would that require a CG