Can a certified residential appraiser appraise a commercial condo unit under $250k?

[Essexfenwick]

I have a job and it’s easy but just need to make sure

 

[Fernando]

What if the appraisal comes over $250,000?
There aren't any under $250,000 around here so I don't have to worry about that issue.

 

[BRCJR]

What if the appraisal comes over $250,000?
There aren't any under $250,000 around here so I don't have to worry about that issue.

Some states use the value and some use the loan amount for the threshold.

 

[glenn walker]

Yes go for it

 

[Essexfenwick]

Thanks guys

 

[Essexfenwick]

What if the appraisal comes over $250,000?
There aren't any under $250,000 around here so I don't have to worry about that issue.

It’s cut and dry on this one. Its retrospective 2021 3 comps at 180

 

[Terrel L. Shields]

What's a commercial condo? Non-residential property? Some states would not allow a CR to do it, regardless value.

 

[BRCJR]

Check your state law...


example of state law/regulations:

18 VAC 130-20-10. Definitions

"Certified general real estate appraiser" means an individual who meets the requirements for licensure that relate to the appraisal of all types of real estate and real property and is licensed as a certified general real estate appraiser.

"Certified residential real estate appraiser" means an individual who meets the requirements for licensure for the appraisal of or the review appraisal of any residential real estate or real property of one to four residential units regardless of transaction value or complexity. Certified residential real estate appraisers may also appraise or provide a review appraisal of nonresidential properties with a transaction value or market value as defined by the Uniform Standards of Professional Appraisal Practice up to $250,000, whichever is the lesser.

"Licensed residential real estate appraiser" means an individual who meets the requirements for licensure for the appraisal of or the review appraisal of any noncomplex, residential real estate or real property of one-to-four residential units, including federally related transactions, where the transaction value or market value as defined by the Uniform Standards of Professional Appraisal Practice is less than $1 million, and complex one-to-four residential units having a transaction value less than $400,000. Licensed residential real estate appraisers may also appraise or provide a review appraisal of noncomplex, nonresidential properties with a transaction value or market value as defined by the Uniform Standards of Professional Appraisal Practice up to $250,000, whichever is the lesser.

 

[George Hatch]

Commercial condos are the tract home of commercial appraising, but there are a little couple quirks.

You might need to do a conventional income approach which will include performing a rental survey, doing a complete income/expense analysis and extracting cap rates.

There could be a lease in effect which can possibly alter the value conclusion. Association dues include some things and exclude some things so the terms between the rental comps may require some adjustment.

Dominant unit of comparison is usually not the sale price itself (like for 1-4s), but the price/sf.

License or no license, the benchmark for the SOW and competency is what the CGs would do who normally appraise such properties.

 

[KONA]

In California, it's the transaction amount if involved in lending.