Definition Of "complex" 1-4 Family Residential

[BigBlueGA]

As taken from the Georgia Real Estate Appraisers Licensing Handbook:

over a period of 24 months at least 2,500 hours of real estate appraisal experience of which at least 625 hours were in complex one-to-four units residential appraiser work;

This is in reference to the requirements to become certified residential. Anybody know what the definition of a "complex" 1-4 family residential property is according to GREAB? (complex being the operative word) Any help much appreciated...

- Brandon

 

[Mike Garrett RAA]

IN MY STATE all income producing property appraisals are considered complex in that you should do an income and expense analysis and comparable rent schedule. These can be done by an appraiser with a license only if they are 1 - 4 family. Above that number of units requires either a certified residential appraiser or certified general appraiser.

My rule is....if you have to ask how to do it....it's complex! :rainfro:

 

[Rich Hahn]

My rule is....if you have to ask how to do it....it's complex!

dont get me started... :rainfro:

Rich

 

[Otis Key]

Let's see - where would I go to ask that question? Maybe Jay Leno? Naw - The feds? Naw - that's another post. Hmmmmmmm - how about --- don't tell me - I'll get thereeeeeeeeeeee :asleep: :asleep: :asleep: :asleep:

 

[Oregon Doug]

This is a more complex issue than it might seem and we have been debating the matter for the past four years that I can remember - with no conclusive answer. I think we ought to forget it. What's complex to one appraiser in a certain market area may not be to another appraiser somewhere else. I might appraise a double wide wobbly box on 20 ac of F1 zoned forest land or a custom log home on a white water river acreage site with riparian considerations and not sweat - but heven help me if I have to appraise a 2 bedroom condo in town!

Maybe it should be based on something like "price", "value" or "tranaction value" (whatever that really is). Let's say $1M. Down there in southern CA, a $1M home may not be unusual (non complex) but to an appraiser in Fargo ND, I'd bet a $1M home is something pretty special.

In the end, it's pretty uninforceble due to the lack of a clear cut uniform definition.

Oregon Doug

 

[BigBlueGA]

IN MY STATE all income producing property appraisals are considered complex in that you should do an income and expense analysis and comparable rent schedule.

Gah if I have to go back through all of my files and find all of the income producing properties I will go mad (GA experience logs make no effort to differentiate between complex and regular properties).. maybe I should outsource it

This is a more complex issue than it might seem

No pun intended?

Let's see - where would I go to ask that question? Maybe Jay Leno? Naw - The feds? Naw - that's another post. Hmmmmmmm - how about --- don't tell me - I'll get thereeeeeeeeeeee

?????????

 

[Brad Pack]

If my memory serves me, FIRREA allows the lending institution to determine just what is and what is not a "complex" property.

 

[BigBlueGA]

Sort of found my answer... as defined in the Idaho licensing handbook...

A Complex Appraisal: was one that relied to a significant degree on all three approaches to value (cost, income, and sales comparison); or, was an appraisal that did not have the characteristics of a non-complex appraisal as defined below.

A Non-Complex Appraisal was one having all of the following characteristics:
a. There was an active market of essentially identical properties (the same type or nearly the same type), and
b. Adequate data was available to the appraiser, and
c. Adjustments did not exceed the typical range found in the market of essentially identical properties, and
d. For residential properties, the contract sales price fell within the market norm (median sales price) for homes or lots within the same area

So essentially any out-of-the-ordinary assignment would qualify as a "complex" assignment regardless of dependence or use of cost and income approaches... (as defined as not being a non-complex appraisal. In addition as noted before, any income producing property would qualify as complex.

However what about an appraisal in which a cost or income approach was performed but not given heavy weighting/consideration? I would assume that this assignment would not qualify as complex... ????

 

[jeanwillick]

In that case, 95% of what we do is "Complex" :rainfro: