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Email From VA Concerning Cost Approach

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RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
I have only been on the VA panel for about 6 months now and I received an odd request from a Lender. They wanted me to put the size of each section of the manufactured home in the cost approach even though the cost approach was not completed. I informed them that the cost approach was not a VA requirement and they said the request was a Lender requirement. They then sent me an email from the VA they had received concerning the cost approach. The following is the email from the VA. It is very interesting.

 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
I have only been on the VA panel for about 6 months now and I received an odd request from a Lender. They wanted me to put the size of each section of the manufactured home in the cost approach even though the cost approach was not completed. I informed them that the cost approach was not a VA requirement and they said the request was a Lender requirement. They then sent me an email from the VA they had received concerning the cost approach. The following is the email from the VA. It is very interesting.

That's the way it has always been. Also, Fannie Mae does not require the cost anymore. The way I see it, if the cost approach is "necessary" to provide a credible appraisal report then I would do it. It is almost never necessary.

Given the fact the lender has to cough up the extra money for that approach, they usually change their minds in a hurry.
 

CindyR

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
i had the same request a couple months ago. i really do not consider it a request to complete the cost approach. it is just a data element on the manufactured home form. and since the sizes of the sections are part of the property specifications (and public records) i can see they may be more relevant to some lenders. i certainly would not consider charging extra to fill in the dimensions of those 2 or 3 simple little rectangles.
 

norapp

Member
Joined
Jul 11, 2016
Professional Status
Certified Residential Appraiser
State
New York
Hi Sandpiper,
I am also a NY appraiser. I stopped accepting manufactured home orders about 2 years ago. Where I am located (Adirondack Region) there were so many foreclosed manufactured homes I started feeling very uneasy about assigning value to a type of home where the odds of loan default was so high. I don't know what you should do about this case but just keep in mind the appraiser is the first one looked at when loans go south. Be very sure you can support value and have good comps....Sorry. Just reread OP and I thought you were the OP.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
They wanted me to put the size of each section of the manufactured home in the cost approach even though the cost approach was not completed
Are they actually asking you to complete a "cost approach"? And if I read this right they say the client can request the CA but the lender must pay for that part of the appraisal as a separate fee and the Vet does NOT pay for the CA or any other extra that the lender might want....If so price it for a $100 or so more and bill them separately. :) I can do that easy enough.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I think you could put in the size of the sections without completing a cost approach and it wouldn't be a big deal to do.
 

BRCJR

Elite Member
Gold Supporting Member
Joined
Sep 20, 2005
Professional Status
Licensed Appraiser
State
Virginia
Was a building sketch included in the Appraisal Report?

If so, they can use a calculator and do the math themselves.
 
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sandpiperapp

Senior Member
Joined
Apr 5, 2011
Professional Status
Certified Residential Appraiser
State
New York
I have never had to appraise a MH, and in downstate NY, I have never seen one, so I am unfamiliar with them.
I am on the VA panel and at times I have had lenders request additional items and or comments that are not VA requirements. If a lender were to request the cost approach on a typical home where I do not believe it is necessary for credible results, I would just say no. On those rare occasions that I have a new home being bought by a Vet, I have included the cost approach, because I considered it neccesary even if the VA did not.. For some items that were requested that were not VA requirements I have offered to do it for an additional fee and the lenders have always said no.
 
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