Estimated Value Or Loan Amount?

[jskinny]

I am a licensed appraiser working towards certification.
I recieved an appraisal request that looks like it may have a value of around $1,000,000. The loan amount is around 300K. As a licensed appraiser, with the possibility that the value will exceed $1,000,000, should I accept the order? In other words: is it the "subject's value" or the loan amount that dictates weather or not a licensed appraiser can accept a request with a possible value over $1,000,000.
Thanks to all who respond.

 

[Pamela Crowley (Florida)]

The answer to your question has been debated a few times here. The answer that is important to you will come from your own State Appraisal Regulatory Agency.

 

[Kevin Mc]

I would send it back.

While you can certainly do it (loan amount under a million), not knowing the answer to your own question leads me to believe perhaps you aren't ready to strike out on your own.

 

[PropertyEconomics]

The answer to your question has been debated a few times here. The answer that is important to you will come from your own State Appraisal Regulatory Agency.

Isnt it Transaction amount and not property value?

I agree with Pam .. call your state board and ask the question .. they are the ones with the hangmans noose if you get it wrong.

KevinMc ... ... the debate about this is very strong even among the most solid minds with tons of experience.

 

[jskinny]

Thanks

Thanks for the help. I will check with the state. I appreciate the thoughtful replies.
I've been on my own for 4 years. The question is a moral question more than anything else that arises from the value being right around the $1,000,000 mark. I work with 2 certified appraisers who I will hand off anything clearly over $1,000,000. I think when judgemental comments are posted, it's a waste of everyones time.
Thanks to those who actually helped.

 

[RSW]

I have always been taught that it is the tranaction amount. But, I agree with Pam. Contact your own State Appraisal Regulatory Agency.

Scott

 

[Kevin Mc]

KevinMc ... ... the debate about this is very strong even among the most solid minds with tons of experience.

While I'll grant you there may be debate, for GSEs, most of the time transaction value dictates who can do what. Most states follow those guidelines. I think the "debate" to the contrary is weak. While not meaning to upset you Jskinny, it is safe to say that until you ask your own state board what the state guidelines are, No one can answer your question.

 

[Brad Ellis]

j,

It is always the transaction amount vs. the value estimate unless your state, like California, deems differently.

The real problem comes when there is a sale- is it the sales price (which is a transaction) or the loan (another transaction).

I believe the loan amount will rule since theat is the regulated transction amount.

Naturally, you never know the value until you are done with the appraisal, right?

Brad

 

[George Ellerman]

I am a licensed appraiser working towards certification.
I recieved an appraisal request that looks like it may have a value of around $1,000,000. The loan amount is around 300K. As a licensed appraiser, with the possibility that the value will exceed $1,000,000, should I accept the order? In other words: is it the "subject's value" or the loan amount that dictates weather or not a licensed appraiser can accept a request with a possible value over $1,000,000.
Thanks to all who respond.

You can do it as long as the borrowed amount is under a million.

 

[The Warrior Monk]

[FONT=arial, helvetica, sans-serif][FONT=Arial, helvetica] (m) Transaction value means:
(1) For loans or other extensions of credit, the amount of the loan or extension of credit;
(2) For sales, leases, purchases, and investments in or exchanges of real property, the market value of the real property interest involved; and
(3) For the pooling of loans or interests in real property for resale or purchase, the amount of the loan or the market value of the real property calculated with respect to each such loan or interest in real property.

http://www.FDIC.gov/regulations/laws/rules/6000-1700.html

That's what the Feds say. Your state may have stricter requirements. It is possible that the client also has their own guidelines.
[/FONT][/FONT]