FHA 203k appraisal - do i need to do 2 appraisals?

[williame]

i am contemplating accepting an FHA 203k appraisal assignment. the last one i did was about 10+ years ago. i have reviewed the FHA Handbook 4240.4 and it indicated that 2 separate appraisals were needed for this program: an "as-is" appraisal; and a "subject to completion" appraisal. is this guideline currently in use?? also, it states the total fee can not exceed 1.5 times the 203b fee?? please clarify. thanks!!

 

[Howard Klahr]

Yes, you need to perform two appraisals. However, you only need to deliver one report. An appraisal report may contain more than one value and as you noted FHA requires two values - "as is" and "as completed".

 

[Mike Boyd]

Yes, you need to perform two appraisals. However, you only need to deliver one report. An appraisal report may contain more than one value and as you noted FHA requires two values - "as is" and "as completed".

Howard...............are you sure of that? It would seem that an appraisal when considerable work has to be done would be "subject to" while an appraisal prior to the work being done would be "as is".

 

[Mike Boyd]

Check with your client. They may need only one or the other.