mike32716
Member
- Joined
- Jan 23, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Florida
Yes, this is the lender's responsibility. I haven't even seen that form in 20 years. Didn't know it was still around.
For what its worth, any condo developer (usually by requirement of their lenders) will have already gotten approval from the various GSEs and FHA for financing in the development so your client probably doesn't need to do much. They just need to ask the developer (unless this is one of those small 6 unit condos or something similar).
IMOHO the analysis of budget is really analysis of the management of a development, and should not be part of any typical condo appraisal unless the appraiser has expertise in the area (few do). Most states have fairly strict condos laws with respect to budgeting and reserves, and I think that is the area that most appraisers should look at to get an idea of what is minimally required. The implication in examining the budget/reserves is that the appraiser has the expertise to find an area of future financial risk that might impact the development and lender collateral. Way outside the SOW in my opinion. I like to state that the sales in the development should reflect the opinions of the market participants as to the adequacy of the management/budgeting/reserves, along with a comment about marketability.
For what its worth, any condo developer (usually by requirement of their lenders) will have already gotten approval from the various GSEs and FHA for financing in the development so your client probably doesn't need to do much. They just need to ask the developer (unless this is one of those small 6 unit condos or something similar).
IMOHO the analysis of budget is really analysis of the management of a development, and should not be part of any typical condo appraisal unless the appraiser has expertise in the area (few do). Most states have fairly strict condos laws with respect to budgeting and reserves, and I think that is the area that most appraisers should look at to get an idea of what is minimally required. The implication in examining the budget/reserves is that the appraiser has the expertise to find an area of future financial risk that might impact the development and lender collateral. Way outside the SOW in my opinion. I like to state that the sales in the development should reflect the opinions of the market participants as to the adequacy of the management/budgeting/reserves, along with a comment about marketability.
