Housing Bill; what does this mean to appraisers?

[OSU Beavers]

Sounds like a USDA Rural Housing or an Oregon Bond loan with the recapture on appreciation.

 

[stefan olafson]

Mike,

When we appraise the house in our town that is being sold we appraise the 'fee simple interest' in the property, the bundle of rights which include the right to sell the property in the future. Isn't that stick in the bundle of rights now shorter than the others???


If you or I were to purchase two similar properties each, one with no restrictions on the sale in the future and one with a requirement we share the appreciation with someone, is the value at purchase for both these properties going to be equal???

I'm not too sure they would be?

 

[Gregory Beck]

Past

Now that the bill has been past what does this mean for appraising? will we start seeing a lot of FHA work? How is the re-financing going to work for the homeowner. Keep getting bits and pieces from the news, could someone clarify or direct to website.

thanks

Did you mean passed?

 

[Mztk1]

Mike,

When we appraise the house in our town that is being sold we appraise the 'fee simple interest' in the property, the bundle of rights which include the right to sell the property in the future. Isn't that stick in the bundle of rights now shorter than the others???


If you or I were to purchase two similar properties each, one with no restrictions on the sale in the future and one with a requirement we share the appreciation with someone, is the value at purchase for both these properties going to be equal???

I'm not too sure they would be?

If I am buying a house that the seller has to split profits of sale with the government (likely not even known to me) how is that going to effect what rights I am buying and how much I would pay?

 

[Eli Weiss]

Mike,

If you or I were to purchase two similar properties each, one with no restrictions on the sale in the future and one with a requirement we share the appreciation with someone, is the value at purchase for both these properties going to be equal???

I'm not too sure they would be?

The properties don't have the restrictions, the title has the restrictions, and they have no effect on a future buyer, restrictions are on the lien that is being paid off by the new buyer, the buyers lender will have to check the lien amount and title restrictions to decide how much of the funds go to the seller and what amount goes to HUD for their split of the appreciation, but the restriction will not stay when the title conveys.

 

[J Grant]

the only restriction is on the original owner who refinanced with FHA, once they sell and share their profit ( if any) with the govt, the new owner, and any subusequent owner buys the property fre and clear, without the obligation to share profit with govt. It is a one time thing, for original owner only. There are no restrictions on future sale.

 

[Riick]

...If you or I were to purchase two similar properties each, one with no restrictions on the sale in the future and one with a requirement we share the appreciation with someone, is the value at purchase for both these properties going to be equal???...

Good question - if we were looking at a SALE.
These will be refinances.

 

[Eli Weiss]

Good question - if we were looking at a SALE.

Huh? care to explain why?

 

[Riick]

^^^^
Whole discussion revolves around the new housing bill.
"Share in the appreciation" happens only during 1st year after a REFINANCE.
The Bill says nothing about sharing appreciation in a new SALE

 

[Eli Weiss]

Riick, that was not what Stephan asked...

Read his question again:

Mike,

If you or I were to purchase two similar properties each, one with no restrictions on the sale in the future and one with a requirement we share the appreciation with someone, is the value at purchase for both these properties going to be equal???

I'm not too sure they would be?