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HUD Requirements

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Julia Young

Sophomore Member
Joined
Feb 23, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Has there been changes to FHA appraisal guidelines for inclusion of the cost approach? Can someone give me chapter and verse or even an URL to specifics on when it is or is not applicable, relative to subject's age.
 

EDWARD BERRY

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Arkansas
ME thinks Cost A. is required if less than 1year and on all "To be built"

Old BEN V. will have chap & verse.

Good luck-ed
 

Ben Vukicevich SRA

Senior Member
Joined
Feb 9, 2002
Professional Status
Certified General Appraiser
State
New Jersey
Old Ben V....????

I'm a spritely 49.......

Actually, you have to do a Cost Approach on a national cost form, citing pages for the costs, for any home under 12 months. Most use Marshall Swift and their 1007 Form for that. Now, to your other question.....HUD requires a Complete Appraisal, Summary Report so you can't depart. If the home is over 12 months and if the Cost Approach is applicable and necessary, then you must do it in the box on the URAR. Now, do your FHA peers complete the Cost Approach for homes over 13 months....probably not, but I'm not going there......the Cost Approach advocates will come and take me away... :D :D


Ben
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Ben: You're own the money.

That being said, I throw a Cost Approach at it even if it is a FHA (Always have to show site value even if cost approach not used). That way, if they change it to conventional, it's ready to go.

Roger
 

Ben Vukicevich SRA

Senior Member
Joined
Feb 9, 2002
Professional Status
Certified General Appraiser
State
New Jersey
Roger,

Good point.. about having to include the Site Value in the Cost Approach section of the URAR even if the balance of the Cost Approach is not completed. Condos being the exception of course..no Cost Approach or Site Value required.

Ben
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Julia,

Open your hymnal (4150.2) to Chapter 4, Verse 5.

I think this gives the information you're looking for in print. Once you've read it (and memorized it, of course!), go back and read the post by "Old Ben V"..........or "Spritely Ben V" ( depending upon your perspective -- :mrgreen: ) so you can attempt to combine the written word with common sense.

Good luck!
 

Julia Young

Sophomore Member
Joined
Feb 23, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Written Word vs. Common Sense??
Surely you jest! :lol:
(thanks all) This follows my line of thinking.
 
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