• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Interesting VA Appraisal Set For Next Week

Status
Not open for further replies.

DonRico

Senior Member
Joined
Nov 26, 2002
Professional Status
Certified General Appraiser
State
South Carolina
I have a very interesting Purchase Appraisal set for next Wednesday. I'd like to verify a few things on this one....

The Subject is a Log Cabin, and sits on just over 11 acres, The home was built on-site by "professional" log builders, and finished to a high level inside based on MLS Photos.

1 --To verify the VA's stance on large Parcels, I found in Pamphlet 26-7 Chapter 11 Section 12 the following.....
" VA does not set a limit on the number of acres which the property may have."
This would put to rest the old "5 acres" myth. Is this "no limit" still the current stance ??
And I seem to remember some required comment about.....
" the amount of land seems reasonable for the subject Market."

2 -- I have found some recent Sales on similar large Parcels, but you guessed it.........no Log Cabins. I can provide Comparable Sales with similar Functional Utility based on GLA and Bedroom count.
But if they're looking for 3 Sales of Log Cabins within the past 90 days -- they're going to be sorely disappointed.
Do I need at least 1 Sale of a Log Cabin, just to prove Market Acceptance ??

Anything Else that I need to consider on this ??

The MLS Photos of the Subject look magnificent, I actually can't wait to see it.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I'd find one log home comp for sure. I might seek other unique built homes such as geodesic domes, A frames, etc. as a proxy for functional obsolescences. And I would look for similar site sizes and I would add a cost approach with land sales to demonstrate the value of the site. Expect double the work not less.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
The VA doesn't require you use a log as a comp but the lender might. I, typically, try to include at least one log home as a comp. As to parcel size, try to use similar if you have them, ie, 1 acre to 1 acre, 5 acre to 5 acre, etc. I haven't had a log home to appraise in quite a long time party because I quit doing appraisals in the mountains outside of my home county.
 

DonRico

Senior Member
Joined
Nov 26, 2002
Professional Status
Certified General Appraiser
State
South Carolina
I've been digging deep into the MLS this afternoon ( raining like crazy outside). I believe I have the Parcel Size comped out pretty well. But I'll be darned if I can find any Log Homes or Domes or A-Frames.
Generally speaking, how far back in time should the research cover without setting off alarm bells in VA Headquarters ?? This Market began it's strong leg up starting around summer of 2013......is 3.5 years too far back to go for a Log Home ??
What is a reasonable distance from the Subject ?? The 1-mile guideline is useless here (nothing but woods within that radius) ??

A Cost Approach might not produce useful results --this thing was assembled on-site with the crane and a full crew. VA doesn't want a Cost Approach.

I would want to cite some vacant Land Sales that illustrate the Value here.
 

Eli

Elite Member
Joined
May 12, 2007
Professional Status
Certified General Appraiser
State
Tennessee
Your questioning what you need to do for credible results. You have been given options. VA wants credible results. I am not an expert in log homes. They remind me of car washes. Sometimes the sales comparison approach needs help from the income capitalization approach or cost approach.

Request a fee increase and you have a small chance of getting it, but you have been given good advice already imo.

It's complex. If you go back in time, then compare then to then to demonstrate difference between conventional and log home or A frame or whatever.

I would be on the phone with the log home kit manufacturer or the builder if I could Monday morning step one.
 
Last edited:

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
A Cost Approach might not produce useful results --this thing was assembled on-site with the crane and a full crew. VA doesn't want a Cost Approach.
The strength is supporting land value, and the difference in market extracted total accrued depreciation and straight line depreciation is proxy for functional obsolescence. Obviously you need an equally impacted property of similar age to calculate accrued depreciation. I would go back three years if necessary to find comps to calculate accrued depreciation.
 
  • Like
Reactions: Eli

Eli

Elite Member
Joined
May 12, 2007
Professional Status
Certified General Appraiser
State
Tennessee
Land value as if vacant to its highest and best use is crucial. All comps the same way. I would both go back on my data sources and hope the log kit manufacturer or builder could help me. One little step at a time. You are obviously going to need some non-log home comps since you don't seem to have any within the past 12 months. That's just one little problem.
 
Last edited:

DonRico

Senior Member
Joined
Nov 26, 2002
Professional Status
Certified General Appraiser
State
South Carolina
Yes, all very good suggestions, Confirming what I thought was a good approach. I'm going to go thru the MLS again today looking for Log Homes specifically. The Time Adjustment might very well be a plus sign, given the Market Activity over the past few years. I will include Land Sales as support, probably in a Narrative format.
I will say this much.....that little corner of the county is going to be a boom-town over the next few years. This is where the Volvo North America Plant is being built to manufacture the new S60. They are already spreading some money around out there. But my assignment is not to predict the future.

Fee Increase ?? Probably wouldn't get much more than the standard $425. It averages out, I had 2 cookies last week......subdivisions less than a mile from my house.

Thanks for your help Gents. This is like a big Appraisal office, where you ask the guy on the other side of the room "What would you do with this one ?"
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
I've been digging deep into the MLS this afternoon ( raining like crazy outside). I believe I have the Parcel Size comped out pretty well. But I'll be darned if I can find any Log Homes or Domes or A-Frames.
Generally speaking, how far back in time should the research cover without setting off alarm bells in VA Headquarters ?? This Market began it's strong leg up starting around summer of 2013......is 3.5 years too far back to go for a Log Home ??
What is a reasonable distance from the Subject ?? The 1-mile guideline is useless here (nothing but woods within that radius) ??

A Cost Approach might not produce useful results --this thing was assembled on-site with the crane and a full crew. VA doesn't want a Cost Approach.

I would want to cite some vacant Land Sales that illustrate the Value here.


You may need to expand your search area to other counties in order to locate a lot home. We have some counties here is East Tennessee where there are few log homes, but the surrounding counties may have some. Would a potential buyer be willing to live in another county with a log home and large acreage? Think about it that way.
 
  • Like
Reactions: Eli

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
I've been digging deep into the MLS this afternoon ( raining like crazy outside). I believe I have the Parcel Size comped out pretty well. But I'll be darned if I can find any Log Homes or Domes or A-Frames.
Generally speaking, how far back in time should the research cover without setting off alarm bells in VA Headquarters ?? This Market began it's strong leg up starting around summer of 2013......is 3.5 years too far back to go for a Log Home ??
What is a reasonable distance from the Subject ?? The 1-mile guideline is useless here (nothing but woods within that radius) ??

A Cost Approach might not produce useful results --this thing was assembled on-site with the crane and a full crew. VA doesn't want a Cost Approach.

I would want to cite some vacant Land Sales that illustrate the Value here.
I have appraised several Log Homes for VA. Never needed a Log Home Comp. But, when I did a Conventional a few years ago I had the same issue you have. i went to a Log home dealer and asked for any sales they might have. They provided a list of sales for the area in the past year. I simply put that list in the report to show market acceptance and the lender was happy as a pig in ****.:flowers:

And, if it helps, VA will accept a sale that is well over a year old to show support.
 
  • Like
Reactions: Eli
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks