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Is This A Commercial Assignment?

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mp2277

Junior Member
Joined
Mar 21, 2008
Professional Status
Certified Residential Appraiser
State
Virginia
I am certified residential and have been asked to appraise an REO or soon to be HUD REO SFR property. It is a older farmhouse that has been surrounded by commercial development in the past decade or so. It is bounded by a four lane highway, a service access road, a Lowes and adjacent retail stores and some storage buildings or smaller shops of some kind. Clearly HABU is not SFR.

I have asked for clarification of the SOW for the assignment but so far it seems they want the HABU stated as it is, commercial, and the appraisal to reflect the site value as if vacant, and I assume reflective of the cost to raze the existing structures. On its face is seems as if this is a vacant land appraisal subject to removal of the structures, however it may well be that the opined value may exceed the $250k transaction (also obviously there is no current transaction) amount. I am quite familiar with the area and this seems like an interesting assignment and I will request a higher fee. Thoughts appreciated :)
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
This is probably a state-specific question that's subject to the laws and regs in your state. For sure you would want to check with them on that.

But in general, the Appraiser Qualifications Board notes the scope of practice for each license level. For the CRs it includes 1-4s and vacant land upon which a 1-4 can be built, but not including residential subvidision projects. How the different states handle transaction amounts varies, but one thing that won't vary is the applicability of the COMPETENCY RULE, or the measure of that competency being based on what an appraiser who normally appraises such properties would do.

As this assignment is apparently headed outside the GSE pipelines I think it would represent an extremely high risk assignment for an SFR appraiser unless they're capable of doing what a CG would normally do in that assignment, because that's the benchmark this workproduct is subject to.

But that's just an opinion. Others may disagree.
 

CGgonnabee

Member
Joined
Apr 10, 2008
Professional Status
Certified General Appraiser
State
Virginia
I'm pretty sure I got calls several weeks ago about that property from two different AMC's. Zoned business and the house is assessed for nearly nothing. They need a commercial appraisal and don't want to pay for it. Run.
 

mp2277

Junior Member
Joined
Mar 21, 2008
Professional Status
Certified Residential Appraiser
State
Virginia
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