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Jurisdictional Rule Exception? Direct From VA

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boardman

Freshman Member
Joined
Feb 19, 2016
Professional Status
Certified Residential Appraiser
State
Michigan
"You may complete the report as HBU commercial/ zoned commercial so long as it is legal nonconforming/grandfathered. The market value should be the value as a residence. Yes, the value may be lower than its commercial value but the house is being used, marketed and sold as residence. So it should be valued as a residence.


The VA will guarantee the loan on such properties.


Respectfully," (THIS CAME FROM VA RLC AND NAME IS OMITTED HERE)....

Yes I'm very aware that the personnel is dividing use value vs market value here....
Yes it is a purchase with loan officers involved....
Yes it is the 2nd lender they have taken this to and gone to VA program, I just happened to be assigned them both, separate case ID's
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I would never sign that as a CR.
 

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
Application of the JE Rule (one does not "invoke" the JE Rule; it either applies or it doesn't) requires one to cite the law or regulation creating the JE. In this case, what law/regulation would one cite that would require an appraiser to report the use value as the market value?
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
"You may complete the report as HBU commercial/ zoned commercial so long as it is legal nonconforming/grandfathered. The market value should be the value as a residence. Yes, the value may be lower than its commercial value but the house is being used, marketed and sold as residence. So it should be valued as a residence.


The VA will guarantee the loan on such properties.


Respectfully," (THIS CAME FROM VA RLC AND NAME IS OMITTED HERE)....

Yes I'm very aware that the personnel is dividing use value vs market value here....
Yes it is a purchase with loan officers involved....
Yes it is the 2nd lender they have taken this to and gone to VA program, I just happened to be assigned them both, separate case ID's

VA has a Jurisdictional Exception to USPAP.

Chapter 2 VA Appraisal Requirements

"Quote" USPAP:

Every VA appraisal must meet the Uniform Standards of Professional Appraisal Practice(USPAP) requirements..........................

Note: The USPAP jurisdictional exception permits Federal agencies to follow their own requirements when there is a conflict between USPAP and Federal agency requirements".
 

Ken B

Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
If the property has higher value in use in a commercial capacity, one has to wonder why the seller is accepting less for its use in a residential capacity?

Who has decided the subject's value is higher for a commercial use and what support do they have for that conclusion?
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
If the property has higher value in use in a commercial capacity, one has to wonder why the seller is accepting less for its use in a residential capacity?

Who has decided the subject's value is higher for a commercial use and what support do they have for that conclusion?

I would tend to agree with you if it were not for what I see and have seen locally. We have a historic district where by special zoning, a residential property was allowed to be built attached to a 200 year old brick shop. We also have zoning near the ocean front where residential and commercial, as well as a combination of both can be built on a site. Also, there are areas in a process of change where some odd ball things happen.
 

Ken B

Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
And the point is? I'm not following.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
H&BU may not be as much of a slam dunk as the OP thinks it is.
 
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