• 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.

Log Homes

Status
Not open for further replies.

Gail Richards

Freshman Member
Joined
Apr 2, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Could someone please help me. I am doing an appraisal on a log home in Texas. There is not an abundance of these around, however, they do exist. My question is according to Fannie Mae, aren't I supposed to use sales of LOG HOMES as comparables? This is an understanding that I have had for sometime. Is it possible that I am wrong or that the guidelines have changed? Any help would be appreciated.


Gail
 

Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
Gail:

If you will go to the top of the forum page you will find the "Appraiser Links" tab. Click on it and find the Fannie May - Freddie Mac links. You can then search them for log homes, unique homes, etc. You may find some help.

Fannie and Freddie do not say specifically you have to compare log to log any more than they say you should compare gas heat to gas heat. They do say you should provide the most comparable properties available. I do quite a few apprasials of log houses and sometimes don't have log comps. I just use the best comps I've got and then explain, explain, explain...

After all, most of the log houses built these days are better quality than the one Abe Lincoln had. The quality, features and amenities of today's log houses are equal to or better than many stick builts. In my market people like to pay a premium to be able to say they live in a log house. Log houses do usually cost more to build and many people are willing to pay the price.

Just use the best comps you have and explain.................... After all, you can't give them what you don't have, even if the processor and UW demand that you do so.

Good luck,
 

Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
They do say you should provide the most comparable properties available.

Good advice, Dave. This should apply to any appraisal, whether it is a log home, a cookie cutter, or a defunct factory slated for demolition. Our job as appraisers is to take the best market data we can find, analyze it, and render an opinion of value. IMHO it is the lending industry's job, not the appraisers, to decide whether or not FannieMae will take the loan.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
What county are you appraising the log home sale? Our MLS system has a way to search for log home sales. You limit to "style" or "construction". You should find sales in just about every county except Tarrant and Dallas. I haven't appraised one this year, but I appraised some last year. email me a [email protected] if you need more input.
 

Jack Schoppa

Freshman Member
Joined
Mar 29, 2002
Professional Status
Certified General Appraiser
State
Texas
I am here in north Texas where log homes are becoming "stylish" as Dave mentioned. Lots of BIG new ones being built. Several new ones over the past few years, but all were apparently custom homes and few, like one every two years or so, will sell.

I get calls from mortgage brokers (and others, but I call most of them mortgage brokers) wanting appraisals for re-fi's with the low rates and all. The first thing I do is go into the speech about: a) several in the area; b) several new ones recently constructed; c) all custom builds; d) no sales of logs, therefore, no comps; e) the newer log homes are generally equal to or superior to most other types of new construction in the area with regard to materials, quality, workmanship, functional utility, appearance, etc.; f) in my feeble opinion, "comps" CAN be of brick homes so long as overall factors for comparison are similar, and, finally; g) I will only accept the assignment at a slightly increased fee (to cover all of the time and phone calls and etc. that I know will be involved) to be paid in full upon my visit to the property. The first thing they have to do is call the underwriter. If all that is approved, then I don't have much to worry about. Everyone knows up front what is about to happen and I get paid in advance.

As a humorous note, the last one that I had, about three weeks ago, kept harping on wanting AT LEAST ONE log home comp.. This was on a log home on about 30 acres in a rural area. I told her that I had two log home sales, both on waterfront lots on two different lakes with the nearest to the subject being about 25 miles and that I would be happy to include one or both of them as comps if she thought that market conditions for water front lots on recreational lakes would be comparable to 30 acres of rural land. Fortunately, I have not heard from them again.

Jack
 
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