Max house value for accepting a residential appraisal

[cushie0105]

I remember when i first got into the business, I was taught that anything over a certain value, maybe $2 million (I forget the amount), should be handled by a general appraiser. Is this still the case? Would you accept an assignment for a home that is worth $10 million+

 

[Mike Ault]

I remember when i first got into the business, I was taught that anything over a certain value, maybe $2 million (I forget the amount), should be handled by a general appraiser. Is this still the case? Would you accept an assignment for a home that is worth $10 million+

"Highest and Best Use" determines who should appraise what. I have no problem appraising multimillion dollar properties. And remember, if your state has limitations which prevent you from appraising anything over a certain transaction amount, those would be related to the "loan amount", not the purchase price or appraised value.

 

[Fernando]

If you're an appraiser without much net worth, go for it.
Those with assets would have second thoughts taking 10+ million homes.
And no, never heard of rule that over $2 million has to be Certified General.

 

[Overimprovement]

I'll just add I have no problems IF you have competency extracting and deriving adjustments for higher end items you might find. Largest home I ever did was 20x median for my area.

 

[James Micozzi]

I remember when i first got into the business, I was taught that anything over a certain value, maybe $2 million (I forget the amount), should be handled by a general appraiser. Is this still the case? Would you accept an assignment for a home that is worth $10 million+

Absolutely not. Value has nothing to do with it. If you are a Certified Residential, you can appraiser any 1-4 family residence, condominium or cooperative unit, regardless of the value. If you do not feel competent to do so, then you should decline. I have done appraisal on SFR and Condominiums worth from 30-50 Million. One of my old mentors told me, do not get scared by the number of zeros before the decimal point. Think of 40-50 million as 40-50 dollars instead.

 

[glenn walker]

I remember when i first got into the business, I was taught that anything over a certain value, maybe $2 million (I forget the amount), should be handled by a general appraiser. Is this still the case? Would you accept an assignment for a home that is worth $10 million+

No but most only carry $1 million E & O And people who buy and sell $10 million dollar homes have lots of money for good attorneys so should the appraiser doing multi million dollar homes.

 

[Fernando]

I could do it but not worth the risk. Who buys $10+million E&O?

 

[Mike Ault]

I could do it but not worth the risk. Who buys $10+million E&O?

Who would actually suffer a $10 million appraisal related loss on a $10 million home? Nobody.

 

[J Grant]

There was never a rule with regard to cert gen -there was a rule wrt licensed appraisers who were not certified were limited to under a million.

Do it if you feel competent about that area and type of property. I do a number of high-value properties. Something to be aware of is that, typically, on a high-value/jumbo loan, the lender orders two separate appraisals fom 2 different appraisers. They compare the two, and if there is any notable discrepancy or a wide separation of value, then be prepared for a few miserable days if a client harrangues you about why you did X and the other appraiser did Z.

 

[Fernando]

Who would actually suffer a $10 million appraisal related loss on a $10 million home? Nobody.

Those with over $10 million in assets.