Newly licensed appraiser - $1M limit question

[skelly9131]

I recently received my residential license in California. I know I have the following limitations:

"The Licensed Residential Appraiser may appraise non-complex 1-4 residential units having a transaction value less than $1,000,000 and complex 1-4 residential units having a transaction value less than $400,000."

However, can I independently appraise/sign a general purpose appraisal report that is for date of death tax purposes if the value exceeds $1M? It is unclear to me if this is considered a "transaction value". Any insight would be appreciated. Thank you.

 

[shrubberyvaluation]

I recently received my residential license in California. I know I have the following limitations:

"The Licensed Residential Appraiser may appraise non-complex 1-4 residential units having a transaction value less than $1,000,000 and complex 1-4 residential units having a transaction value less than $400,000."

However, can I independently appraise/sign a general purpose appraisal report that is for date of death tax purposes if the value exceeds $1M? It is unclear to me if this is considered a "transaction value". Any insight would be appreciated. Thank you.

That does seem misleading. I went straight to certified so I never had to deal with it. If a lender is loaning $950,000 is that the proposed transaction value regardless of the appraised value going over 1M? Like you say, what transaction is taking place and how is it valued.

 

[MrLA]

I recently received my residential license in California. I know I have the following limitations:

"The Licensed Residential Appraiser may appraise non-complex 1-4 residential units having a transaction value less than $1,000,000 and complex 1-4 residential units having a transaction value less than $400,000."

However, can I independently appraise/sign a general purpose appraisal report that is for date of death tax purposes if the value exceeds $1M? It is unclear to me if this is considered a "transaction value". Any insight would be appreciated. Thank you.

Send me a dm. I can look at it. If it's legit my fee is $200 and I will sign as the supervisor.

 

[Zephyr999]

Send me a dm. I can look at it. If it's legit my fee is $200 and I will sign as the supervisor.

How is that supposed to work? CR and you're the supervisor?? of what??

 

[skelly9131]

Send me a dm. I can look at it. If it's legit my fee is $200 and I will sign as the supervisor.

Thanks for the offer, but I already have a supervisor that I continue to work with. The question is more about whether or not I can sign this type of report on my own yet.

 

[MrLA]

How is that supposed to work? CR and you're the supervisor?? of what??

Send me the file. I will review it. Make sure it is solid. If it is, you pay me as the supervisor. If not, fix it. Then, you pay me and I sign on the right side. Disclose that I did not inspect. Cut and paste MLS listings for each comp, farm list. I have title sources to check it out. If I suspect any low or high appraisal, I'm out.

 

[J Grant]

idk, but when this (dopey ) regulation was made in the Dinosaur era, 1 mil was a lot of $. Now it buys a starter home.

 

[skelly9131]

That does seem misleading. I went straight to certified so I never had to deal with it. If a lender is loaning $950,000 is that the proposed transaction value regardless of the appraised value going over 1M? Like you say, what transaction is taking place and how is it valued.

I asked just this question to my state's board and they didn't really have a concrete answer. They said that people interpret this differently. Some have decided that a refi amount under $1M is allowable for licensed appraisers, regardless of the value opinion. I found it fascinating that the state board didn't have some kind of guidance on what is and isn't acceptable regarding this topic.

 

[CGinMN]

Can a licensed appraiser use comps in excess of $1,000,000 if the final value estimate is under $1,000,000?

Can a licensed appraiser use comps with a sale price in excess of $1,000,000 if the final value estimate is under $1,000,000? Someone told me that you can't but I think you can.

appraisersforum.com

This was recently discussed. Transaction value = federally related transactions. Given the intended use I think you are ok, but I am not from CA. Based on my reading of IRS qualified appraiser requirements, you are good there too.

 

[shrubberyvaluation]

I asked just this question to my state's board and they didn't really have a concrete answer. They said that people interpret this differently. Some have decided that a refi amount under $1M is allowable for licensed appraisers, regardless of the value opinion. I found it fascinating that the state board didn't have some kind of guidance on what is and isn't acceptable regarding this topic.

Yep isn't it great that the state board can't even answer you, but they will discipline you if they feel like it.