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No Appraising Ag Properties In Illinois By Cr Appraisers

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Michigan CG

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What other states besides Iowa and Illinois say that CR cannot do AG reports?
 

J Grant

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Dec 9, 2003
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Florida
Sounds appropriate, or even lenient...(some might disagree)
 

RSW

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Tennessee
TN does not allow it. Highest and best use analysis should be done first. I called the TN appraisal commission on one several years ago where there was a 30+ acre parcel with a high end home that was zoned agricultural and had some commercial activity. They said a CR could not do it, but recommended I contact a CG and work under him/her on it just to get the experience.
 

Gobears81

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Illinois
One would think quite a few. I understand that sometimes there is some confusion before accepting an assignment on whether the highest and best use is ag or a residential home-site, but the key word here is residential. Strange to picture a residential appraiser doing a large-scale, 800-acre ag operation legally.
 

hastalavista

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California
View attachment 31038

What other states besides Iowa and Illinois say that CR cannot do AG reports?


It depends if the state's licensing regulations cover FRTs/Mortgage Finance appraisals or all appraisals.

In California, a CR is limited to 1-4 residential properties (including land) if those assignments are for FRTs or mortgage finance appraisals.
However, for non-mortgage related assignments (bankruptcy, IRS work, litigation, etc.) licensed appraisers must follow the USPAP competency rule. So a licensed or certified residential appraiser, if competent, can do ag. work or any other commercial work in that case.

California is a non-mandatory state. Anyone can perform an appraisal. Licensed appraisers who are engaged as such must follow the state regulations and USPAP. State regulations as far as property type or complexity only apply to FRTs or mortgage-related work.
 

Terrel L. Shields

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Arkansas
At what license level? I have no problem with a CR doing agri up to the lic limits which here is $250,000 (caveat is that it should not be complex)

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Gobears81

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Certified General Appraiser
State
Illinois
At what license level? I have no problem with a CR doing agri up to the lic limits which here is $250,000 (caveat is that it should not be complex)

View attachment 31039
So for FRT, is it the transaction value or loan value? What if the transaction is below market or the loan value is significantly less than the actual property value? For non-FRT, how do you know that the value will be less than $250,000 until you get into it? Sometimes, it might be obvious, but if it ends up being $275,000, do you just pull up and say that you can't do this appraisal and lose all of your time spent on it?
 

Michigan CG

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Let us say it is easy, 60 acres of tillable. Iowa has said a CR can't do that, nothing over 40 acres. Illinois has some expensive farm land, let us say an average of $7,000/acre. That 60 acres is worth $420,000; 40 acres is $280,000.
 

Terrel L. Shields

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Arkansas
Sometimes, it might be obvious, but if it ends up being $275,000, do you just pull up and say that you can't do this appraisal and lose all of your time spent on it?
Not my problem as I am CG, but it does invite the SL or CR to minimize the close ones. My associates had no issue because they simply fell back on my signature although I normally did the big ones. So it depends but in the old days usually was talking $100k or less. And excellent way to get paid while accumulating experience hours. Xp hours don't require co-signature which is fine with me. I had 1000 hr. of commercial when I sat for the CR test. Most was bare land, small farmsteads, or small town retail buildings often selling or valued at less than $50,000. Here it was after Y2K before land sold for more than $2,000 acre. 90% "agri" here is pasture.
 
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