• 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.

Prior Sales- Construction Appraisals

Status
Not open for further replies.

SEW24

Freshman Member
Joined
May 26, 2017
Professional Status
Licensed Appraiser
State
Kansas
I am a reviewer at a bank in the commercial loan department. I only do commercial appraisal reviews in house as we send out all residential appraisals to an outside reviewer. I hold a residential license and was a practicing appraiser for 20+ years. We have several appraisers which we use on a regular basis for new construction appraisals whether it be for spec homes or custom build jobs. Almost all of the appraisers we use do not report prior sales of the subject or comps when the prior sale was for the vacant lot only whether it was a single lot sale or part of a larger sale of multiple lots. I believe that any sale of the subject property within the prior 36 months of the effective date, whether improved or not should be reported per USPAP. A side note- these loans are kept in-house and not sold on the secondary market. Welcome all comments and thoughts on this issue. How do you all address this?
 

SEW24

Freshman Member
Joined
May 26, 2017
Professional Status
Licensed Appraiser
State
Kansas
I am a reviewer at a bank in the commercial loan department. I only do commercial appraisal reviews in house as we send out all residential appraisals to an outside reviewer. I hold a residential license and was a practicing appraiser for 20+ years. We have several appraisers which we use on a regular basis for new construction appraisals whether it be for spec homes or custom build jobs. Almost all of the appraisers we use do not report prior sales of the subject or comps when the prior sale was for the vacant lot only whether it was a single lot sale or part of a larger sale of multiple lots. I believe that any sale of the subject property within the prior 36 months of the effective date, whether improved or not should be reported per USPAP. A side note- these loans are kept in-house and not sold on the secondary market. Welcome all comments and thoughts on this issue. How do you all address this?
Additional note: Our outside reviewer is of this same opinion.
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
I am a reviewer at a bank in the commercial loan department. I only do commercial appraisal reviews in house as we send out all residential appraisals to an outside reviewer. I hold a residential license and was a practicing appraiser for 20+ years. We have several appraisers which we use on a regular basis for new construction appraisals whether it be for spec homes or custom build jobs. Almost all of the appraisers we use do not report prior sales of the subject or comps when the prior sale was for the vacant lot only whether it was a single lot sale or part of a larger sale of multiple lots. I believe that any sale of the subject property within the prior 36 months of the effective date, whether improved or not should be reported per USPAP. A side note- these loans are kept in-house and not sold on the secondary market. Welcome all comments and thoughts on this issue. How do you all address this?
I agree with you. Make it part of the assignment conditions that all sales of the subject property within the prior 36 months of the effective date must be reported and analyzed...that will end the arguments about whether that is required by USPAP. Tell all of the appraisers that they can either accept that assignment condition or not appraise for your bank any longer
 

A K

Elite Member
Joined
Jul 31, 2013
Professional Status
Certified Residential Appraiser
State
Maryland
I report the prior sale of the vacant lot/site or tear down. I do not report the prior sale of the larger parcel if the subject property was created by subdivision.
 

CindyR

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
I always report them. Just did one last week for a $200,000 house but the prior sale was $3,900,000. I just report how many vacant lots were included in that prior sale. (ANd yes, i report them because USPAP says you have to report them and analyze,)
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
I report the prior sale of the vacant lot/site or tear down. I do not report the prior sale of the larger parcel if the subject property was created by subdivision.
That is an acceptable way to do it. Excluding the prior sale of of the larger parcel before it was subdivided is acceptable because at that point, the subject property did not even exist as a legal entity, so that prior sale of the larger, UN-subdivided property was not a sale of the subject property. Of course, theif the subject lot was subdivided at the time of the prior sale and was sold as a part of a bulk sale of lots, then reporting that prior sale would be required.
 
Last edited:
  • Like
Reactions: A K

Flakey

Senior Member
Gold Supporting Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
South Carolina
I report ANY prior property transaction (quit claim, site acquisition, foreclosure, probate). If you have to check anyway, it's no trouble to put your findings in the report.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Almost all of the appraisers we use do not report prior sales of the subject
USPAP is clear ... ALL transactions need reported and analyzed, and you should request all your appraisers do. So why not send all of them a nice FYI email with the appropriate Q & A quoted, and you will probably not have to continually address this issue

.
 
D

Deleted member 134708

Guest
I report any transfer and or sale.

On new construction not uncommon for me to report 11/15/16 $0, 11/15/16 $10,500,000.

I state facts. $0 was a nominal transfer. $10.5mm was a whole subdivision. Subjects land was within this purchase.
 
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