Read your state Law

[Terrel L. Shields]

USPAP is not the only legally controlling authority (wonder where that term came from) which regulates you. Your state board has laws, too. Laws that seem silly in part, but most are actually enacting things the Feds wanted.

I got a call from a Cert. Res. (hey, I'm not the legal expert around here!) asking me if I wanted to appraise a house in a ritzy subdivision known locally as Pinnacle Hills. I asked why she did not want to do it and she said it was worth more than 1,000,000, so it was ABOVE her limits!!

I said, NO, it is not above your limits. You can do a house (1-4 fam) without regard to complexity or value. What you can't do is commercial, land, farmland, etc. over $250,000....

In Arkansas that $250,000 is the transaction value (mortgage amt. or sales amount) in a federally related transaction.
In a non-federally related tranaction, the amount is $250,000 appraised value.

Geez, I wonder how many appraisals were in her files that was something else??

 

[Mike Garrett RAA]

$1,000,000 is above my limit...not legally but practically. If I miss a value by 10% on a $200,000 dollar house, my liability is $20,000...on a million dollar house it becomes $100,000 which is above MY limit! Like to refer those to a couple of new hot shot guys who can do anything, anytime, any value. Chuckle, chuckle!

PS...I know I can do any residential property without value limitation..but who wants to?

 

[Terrel L. Shields]

Well....5 of those $200,000 homes = $1,000,000, so why not charge $1,500? I don't hesitate to ask...I don't get many, but at least they are worth my time.

I quoted a $3,000 fee today. Lady said for a divorce. I said, no thankee, if you want me I will get my court fee UP FRONT. "But it is a FRIENDLY divorce" That's an oxymoron if I ever heard one. I didn't place first in the Rodeos but I got bucked off twice. The last divorce appraisal I did was so friendly, by the time it was over her house burnt (gas trail down the hall and into the bedroom) and he tried to get her arrested when 60 head of his cattle disappeared (actually taken by their son to keep either one from selling because he had used as collateral). Both had assured me they were getting along just hunkie dorie and even split the fee.

 

[Steve Owen]

Never do divorces - there are specialists for that market. I did do a friendly break-up once. They had been together thirty years, raised kids, etc., but never got married. They wanted to know the value so he could buy half of the house from her. Very interesting. The only problem was that it was a real odd-ball house and in the flood plain. Yeah, there's always a catch.

 

[Tim The Enchanter]

I know I can do any residential property without value limitation..but who wants to?

I think I'll stick to about $3M tops. Above that + or - is where it starts to make no sense. If I tried to avoid going over $1M in a lot of areas here.... I dunno, just can't do it, there's too many. That's the predom value. Course, a lousy $1M don't buy what it used to.

 

[Steve Owen]

A lot depends on the market. Around here anything over $500k is a bit tricky and beyond the abilities of some appraisers.

 

[wyecoyote]

Definately depends on your market. Here there are some neighborhoods just to buy a fixer will cost $500. Decent house with view $1M+. Then there are some areas top end is $160's.

Ryan