Reviewing a BMR appraisal

[spgray65]

You really need to decline this assignment or partner up with someone with more knowledge and experience with the requisite issues involved in this assignment.

Volunteering?

 

[Riick]

why would someone who is knowledgeable, well informed or well advised pay more (or even as much) to purchase a BMR (which typically has pretty severe resale restrictions) instead of a unrestricted property? Obviously, anyone who would pay more for a BMR in such a situation is not a well informed or well advised buyer.

1st - I am from the gubmint, and I am here to help you.
2nd - Yes there are restrictions to the buyer,
but when *I* was doing appraisals for these CRA homes, the buyer generally had
a 2nd mortgage of 10% of Sale Price, with no payments and no interest accruing for
the 1st 5 years, and if buyer paid the 1st mortgage w/o any "lates", the 2nd
mortgage would be 100% forgiven. !!!
So... what exactly was the sale price then??
.

 

[spgray65]

1st - I am from the gubmint, and I am here to help you.
2nd - Yes there are restrictions to the buyer,
but when *I* was doing appraisals for these CRA homes, the buyer generally had
a 2nd mortgage of 10% of Sale Price, with no payments and no interest accruing for
the 1st 5 years, and if buyer paid the 1st mortgage w/o any "lates", the 2nd
mortgage would be 100% forgiven. !!!
So... what exactly was the sale price then??
.

The question is, what is the market value conclusion you gave those properties?

 

[spgray65]

You really need to decline this assignment or partner up with someone with more knowledge and experience with the requisite issues involved in this assignment.

Thank you for your advice. I did just decline.

Now, on to making some money today. Cheers.

 

[timd354]

I fully well understand what market value means. BMR units are not market value units. The OA gave this unit a market value conclusion. Do you agree with me that they made an error?c.

No, I do not agree with you that the OA made an error. Having been on both the appraisal side and the lending side of this business, I would be very shocked to if the original appraisal assignment was for anything else than market value (as this is what is required by federal banking regulations and by virtually all secondary market participants).

I am sorry if my posts sound harsh, but hopefully my "harsh" comments will cause you to decline this assignment or partner with someone else more experienced.

One of the best that things I learned early in my career was that the smartest move sometimes is to turn down an assignment or partner with someone else more knowledgeable. Secondly, I also learned very early (from my mentor and others) not to take criticism personally and to have a thick skin. Most everyone can learn quite a bit from their mistakes and from well founded criticism.

 

[timd354]

Thank you for your advice. I did just decline.

Now, on to making some money today. Cheers.

Good job!

Good luck making lots of money today and throughout your career...the wisdom you have shown by declining this assignment will serve you well in the future.

 

[spgray65]

Still thinking about this now....

Do BMR's even have a "market value" because they can't be marketed openly? At least in this county when they are sold they are sold back to the housing authority who then finds a new qualified buyer. If the buyer defaults they revert back to the county.

Why are they even appraised on a 1004 then?!