State Certified Vs Licensed

[Michael Filip]

In NJ a LICENSED appraiser can appraise residential up to $1million. You must be CERTIFIED to appraise over $1million. Yet I've seen many reports where the appraiser is not certified, yet the final estimate of value is well over 1 million. Underwriters will pick apart anything, yet I see so many report done by "under licensed" appraisers - no problem. I was wondering if anyone has come across this before. Is this something that should be reported to the state board? Also what if a licensed appraiser (or even an apprentice) inspects a 1million +, and the reviewer is certified, but did not inspect? :question:

 

[CANative]

Transaction value

Check with your state to see if the $1 million dividing line is based on transaction value and if transaction value is defined by whether that transaction is for a purchase or an extension of credit.

The linke I posted pertains to California.

 

[Mountain Man]

There is a big debate about that between GA appraisers. The law is soooo gray, no one really knows. I'm one who sides with caution, so one of our CG's will sign with a licensed if over a mil.

 

[Vegan702]

Here in NV a licensed can't do over $250k if it is a FRT or considered complex. So if its not FRT and not complex like alot of these million dollar subdivisions that are tract homes here in Vegas, there is no problem, IIRC.

 

[wyecoyote]

Many say transaction value. But here is a question if the subject is for a purchase at $1.001 M. Would the transaction value not be $1.001 M. Also many arguments on complex vs non complex. Even when I talk with the state they do not have a clear cut definition. They leave the complex v non complex up to the appraiser to decide. Personaly when I was only Licensed I would never do an appraisal on a property over $1 M. Now Certified I will do over $1 M properties.

 

[CANative]

Nevada regs

I'm not sure if your interpretation is correct, James.

Nevada seems to be similar to CA.

 

[CANative]

Ryan... if the transaction is for a purchase, the market value is the transaction amount.

If the transaction is a loan (refinance or other extension of credit) the loan amount is the transaction amount.

It is the client's responsibility to determine "complex."

 

[Vegan702]

I mispoke, as I thought our laws stated the $250k FRT value

Here is our definition of complex;

NRS 645C.055 “Complex property” defined. “Complex property” means residential property which:

1. Is atypical for the marketplace in which it is located based on, without limitation, such factors as:

(a) The architectural style of the property;

(B) Special improvements made to the property;

© The size of the lot;

(d) The use of the property;

(e) Environmental factors related to the property; and

(f) Ownership of a partial interest in the property; and

2. Requires techniques to be used other than a simple comparison of sales or an analysis of cost or income in order to produce a reliable appraisal of that property.

(Added to NRS by 1997, 299)



And our scopes;

NRS 645C.280 Types and scope of licenses and certificates.

1. An appraiser may obtain from the Division:

(a) A license as a residential appraiser, which authorizes him to perform an appraisal of real estate suitable for or consisting of no more than four residential units in any one transaction, if the total value does not exceed $1,000,000 and the complexity of the transaction does not, under the regulations of a federal agency or the standards adopted by the appraisal subcommittee of the Federal Financial Institutions Examination Council, require a certified appraiser;

(B) A certificate as a residential appraiser, which authorizes him to perform an appraisal of real estate suitable for or consisting of no more than four residential units in any one transaction, without regard to value or complexity; or

© A certificate as a general appraiser, which authorizes him to perform any appraisal.

2. A person certified or licensed as a residential appraiser may, under the direct supervision of a person certified as a general appraiser, assist in the preparation and communication of an appraisal that is outside the scope of his certificate or license.

3. The Commission may establish, by regulation, additional classifications of licensure or certification, and the qualifications therefor, if necessary to comply with classifications and qualifications established by the appraisal subcommittee of the Federal Financial Institutions Examination Council.

(Added to NRS by 1989, 826; A 1991, 889)

 

[alonso panduro]

Federally Related Transaction.
House sells for 2m. Mortgage amount is 900k. The Federally ralated transaction is 900k. I got this from the horse's mouth. OREA in California.
My guess is they want to issure the risk on the note. Not the fact that some slug decided to pay over 1m for a house.

 

[Vegan702]

Originally posted by Greg Boyd@May 6 2005, 09:16 PM
Nevada regs

I'm not sure if your interpretation is correct, James.

Nevada seems to be similar to CA.

Greg,
You beat me to it, after writing that I went back and looked again.