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VA Appraisal Lender Wants Site Value Deleted

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Neil Melby

Junior Member
Joined
Mar 17, 2002
Professional Status
Licensed Appraiser
State
South Dakota
I am aware of the USPAP requirement that I must develop an opinion of value of the site value as if vacant on a residential appraisal.

Today a lender is requesting that I either delete the site value from the report or develop the cost approach. She is stating that this is a VA requirement. News to me!

VA has always maintained that they do not require a cost approach. Am I missing something here?

Thanks

Neil Melby
 

CindyR

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
ask her to show you where it says that
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
She is stating that this is a VA requirement.

If correct I would be inclined to remove the site value from the report, and keep it in my file.
But, I don't do VA. :shrug:
 

gregb

Elite Member
Joined
Sep 3, 2011
Professional Status
Certified General Appraiser
State
California
Please cite the USPAP covering this:

I am aware of the USPAP requirement that I must develop an opinion of value of the site value as if vacant on a residential appraisal.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
How did you come up with a site value without doing the cost approach ? You did not do an appraisal on a vacant site ? Because VA does not do land loans ?
 

Neil Melby

Junior Member
Joined
Mar 17, 2002
Professional Status
Licensed Appraiser
State
South Dakota
Several years ago we had a USPAP instructor in our state and we discussed developing an opinion of market value on the site as if vacant as a part of our highest and best use analysis. Rationale was that in some cases the site may be more valuable as a vacant site for a different (more valuable) purpose. He asked us how we would know this if we did not develop an opinion of site value. I have been doing this since the class, so have a number of my peers. I cannot find this in USPAP! With regard to giving an opinion of market value on a site as if vacant without doing a cost approach, the site is compared to other competing lot sales in the area , adjusted on a comparable sales grid.

Neil
 

S is for spittman

Senior Member
Joined
Oct 24, 2005
Professional Status
Certified Residential Appraiser
State
Texas
If the Cost Approach section is not required to be completed [when not applicable], why would reporting the opinion of site value be? That would be a client specific instruction. If the client is requesting that you remove it, then you should. Just keep your notes on site value in your file.
 

gregb

Elite Member
Joined
Sep 3, 2011
Professional Status
Certified General Appraiser
State
California
Several years ago we had a USPAP instructor in our state and we discussed developing an opinion of market value on the site as if vacant as a part of our highest and best use analysis. Rationale was that in some cases the site may be more valuable as a vacant site for a different (more valuable) purpose. He asked us how we would know this if we did not develop an opinion of site value. I have been doing this since the class, so have a number of my peers. I cannot find this in USPAP! With regard to giving an opinion of market value on a site as if vacant without doing a cost approach, the site is compared to other competing lot sales in the area , adjusted on a comparable sales grid.

Neil

Where in the VA appraisal report did you state your analysis and site value of the subject? On the Cost Approach page? If you stated your site value in a H&B Use analysis in the addendum then I don't see what the lender's beef is.
 

Neil Melby

Junior Member
Joined
Mar 17, 2002
Professional Status
Licensed Appraiser
State
South Dakota
Where in the VA appraisal report did you state your analysis and site value of the subject? On the Cost Approach page? If you stated your site value in a H&B Use analysis in the addendum then I don't see what the lender's beef is.
 
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