The Premier Online Community for Real Estate Appraisers!
-
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.
VA New Construction
- Thread starter Digger88
- Start date
- Status
Don Clark
Elite Member
- Joined
- Jan 17, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Virginia
From the Roanoke Regional Loan Center,Appraisers guide:
A3. ELIGIBLE PROPERTIES - TYPES
Most 1-4 family properties are eligible for VA appraisal. (Note: If you receive a request to appraise a
property with more than 4 units call us for guidance). Properties fall into one of the following three
category types:
1. EXISTING CONSTRUCTION
These are 1-4 family dwellings for which the improvements have been completed for at least one year, or
completed less than one year and previously owner-occupied.
Appraisals are based upon an inspection of the dwelling, and completed either “As-Is” or “Subject To”
completion (of VA MPR repair items). Please provide both the estimated cost and contributory value of
repairs. This is also needed on liquidation cases on the liquidation addendum, even though the
liquidation report is completed “as-is.”
If extensive remodeling is to be done, then you may request additional information.
(See Section C6 – Renovations and Remodeling).
2. NEW CONSTRUCTION (Appraised from Inspection as Existing)
15
These are 1-4 family dwellings less than one year old, never owner-occupied, and complete to at least
the Customer Preference stage. Customer Preference items (such as carpet, appliances and some trim
items) are typically selected by the purchaser.
All exterior work should be complete except for items (such as incomplete exterior painting or
landscaping) delayed due to weather or other circumstances beyond the control of the builder.
Lenders are responsible to determine if a new construction property is ready for appraisal. When you
inspect the property and determine otherwise, notify the lender and VA so that the case can be
cancelled. You may bill the lender for an inspection fee.
Otherwise, complete your inspection of the subject and prepare the appraisal “as is” (if complete) or
“subject to” completion of the remaining items. List any remaining completion items, along with the cost
to do each item.
An appraisal report completed “per plans and specifications” is unacceptable in these cases.
3. PROPOSED CONSTRUCTION (Appraised from Plan Set or Inspection of Model)
These are 1-4 family dwellings where construction has not started, or are under construction but not yet
complete to the Customer Preference stage (as for New Construction, above). The appraisal is
completed “per plans and specifications”, or from inspection of a model of the same plan type where no
plan set is provided.
Upon inspection, you may determine that the appraisal could be completed as New construction instead
(i.e. without the use of the plans and specifications or inspection of the model). Complete the appraisal
as requested UNLESS the lender gives you permission to change. Note in your report if this happens.
(See Section C3)
A3. ELIGIBLE PROPERTIES - TYPES
Most 1-4 family properties are eligible for VA appraisal. (Note: If you receive a request to appraise a
property with more than 4 units call us for guidance). Properties fall into one of the following three
category types:
1. EXISTING CONSTRUCTION
These are 1-4 family dwellings for which the improvements have been completed for at least one year, or
completed less than one year and previously owner-occupied.
Appraisals are based upon an inspection of the dwelling, and completed either “As-Is” or “Subject To”
completion (of VA MPR repair items). Please provide both the estimated cost and contributory value of
repairs. This is also needed on liquidation cases on the liquidation addendum, even though the
liquidation report is completed “as-is.”
If extensive remodeling is to be done, then you may request additional information.
(See Section C6 – Renovations and Remodeling).
2. NEW CONSTRUCTION (Appraised from Inspection as Existing)
15
These are 1-4 family dwellings less than one year old, never owner-occupied, and complete to at least
the Customer Preference stage. Customer Preference items (such as carpet, appliances and some trim
items) are typically selected by the purchaser.
All exterior work should be complete except for items (such as incomplete exterior painting or
landscaping) delayed due to weather or other circumstances beyond the control of the builder.
Lenders are responsible to determine if a new construction property is ready for appraisal. When you
inspect the property and determine otherwise, notify the lender and VA so that the case can be
cancelled. You may bill the lender for an inspection fee.
Otherwise, complete your inspection of the subject and prepare the appraisal “as is” (if complete) or
“subject to” completion of the remaining items. List any remaining completion items, along with the cost
to do each item.
An appraisal report completed “per plans and specifications” is unacceptable in these cases.
3. PROPOSED CONSTRUCTION (Appraised from Plan Set or Inspection of Model)
These are 1-4 family dwellings where construction has not started, or are under construction but not yet
complete to the Customer Preference stage (as for New Construction, above). The appraisal is
completed “per plans and specifications”, or from inspection of a model of the same plan type where no
plan set is provided.
Upon inspection, you may determine that the appraisal could be completed as New construction instead
(i.e. without the use of the plans and specifications or inspection of the model). Complete the appraisal
as requested UNLESS the lender gives you permission to change. Note in your report if this happens.
(See Section C3)
Mike Garrett RAA
Elite Member
- Joined
- Jan 14, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Colorado
Seems this is always confusing. I also mark "under construction" when it's under construction. Proposed is when there is nothing there and it's it done from plans and specs.
I get in trouble because I believe if it's under construction we should say so and then call for completion per the plans and specs and not subject to repairs, etc. Of course that's way too logical for some.
I get in trouble because I believe if it's under construction we should say so and then call for completion per the plans and specs and not subject to repairs, etc. Of course that's way too logical for some.
RSW
Elite Member
- Joined
- Feb 18, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Tennessee
I agree. I always ask the agent what stage of completion the improvements are in before I go out to look at the property. I call the Lender and let them know so they can make a decision if they want me to wait or continue with the appraisal in its current state of completion. Most of my Lenders want the dwelling to be more than 90% complete. It's their decision and not mine.
- Status