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Veterans Affairs Grant ???

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Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
I have an apprisal to do. With the apprisal order is, what I would call a letter of intent from the Department of Veterans Affairs for a grant of $9,280.00 to be added to the home for a 20 x 40 room addition.. But this grant will not be issued until the home transfers from son to father at the closing. Current home is in son’s name. Home is new construction. Son and father are the builders.

Loan officer, father and son say this adds value to home. I say it dose not. :agrue: The transfer has not taken place. There is no guarantee that some one will not run off with the cash or the goverment will pull the program. So I say it dose not add value, even though there is a letter. :?:

They are trying to bring the value of the home up. 8O Would a loan officer or owner do such a thing?
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Ray,

Forget the worry about whether or not they do the addition or not.... it is, like, NOT your problem.

Get a letter from your client telling you that they want you to perform an appraisal "subject to" a complete set of plans and specifications for subject and the proposed addition, and subject to your final inspection. Make sure everyone is very clear and your appraisal is based on the
If the addition is not constructed it is not YOUR problem. If hte elnder closes on teh loan it is also not your problem.

Doing the appraisal IS your problem, do it with the proper set of documentation, if it is not provided to you stop everything.

Just MY opinion, I'm surte you will get others!

And if they want it "as is" tell them to get another license to do it yours is too valuable to you!
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
I agree with Lee Ann.

Subject to you need the plans & specs and the appraisal is based on the proposed addition being completed per plans & specs.

As is doesn't include the addition at all.

Period. Their choice.
 

Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
Ray, Pamela and Lee Ann are right. However, your real question seems to be "does the letter add value to the home?"

In response to that, I have a question for you. Is the letter from the VA marketable. That is, could anyone in the market buy the home and get the grant? If so, then the letter might add value to the home, as it sits (but probably not the full amount). Think about your definition of market value - unless the grant is for anyone in the market who buys the home, and not just the father, then the grant does not add anything to market value.

Your safe way out is to follow the advice of the first two posters. Don't consider the value of the letter at all. Consider only the hypothetical value of the home with an additional room.
 
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