Where in USPAP can you find construction appraisals requiring an as is value

[Albert2]

I am appraising an old home that is under construction. It is for a HELOC. The lender has said I do not have to do an "as is" value, which I think is incorrect. Where can I quote USPAP?

 

[BRCJR]

I am appraising an old home that is under construction. It is for a HELOC. The lender has said I do not have to do an "as is" value, which I think is incorrect. Where can I quote USPAP?

It is not in USPAP but rather the Interagency Appraisal and Evaluation Guidelines.


From IAEG:
The estimate of market value should consider the real property’s actual physical condition, use, and zoning as of the effective date of the appraiser’s opinion of value. For a transaction financing construction or renovation of a building, an institution would generally request an appraiser to provide the property’s current market value in its “as is” condition, and, as applicable, its prospective market value upon completion and/or prospective market value upon stabilization.


Now with all that being said if they order it asking to follow FNMA/Freddie guidelines they are exempt from following the IAEG.
This could be a Scope of Work issue.

 

[James Micozzi]

I am appraising an old home that is under construction. It is for a HELOC. The lender has said I do not have to do an "as is" value, which I think is incorrect. Where can I quote USPAP?

There is nothing in USPAP for your to quote. You need to determine what your scope of work will be and what value the lender wants. that's appraisal 101.

 

[residentialguy]

It is an USPAP issue when it is misleading.

 

[TerryRohrer]

I am appraising an old home that is under construction. It is for a HELOC. The lender has said I do not have to do an "as is" value, which I think is incorrect. Where can I quote USPAP?

That is not a USPAP issue, it is an assignment condition based on the needs of your client, so it depends on what they are trying to accomplish.

Some examples of when "as-is" might be required are included in the Federal Register Interagency Appraisal and Evaluation Guidelines.

Federal Register :: Request Access

www.federalregister.gov

 

[Tim Hicks (Texas)]

It is right next the USPAP section covering the measuring and inspection of the subject property.

 

[Sadie]

Are you making an assumption regarding the condition? As in Subject to Completion? If so, you need to state what will happen to the value should your assumption not happen. Yes USPAP does address this. (edited)

 

[Dublin ohio]

Yes USPAP does address this.

Source?

 

[BRCJR]

Are you making an assumption regarding the condition? As in Subject to Completion? If so, you need to state what will happen to the value should your assumption not happen. This is easily described as the As Is value and does not need to be an exact number. Yes USPAP does address this.

I could be wrong but, I think you are answering a question that the OP did not ask.............

 

[glenn walker]

No USPAP addresses development in general not a "as Is - As Completed Value" In general the appraiser has to determine if he/she can create a credible value and report in "as is " or "as completed" This is all up to the appraisers engagement and scope of work NOT really a specific USPAP issue. You either can or you cant and only you can make that determination. FRANKLY FROM what you posted the Lender is right not a issue and it can be done. IF NOT decline the assignment and move on