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It was appraised for property tax purposes. It may or may not be close to market value.
Of coarse it was appraised for property tax purposes. As you point out may not be close to market value. Appraiser certainly puts no stock in what assessor has. They could care less.
True, but the pool should still be mentioned in the report.
Poster doesn't say the pool wasn't mentioned. Poster feels he is not being given proper value for pool.
Why is that?
Fannie & Freddie don't want anything out of the norm. Is the property a legitamate duplex...doesn't sound like it. Are any of the comparables going to have a minature apartment? Doubt it. This could definitely kill a Fannie Freddie deal.
By either finding houses in competing neighborhoods that DO have apartments and/or by using other accepted appraisal practices to find the contributing value.
USPAP may say that there are other accepted appraisal practices to find the contributing value, but that doesn't mean an underwriter is going to agree.
Why is that relevant?
Because I asked it.
Why is that?
How many people buying single family homes want a miniture apartment attached that they rent out to someone for a few $? Not too many in my neck of the woods. Hence minimal value.
Fannie & Freddie don't want anything out of the norm. Is the property a legitamate duplex...doesn't sound like it. Are any of the comparables going to have a minature apartment? Doubt it. This could definitely kill a Fannie Freddie deal.
Nonsense. Fannie and Freddie will accept most everything provided it is properly explained in the report.
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USPAP may say that there are other accepted appraisal practices to find the contributing value, but that doesn't mean an underwriter is going to agree.
Has noting to do with USPAP. And as an appraiser I am not concerned with what an Underwriter agrees with or not. If the property does not fit within a certain lender's guidelines the loan officer needs to find a lender whose guidelines will accept it.
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How many people buying single family homes want a miniture apartment attached that they rent out to someone for a few $? Not too many in my neck of the woods. Hence minimal value.
If an appraiser makes the decision to place minimum value on a property because of the reasons you gave, that appraiser ought to send his/her license back to the state.
Nonsense. Fannie and Freddie will accept most everything provided it is properly explained in the report.
Has noting to do with USPAP. And as an appraiser I am not concerned with what an Underwriter agrees with or not. If the property does not fit within a certain lender's guidelines the loan officer needs to find a lender whose guidelines will accept it.
If an appraiser makes the decision to place minimum value on a property because of the reasons you gave, that appraiser ought to send his/her license back to the state.
#1) Wow, almost anything?? If only it could be so easy. You must appraise in an active cookie cutter market where your lenders don't run into any appraisal issues. Any lenders want to chime in on this one?
Do you think something like a 'mother in law wing' can pose any problems as far as approval? Or how about a log home? Or how about a tiny piece of crap house that has a huge deluxe finished pole barn and seperate high tech deluxe finished workshop? Probably ok as long as you have good comps with similar amenaties. If you don't it doesn't matter how well the appraiser explains it...it will be denied.
How about a million $ property in an area where the highest sale is $300k? You act like a deal has never been scrapped because of the property/appraisal.
#2) That's great, but a borrower is certainly concerned with it. For the most part all lenders are operating under the same guidelines. If it is blatantly denied at one lender because of the property, odds are it will be denied across the board at all lenders (again Fannie Freddie. private sources can make their own decisions.)
#3) was meant to read minimal or no value would be given to the fact that one could rent out this space. Put another way, it's value would just be as GLA not a increase in value for income producing.
Last edited by TimtheGuy; 03-03-2010 at 03:20 PM..
Tim, I am a rural appraiser in Oklahoma and I rarely, if ever, get stipped on my reports. Of which, incidentally, 99% go to Fannie and have included log homes, berm houses, octo-shaped, converted barns, etc etc etc. Never have had a problem.
You must appraise in an active cookie cutter market..........
Around here making that kind of unsupported assumption can cost you your appraisers license.
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Originally Posted by TimtheGuy
Do you think something like a 'mother in law wing' can pose any problems as far as approval?
Per lender guidelines or per Fannie/Freddie/FHA guidelines? Fannie etc don't care
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Originally Posted by TimtheGuy
Or how about a log home?
Done a lot of them....whats the problem?
I did an appraisal on a tract with three barns, a two bedroom two bath log house, a one bedroom one bath log house, a pond on seven acres in Kay County Oklahoma a while back. Not one call from underwriting.
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Originally Posted by TimtheGuy
Or how about a tiny piece of crap house that has a huge deluxe finished pole barn and seperate high tech deluxe finished workshop?
Again, whats the problem? you report what it is, you support it reasonably, you explain it thoroughly, and go on to the next one.
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Originally Posted by TimtheGuy
Probably ok as long as you have good comps with similar amenaties.
Or you have a good appraiser who can determine market reaction to those amenities and explain it properly.
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Originally Posted by TimtheGuy
If you don't it doesn't matter how well the appraiser explains it...it will be denied.
Not if the appraiser is good enough.............
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Originally Posted by TimtheGuy
How about a million $ property in an area where the highest sale is $300k?
Would a $1.5 million in a neighborhood of $150,000-$200,000 work? did one like that a few months ago. Sailed through without stips.
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Originally Posted by TimtheGuy
You act like a deal has never been scrapped because of the property/appraisal.
If the appraiser did his/her job, no. It might have been denied but it was not because of the appraisal. And if it was denied due to the type of house it was a lender stip, not fannie or freddie.
Around here making that kind of unsupported assumption can cost you your appraisers license.
Per lender guidelines or per Fannie/Freddie/FHA guidelines? Fannie etc don't care
Done a lot of them....whats the problem?
I did an appraisal on a tract with three barns, a two bedroom two bath log house, a one bedroom one bath log house, a pond on seven acres in Kay County Oklahoma a while back. Not one call from underwriting.
Again, whats the problem? you report what it is, you support it reasonably, you explain it thoroughly, and go on to the next one.
Or you have a good appraiser who can determine market reaction to those amenities and explain it properly.
Not if the appraiser is good enough.............
Would a $1.5 million in a neighborhood of $150,000-$200,000 work? did one like that a few months ago. Sailed through without stips.
If the appraiser did his/her job, no. It might have been denied but it was not because of the appraisal. And if it was denied due to the type of house it was a lender stip, not fannie or freddie.
Wow, you Okie appraisers must be incredible.
How about this scenario: Year round lake home on a Northern MN lake. Only access to the property is by 10-20 minute boat ride. Property surrounded by state forest land. There are no roads to the property. Is it eligible for Fannie Freddie financing?
How about this scenario: Year round lake home on a Northern MN lake. Only access to the property is by 10-20 minute boat ride. Property surrounded by state forest land. There are no roads to the property. Is it eligible for Fannie Freddie financing?
Not all, but I am. Annemieke is is incredible as well.......I trained her.
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Originally Posted by TimtheGuy
What would it depend on?
Simply because a property isn't conventional isn't a reason Fannie or Freddie turns down a loan. It has a lot to do with health and safety issues. There are also housing durability issues that have to be answered to make a house eligible. But the guidelines are loose enough that one should never assume it will be denied a loan.........Fannie, Freddie, and FHA WILL consider just about any property.......provided a detailed explanation of any deviation from guidelines are included.
Not all, but I am. Annemieke is is incredible as well.......I trained her.
Simply because a property isn't conventional isn't a reason Fannie or Freddie turns down a loan. It has a lot to do with health and safety issues. There are also housing durability issues that have to be answered to make a house eligible. But the guidelines are loose enough that one should never assume it will be denied a loan.........Fannie, Freddie, and FHA WILL consider just about any property.......provided a detailed explanation of any deviation from guidelines are included.
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Simply because a property isn't conventional isn't a reason Fannie or Freddie turns down a loan.
Actually it can be.
The scenario I gave (year round lake home with boat only access) was an actual deal of mine a few months ago. I sell direct to Freddie. It was clear cut on whether or not this situation would be approvable. We had to call Freddie to find out if it was approvable.
It would be approvable only if there were comps with similar access and commentary from the appraiser that this type of situation is common for the area. If there were no comps with similar access dead deal period (no matter how good the appraiser was). Not a lender stip as we are the lender (I suppose you could look at it as we would be stipping ourselves ). This is straight from Freddie.
I also sell loans to wholesalers as a correspondent lender. They basically operate on the same premise that if there aren't comps and/or it isn't common for the area, a deal can go south based on property (i.e. log home, mother in law wing, over built for the area, too much value in outbuildings, etc.).
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If the appraiser did his/her job, no. It might have been denied but it was not because of the appraisal. And if it was denied due to the type of house it was a lender stip, not fannie or freddie.
Fannie and Freddie don't lend money, the lenders do it. So ya, of coarse it is a lender stip that can deny it on type of property. But as you can see above underwriters revert to Fannie and Freddie and their guidelines to see what they can do. Put another way, lender stips are basically just an extension of Fannie Freddie guidelines. Sure lenders can add requirements above and beyond Fannie Freddie guidelines, i.e. 620 minimum FICO, but it usually has more to do with credit qualifying than property requirements.
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). This is straight from Freddie. 
