Comments on: Cost Approach Required for USDA Condo Appraisals https://appraisersblogs.com/appraisal/cost-approach-required-for-usda-condo-appraisals/ Appraisal News and Tips for Real Estate Appraisers Mon, 19 Feb 2018 07:50:54 +0000 hourly 1 https://wordpress.org/?v=7.1.3 By: Baggins https://appraisersblogs.com/appraisal/cost-approach-required-for-usda-condo-appraisals/#comment-11530 Wed, 18 Feb 2015 20:12:49 +0000 https://appraisersblogs.com/?p=6998#comment-11530 Day after day, more bad news for appraisers. If these companies ever hired an appraiser to complete all these related tasks which require appraisal specialty, that would be shocking. These industry persons hire every one but appraisers. And the typical lender position on condo vs 1004 form rests in their ability to close the deal, not on the accuracy of the reporting. Appraisers never know what to expect or how to define the scope of work, because the lender will alter that on a dime, to facilitate immediate closing without having to find a properly qualified buyer. / Per this specific issue, how can the appraiser reconcile the pre printed statements with these new requirements? They probably can’t. Set up to fail again, that’s the life of an appraiser.

]]> By: Mike Ford https://appraisersblogs.com/appraisal/cost-approach-required-for-usda-condo-appraisals/#comment-11529 Sat, 14 Feb 2015 02:40:01 +0000 https://appraisersblogs.com/?p=6998#comment-11529 No problem.
1. ALL such reports will now be on the URAR (1004) form report.
2. PRICE will range from $1,500 to $2,500 and require an advance inventory or breakdown of all common area; such as how many square feet of private roadway, sidewalks, sprinklered green belts, Number of trees and their type and sizes (5 gallon or 50 gallon size); SF of all common area living units including hallways; pools, spas, tennis courts, etc. PLUS the subject unit. Then obviously on townhouses we will be dealing with exterior rather than traditional interior (from the paint layer inward) dimensions, so a significant SF discrepancy is going to result from public records versus taped measurements.
3. There will have to be a hypothetical condition and assumption of pro rata share of cost equaling the same percentage as the ownership portion.
4. Since reliable data sources for the data required are not readily available it will obviously require anywhere from 2 to 4 weeks turn time.

I am assuming that I a 400 unit development that they want 1/400th of the total underlying land value as the site value, right?

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