We have a lender who wants to take eight properties as collateral on a loan. The amount of the loan is greater than $250,000. All of the properties are the same (built in the same subdivision, same floor plan, same building materials, etc.). The lender told the customer he only needs an appraisal on one of the properties and the bank can then use that valuation to determine the values of the remaining seven properties. Is this correct? Or because the loan is greater than $250,000 does he need to get eight appraisals?

Do you have 8 different addresses? Are all lots valued the same value? Is loan a commercial purpose? Unless, it is a construction or temporary loan, IMO there should be 8 appraisals.

Assuming the value of each property is below the $250,000 i would add that 8 evaluations would be sufficient, if that were an option.

1. Appraisal Threshold
For transactions with a transaction value equal to or less than $250,000, the Agencies’ appraisal regulations, at a minimum, require an evaluation consistent with safe and sound banking practices.40 If an institution enters into a transaction that is secured by several individual properties that are not part of a tract development, the estimate of value of each individual property should determine whether an appraisal or evaluation would be required for that property. For example, an institution makes a loan secured by seven commercial properties in different markets with two properties valued in excess of the appraisal threshold and five properties valued less than the appraisal threshold. An institution would need to obtain an appraisal on the two properties valued in excess of the appraisal threshold and evaluations on the five properties below the appraisal threshold, even though the aggregate loan commitment exceeds the appraisal threshold.