Skip to content
BOL Conferences
Thread Options
#2269349 - 04/19/22 05:13 PM Appraisal reuse on different spec properties
FSLICBanker Offline
Member
Joined: Apr 2008
Posts: 99
North Carolina
I've researched the following issue most of the morning so am turning to this learned community for an opinion to prove or disprove or commetn on industry thoughts. The question is whether a bank can use a recent (let's say less than 6 month old) appraisal for Spec House A for an evaluation value on Spec House B - let's assume it's OK per the bank's appraisal/evaluation guidelines.

My first thought was absolutely not but I couldn't find any clear language on any prohibition. The same lender built the same floor plan house on adjacent, identical lots (both cost and appearance) using the same type of building materials. Theoretically, the cost and market value approach would be identical for both. Utilizing the appraisal for Spec House A for House B evaluation significantly decreases loan processing time for Spec House B in terms of waiting for the appraisal and would decrease costs also. Any thoughts?

Return to Top
Lending Compliance
#2269351 - 04/19/22 05:39 PM Re: Appraisal reuse on different spec properties FSLICBanker
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
If you are not required to get an appraisal due to the dollar amount of the loan, why not?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2269358 - 04/19/22 06:30 PM Re: Appraisal reuse on different spec properties FSLICBanker
FSLICBanker Offline
Member
Joined: Apr 2008
Posts: 99
North Carolina
Many thanks Mr. Carey. I agree.

Return to Top

Moderator:  Andy_Z