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?