Plans and Spec appraisal

[Mary Maher]

Hi,

I got an odd question from a lender today. He has a client who had gotten a new construction appraisal from a different lender and the other appraiser did a plans and specs appraisal w/o including any kind of land value and stated that "site value is not required by FAnnie May" on this sort of assignment.

Has anyone heard of something like this??

[Nigel Mountbatten]

It does sound odd. Was there no cost approach developed at all?

[Joe The Appraiser]

They spelled Fannie Mae wrong?
Why do cost approach w/o site value?
Site value on new construction has to be one of the easier ones to derive.
Never heard of such a thing, was the Cost Approach to Value attempted at all?

[Randy Bennett]

The appraiser probably cloned the report and that was one of the canned comments from the cloned report. However, on all new construction appraisals I do, the lenders require the cost approach including the land value.

[Doug Eisenhard]

That's just what the 1004 form says in bold in the cost approach section. Any ethical appraiser would fill this out.

[Chris Jourdan]

Fannie and Freddie not require the Cost Approach. However if this was a construction loan it probably was not going to Fannie or Freddie. Local Banks in my market require the cost Approach to be completed and the AI recommends that a cost approach be completed. Poor work on the part of the original appraiser.

[Joe The Appraiser]

Did they really spell it Fannie May??
LOL