AI asks HUD to use appraisals in disposition of single-family homes.
In a Dec. 1 letter to the U.S. Department of Housing and Urban Development regarding its proposed rule on the disposition of its single-family properties, the Appraisal institute encouraged the use of appraisals while cautioning against expanding valuation methods to include unregulated broker price opinions and automated valuation models.
"We believe any property disposition program utilized by HUD should require at least one independent appraisal," AI stated in its letter. Doing so helps protect not only "taxpayers from distressed sales below market value, but [also] local communities from having properties 'dumped' on the market at below market prices."
The Appraisal Institute also encouraged HUD to obtain two value opinions from appraisers, one for market value and one for the property's liquidation value. AI noted that doing so would "help the agency understand the range of risk exposure to the agency, with the liquidation value helping to illustrate the worst case scenario."
* Read the letter to HUD at http://bit.ly/1PxAk54 (login required).
* See Al's Liquidation Value Addendum at http://bit.ly/1O0g89T.
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|Title Annotation:||Up Front: APPRAISAL INSTITUTE AND INDUSTRY NEWS|
|Date:||Jan 1, 2016|
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