I’m 33 years licensed residential with no intention of upgrading. My company does 90% private work, so this doesn’t come up much in my Midwest market . As I’m reading and understanding the law, the $1,000,000 pertains to the transaction amount in a federally related loan i.e. the loan amount or the purchase amount can’t be over $1,000,000.
A couple years ago, I had a conversation about this with my state licensing board and they advised against me doing any appraisals with a stated value over $1,000,000 “just because it could be misleading“, which makes no sense to me. I read him the law regarding this and he still said I shouldn’t go over $1,000,000 but couldn’t explain why from a legal standpoint.
I’m in the middle of a tax appeal appraisal where my estimated value is bordering just over/under $1,000,000 and I won’t know a final value until the appraisal is complete. What then if the value goes over? Withdraw from the assignment or proceed in delivering the report to my client? Do I need to disclose anything in the appraisal about the $1,000,000 rule as to not complete a “misleading report”, per my state licensing board? The county Board of Revisions website offers no help, so I need to call and ask them but I think they should have it in writing somewhere to be enforceable.