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APPRAISAL GUIDELINES |
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SBA now requires the appraisal to be addressed to both the Third Party Lender
AND to the CDC or SBA.
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When issuing your appraisal engagement letter, please instruct the appraiser to include Northwest Business Development Association and the U.S. Small Business Administration as authorized users of the report.
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Since building improvements are involved with this project, please provide the contractor’s bid to the appraiser, and have the appraiser provide three values in his report: 1) market value on an as-is basis for land only; 2) market value on an as-is basis for land & building; and 3) market value of land & building at the completion of improvements.
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Lastly, please instruct the appraiser to use at least 2 of the 3 appraisal methods (cost, sales, and income approaches). If the appraiser does not include all three approaches, the appraiser must include in the report why the other approach was not used.
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If the project involves improvements that will be equal to or greater than 1/3 of the cost of the land & building, then Please instruct the appraiser that SBA will need the appraiser to complete the attached Post-Construction Certification form once the construction is complete.
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Post Construction Certification
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Effective Rates Estimated
May 2013
20 Year Rate: 4.15%
10 Year Rate: 3.61% |
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