The Buzz on Marijuana Grow House Reporting

Tuesday, December 9, 2014
Dave Towne

This topic is sure to elicit many opinions, both “fer & agin” regarding notifying your lender client about marijuana plant growing prior to completing an appraisal of a property upon which you observe this activity…especially if you see more than the MAXIMUM allowed in your state (see the chart in the article below).

I've had this discussion with Washington State appraisers after our initiative was successfully passed.

Some appraisers frankly don't give a rip about potentially illegal or property damaging activities, and only believe they are there to 'appraise the real estate.'

Others understand that we are the 'eyes and ears' of the lender when we enter a property on their behalf, and need to inform the client (in advance of report completion) when MJ activity noted above (and in the chart) is observed. Many lenders WILL NOT lend on any property where MJ is growing due to Federal Laws, so it's best to give them a 'heads up call' right after the inspection. Let them decide if a completed appraisal of the real estate is needed. (If not, you need to be properly compensated for your time spent doing preliminary research and the inspection, including travel.)

Below are two articles you may wish to consult. The second has a nice chart of MJ laws for the states which have such in place now.

Nationalmortgageprofessional.com

Irem.org

I would love for appraisers to let the Appraisal Buzz and myself know your thoughts on this. We would like to do an article on how it is truly affecting appraisals.

Email comments@appraisalbuzz.com with your thoughts and we could choose your quote to use for the article.

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Closing Words:
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