Home Appraisals and Cannabis

– Crystal Vagnier – Select Group – Writer/Editor

As Federal and State laws adjust to cannabis regulation, many people may be wondering if it will be an issue if an appraiser sees pot growing at a property. So, will it be? The answer isn’t so simple. There are different options appraisers and lenders can take if they see pot being grown at a home. It is not legal to grow cannabis commercially at a residential property, but the question of how many plants are satisfactory to obtain a federally-backed loan is one that should be asked of your loan officer. As most lenders and appraisers are not specialists in agriculture, some may conveniently ignore mentioning specifics as they do not want to get stuck with identifying every plant. As it is also personal property, some appraisers, since they are not code enforcement officers, will respect the seller’s or borrower’s privacy to not divulge personal details.

On the flip side, many appraisers or lenders may be turned off by the potential complications of what to say or do and decline to work on the appraisal. In a best-case scenario for hesitant lenders, appraisers may doctor photos or ask for the plants to be removed. Some banks have outright declined to lend loans with marijuana on site, but a majority of lenders have chosen to remain silent on the issue thus far.

The landscape is changing rapidly and the issue is still uncertain; call me today to discuss your current options.

1 Comment on Home Appraisals and Cannabis

  1. Richard Nolle // June 2, 2018 at 2:57 am // Reply

    Are homes subject to property seizure and forfeiture by the federal government for an illegal grow?

    Sent from Yahoo Mail on Android


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