Landy Insurance published an article written by Jennifer L. Markowski, a partner at Peabody & Arnold LLP, titled “Marijuana and the Residential Appraiser.”
Although Virginia has not legalized marijuana, the guidance within the article is worthy of sharing. Appraisers need to be cautious when describing or reporting marijuana growing on a property.
“While the mere existence of a marijuana plant is unlikely to affect the appraisal of a property, the sometimes elaborate lighting and irrigation systems used to cultivate the plants might.”
The article additionally warns appraisers to be very cautious when lenders have specific criteria pertaining to marijuana outlined in their engagement letters. Appraisers should not opine unless they are specifically trained in plants and their cultivation. See the article on Landy’s Blog here.