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Appraising For Refi Of House....

Discussion in 'General Appraisal Discussion' started by Mister Ed, Dec 28, 2004.

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  1. Mister Ed

    Mister Ed Senior Member

    0
    Jan 24, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Georgia
    Got an order last night welcoming me back from my much desired vacation.

    Pulled tax and MLS information (purchased by current owner on 6/3/04 per tax & MLS)

    Subject (per tax/MLS) is a 4/2 with 1771 GLA (no pool)

    Purchase price: $128,000.
    HO's Estimate of Value: $150,000 (Per order form)

    Pulled sales in the subject neighborhood for last 9 months. (20% GLA+- all ages within 5 years). All of the current sales are within 1/2 mile and only one is over nine months as was necessary to bracket recorded GLA on the high end.

    The first sale on my list is the subject (as described above)

    3/2 1557 GLA for $84,000
    3/1 1616 GLA for $56,300
    3/2 1778 GLA for $81,000
    3/2 1509 GLA for $93,000
    3/1 1724 GLA for $77,000
    3/2 1582 GLA for $109,000


    Got curious and pulled sales for 12 month period prior to sale of subject using the same parameters. Here they are in order of proximity (closest to farthest).

    3/1 1662 GLA for $76,000
    3/2 1545 GLA for $90,000
    3/2.5 1856 GLA for $90,000
    3/2 1509 GLA for $93,000
    ----above this line less than 1/2 mile; below this line more than 1/2 mile
    4/3 1980 GLA for $109,000
    3/1 1828 GLA for $130,000 (pool)
    4/2 1964 GLA for $122,000 (pool)

    In both cases, other sales from superior neighborhoods (I have appraised over 20 homes within 2 miles of the subject in the past 9 monhts) available within one mile have sold for approx $165+ in the past 18 months.

    I openly confess that with the current sales or the subject that I only have MLS/tax information and have not personally inspected any of them, so I realize that there is room for error in my initial assessment. It looks to me, though. that the owner of the subject is in over his head unless the GLA is considerably larger than that of the comparables (there are houses up to 2300 GLA in the neighborhood).

    I know this will be a can of worms. I am debating declining the order because of the potential headaches.

    Just fishing for thoughts here.
     
  2. Restrain

    Restrain Elite Member

    7
    Jan 22, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    Get paid in advance, then do it.

    If they ask why it wasn't worth $122,000 (as it seems), just tell them it wasn't worth it in the first place. You might even put that in the analysis of previous sales.
     
  3. Otis Key

    Otis Key Elite Member

    0
    May 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    I'm like Roger - get paid up front (CASH) and then include all 6 sales along with a one line printout of the sales showing the SF, date of sale, SP and if it's got a pool and other pertinent factors in an attachment.
     
  4. Chris Colston

    Chris Colston Elite Member

    0
    Jul 24, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Gotta agree with Otis and Roger. Don't just turn it down because the intial reasearch makes you uncomfortable. Get paid, make sure the check clears by cashing it and do the job. Otherwise, you might be caught in the old problem of accepting a job based on a predetermine outcome, even though you turned it down.

    Can't make even the original sale price, so you turn the job down??? Come on Ed, you're better than that. I think you're still in a vacation induced haze. :rainfro:
     
  5. CANative

    CANative Elite Member

    62
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Besides, half the work is done (finding the comparables.)
     
  6. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
  7. Mister Ed

    Mister Ed Senior Member

    0
    Jan 24, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Georgia
    I guess I just really dont want to end up with all of the hassles that will be included in the headaches that will follow the situation. That is why I would turn it down--or just give it to my boss and let him handle it (that's a thought--since he makes the bigger $$$).

    I know how to do it and do it right--and will if my boss does not want it. I know that there will be a BOAT LOAD of heat that will come with it.

    COD--that is the standard for me.... and this lender is not an exception to that standard... they are from the opposite side of the country!


    Greg wrote:

    Well, I know where the sales are, anyway....
     
  8. Mister Ed

    Mister Ed Senior Member

    0
    Jan 24, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Georgia
    Roger,

    I started entering basic data into a report tonight (inspection scheduled for 12/30 at 2pm).

    I have not put it into the report yet, but I have typed (in MS Word) about a 1.5 page analysis of the sales within the market area (including a location map) and the sales outside of what what would be the market area but within one mile. I did this for the current sales for today and the current sales for the time of sale of the subject.

    From my earlier post, the two highest sales appear to be flips. I need to take a closer look at that before I complete that analysis.

    I did not ask my boss to take it over. I will have him scrutinize it for me, and I have asked another appraiser (from outside my office whom I feel I can trust) to also scrutinize it as well.

    I am going to ask the owner if he has a copy of the last appraisal and see if I can borrow it to review to assist me with my analysis.

    We will see what happens from there. Around here, tax records are often inaccurate, and MLS listings are questionable as well.

    I just dread the calls from the lender. I have heard the song before, and this verse will go something like: "The owner just bought it six months ago for $128k and you are telling me it is has lost about $xx,xxx in value in six months? That can't be right. Properties in Jacksonville are appreciating by x percent per month."

    I had such a great holiday with my family. That is why I absolutely did not want to do this one with its inherent headaches and the fact that I will be working on it over the New Year's Day weekend....

    Thanks for letting me bellyache!!!!
     
  9. Will43

    Will43 Senior Member

    0
    Aug 13, 2003
    Professional Status:
    Licensed Appraiser
    State:
    Ohio
    Ed, I agree. Screw it! I don’t want to deal with any POS loan officer that is trying to pull a scam over the holidays.
     
  10. Laurie Norman

    Laurie Norman Junior Member

    0
    Dec 18, 2004
    Professional Status:
    General Public
    State:
    South Carolina
    ..........
     
    Last edited: Jan 23, 2007
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