Comparable Square footage and public records do not agree

[sputnam]

Heated does not require there to be duct vents in the room. The space in the photo has incidental heat. While it appears to meet the definition of GLA... heated, finished, and above the ground... it also may have lower quality finish than the main parts of the dwelling. There is a reason that the Cost Approach on the 1004 has two lines for square foot costs.

 

[J Grant]

Heated does not require there to be duct vents in the room. The space in the photo has incidental heat. While it appears to meet the definition of GLA... heated, finished, and above the ground... it also may have lower quality finish than the main parts of the dwelling. There is a reason that the Cost Approach on the 1004 has two lines for square foot costs.

Agree wrt the heat.

There is also a reason that the cost approach and the sales comparisons approach are different categprs. as well as the reason why the SCA is the approach relied on for res lending appraisals - what counts in the SCA is what the buyer paid for the property, regardless of whether some components of it cost less to build or cost more to build.

Idk what the comp's price was relative to other comps of similar size- that can be commented on if relevant..

 

[Tom D]

I love it when the realtors add the finished basement to the GLA. However, here they are only allowed to use public records GLA which is mostly accurate.

If you actually know a comp GLA is different, you use that correct GLA, but put a comment on your addendum why it is different. That all, and put a note on the listing sheet work file. That photo is a little over the top of being nervous.

Funny thing about CU. It will still ding you for your GLA being different from the group thought, that why you make a slight comment why.

Oh and ansi. Miss ansi make many properties being sf off from the public record sf number around this non ansi area.

 

[MHansen]

I love it when the realtors add the finished basement to the GLA. However, here they are only allowed to use public records GLA which is mostly accurate.

If you actually know a comp GLA is different, you use that correct GLA, but put a comment on your addendum why it is different. That all, and put a note on the listing sheet work file. That photo is a little over the top of being nervous.

Funny thing about CU. It will still ding you for your GLA being different from the group thought, that why you make a slight comment why.

Oh and ansi. Miss ansi make many properties being sf off from the public record sf number around this non ansi area.

I was just attaching the photo on here for reference. I wouldn't put it in my report. I just added my comment and let it be. I'll see if it comes back with conditions and deal with it then.

I do appreciate everyone's input. Thank you.

 

[gregb]

Thanks for the update. If you get a revision request, it will be fun for us to deal with it with you.

 

[Surf Cat]

I would do what J Grant stated in post number 10. After all, this is a comparable sale and not the subject property you're appraising. It's been accepted by the market with its non- permitted addition. Enter the comparable's MLS GLA, explain and move on.

My question is, is this comparable with the non permitted addition the only sale that brackets the subject's GLA? Imo, you need a competitive sale that's like the subject with equal bedroom and bath count, very similar in GLA, with no Shenanigans going on.

If you have to go back in time 16, 18, 24 months, so be it. Even if you have to go to an alternative, competitive neighborhood, get a sale that's similar to the subject without issues.

Don't have this sale be the only sale in your report that's similar to that of the subject..... as another poster stated above, one sale doesn't make the market.

 

[Tom D]

To the poster. Good thinking. You always comment why on something being different, or unusual, to avoid being stiped. You did it right. Sometimes you don't know what they are going to ask, even if you give them an answer. On odd appraisals i do the best i can, and wait for them to come back with any specific questions. Sometimes it's a question that makes no sense, or something else that bother's the underwriter. I think i have every answer from every underwriter question asked already in my report, no matter how dumb. Sometimes i do learn something from the stip that makes sense. Now i never get stiped. I suppose that's why my 8 page, long time ago, report is now over 30 pages long. But i do mostly little urban row homes with only a couple of adjustments, my lucky privileged appraiser life.

Also, there are lenders who are more tolerant than others. All of my direct lenders seem happy with my reports. Any new lender that annoys me with stupid stips is stiped off my client list.

 

[ZZGAMAZZ]

Take it from someone who worked in a County Assessor's Office, so called "Public Records" are a nightmare! The problem is that the auto-reviewer and underwriters take that reported GLA as the gospel. You may use my universal "go pound sand" GLA statement to ward off the inevitable stips:

The Gross Living Area stated in this report may or may not agree with Gross Living Area published by the tax assessor, the MLS, or the builder for the subject or for the comparables. Comparable GLA figures varied from MLS, building permit and tax roll records. The most reliable number for each comparable was selecteed

Wouldn't the appraiser wish to clarify what obviously is boilerplate verbiage, e.g., "For exmple, a variance exists in the GLA of comparable zzz that is zzz sf per the Assessor but xxxx per the MLS listing..." This appraiser is reporting xxxxxx based upon results of his/her due diligence that revealed ......" [and possibly that] the significance of the adjusted value of that comparable consequently was diminished..."

 

[Mark K]

What does the markets say about the contributory value of the unpermitted area? Just curious, do you check for permits for all of your comps?

 

[Tom D]

What does the markets say about the contributory value of the unpermitted area? Just curious, do you check for permits for all of your comps?

I don't check for any permits in this big urban city. Many little GLA row home had the rear shed, once the outhouse, converted to enlarge the kitchen. If report was based on permits i suspect most homes here didn't get permits for any work done on their homes. So, we would now have a mortgage desert.

In my report i have stated in several places that i didn't check for permits. And if the buyer having my report doesn't go look themselves. And come to think about it, i have never seen a home inspection report where permits are mentioned.

MLS here is law savey. They only use public records, of which the agent cannot change. And what is ansi.