No good comps.

Discussion in 'General Appraisal Discussion' started by Sheridan, Nov 2, 2009.

Thread Status:
Not open for further replies.
  1. Sheridan

    Sheridan New Member

    0
    Oct 28, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Need your help.
    I'm appraising a property that was purchased in 2006, 1250sf, updated, on a small lake (no power boats allowed). Surround sales are non-lake, no nearby lake sales.. the subdivision next street over does not have the same appeal as subject's..what do you suggest?
     
  2. OSU Beavers

    OSU Beavers Elite Member

    6
    Jan 10, 2007
    Professional Status:
    Licensed Appraiser
    State:
    Oregon
    Go back more than a year for a fourth comp.
     
  3. jay trotta

    jay trotta Elite Member

    3
    Feb 8, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Connecticut
    maybe 5th & 6th, but you will need something (lake front) similar......do what you need to do to gather the data and explain why
     
  4. Mike Garrett RAA

    Mike Garrett RAA Elite Member

    1
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    Consider other locations with same amenity.
     
  5. panappr

    panappr Senior Member

    1
    Dec 5, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Have to agree with Beavers first..... and Mike second.... I'd go back 1 year for that 4th comp then consider leaving the area. Had a similar situation on a golf course where I did both.
     
  6. MDAPPR

    MDAPPR Member

    0
    Mar 10, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Try no comps in 5 years in a rural area and the next town is over 20 miles away.
     
  7. Metamorphic

    Metamorphic Senior Member
    Supporting Member

    12
    Mar 15, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Go back to whenever you have a good selection of lake comps. Do an analysis by the method of you choice comparing subjects lake sales with sales from where you have them now. Next do the best possible analysis of market trends far enough back to catch the last two lake sales.

    Now grid the two lake sales and use the market data to adjust for time. Grid the 2 best non lake comps from the last year or 18 mos, then grab the two most recent sales from the non lake area and adjust them based on the location adjustment. That's about the best you can do.
     
    Last edited: Nov 4, 2009
  8. kimcha

    kimcha Sophomore Member

    0
    Feb 12, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Utah
    Others here will not agree with me, and name call or whatever, it's alright. But my advice would be to walk away from the assignment. I've had to do it a few times in the past 26 years, and sometimes it's the best course of action.
    I assume you are doing the asignment for a lender, and so at the end of the day, you have to put three comparables on the Fannie / Freddie form. If there are none, or only one, you just can't do it. Oh, you can explainand explain why there are none available, and try using listings and pendings, or solds from very different areas and making all kinds of crazy adjustments, but unless you are comfortable defending one of those in court, I wouldn't do it.
    I had one this spring, which sounds very similar to the one you are doing, and I walked away from that assignment. It's the first one in 5 or 6 years, but it happens.
     
    Last edited: Nov 4, 2009
Thread Status:
Not open for further replies.

Share This Page