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  #1  
Old 10-19-2011, 02:53 PM
aalderman1's Avatar
aalderman1 aalderman1 is offline
 
Join Date: May 2010
Location: Hickory
State: North Carolina
Professional Status: Certified General Appraiser
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Default comp adjustment

I've confirmed a sale (two months old) of an older, brick warehouse not far from my subject; however, it has a few quirks.

1. It sold to a church, which brings up HBU questions since the subject is still a brick, owner-occupied building.

2. The seller took a second lein on the property for a portion of the sales prices.

3. The seller 'gave' $50,000 or so dollars of the sales price to the church for a tax deduction.

The amount actually paid, the second lein, and the charitable donation equal the deed stamps. According to the buyer, the final (combined) price was set by the appraisal.

Should I throw this out or make some Conditions of Sales adjustments?

Advice is appreciated. Ridicule is endured. Wisdom is never rejected.

Peace.
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  #2  
Old 10-19-2011, 03:47 PM
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Metamorphic Metamorphic is offline
 
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State: California
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I had a similar situation with a house. I left it in as an "extra" comp just for curiosities sake. I wanted to see where it fit in when adjusted like the rest of the comps.

The problem with this kind of sale is that the only way you'll know if a Conditions of Sale adjustment is necessary is by comparing it to the other adjusted comps. If its is necessary, the size of the adjustment will be the difference between the existing adjusted price and the predominant value of the other comps. I think for purposes of keeping the IRS off everybody's back, the net (purchase price plus donation) will be close to the MV.

So really the comp doesn't tell you much about the MV of your subject except what the buyer's and seller's agents or appraisers though they could get past the IRS as being a reasonable MV. It does have value as an appraisal curiosity or learning opportunity.
  #3  
Old 10-19-2011, 04:25 PM
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Pittsburgh Pete Pittsburgh Pete is offline
 
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What does the seller have to say? His input and take on the transaction could be helpful.

Was the property offered for sale? At what price?

Lots of interesting questions--bottom line I might use the sale but would refrain from hanging my hat (or anything else) on it.

Good luck.
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  #4  
Old 10-20-2011, 08:20 AM
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aalderman1 aalderman1 is offline
 
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Thanks for the feedback guys. I cannot get a hold of the seller. If I use the sale, it will be 'in support' of more traditional market transactions.
  #5  
Old 10-20-2011, 08:48 AM
PL1957 PL1957 is offline
 
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Quote:
Originally Posted by aalderman1 View Post
Thanks for the feedback guys. I cannot get a hold of the seller. If I use the sale, it will be 'in support' of more traditional market transactions.
Have you tried the buyer? His perceptions are probably more important thatn the sellers.
  #6  
Old 10-21-2011, 12:06 PM
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aalderman1 aalderman1 is offline
 
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State: North Carolina
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The information I have is from the buyer.
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