CNV Turned FHA

[CJ1234]

Did an CNV appraisal--Property A
Contract $235,000
Appraised value $228000 based on six sold, all similar, all w/in 90 days.
Looked at 91-180 days. Found no superior sales.
Provided 3 Pending sales.
Tight Adjusted range.

Doing an appraisal in the same neighborhood, different property. "Prop B"
Pulling comparables.
Subject in assignment A (Above) appears, closed.
MLS indicates $235000 sale price with FHA financing.
Needless to say, I did not perform the FHA appraisal.

I have no idea how the FHA appraiser determined a $235000 opinion of value, unless they went to a different neighborhood.

I also wonder if borrowers stayed with the original lender (with whom I've worked for years, and have very high regards for their underwriting department)

I'm sure I'm now the "Bad" appraiser and the other one is now the "Good" appraiser.

Now, interesting dilemma....Property A is a "perfect" comparable for my second assignment. I'm not using it, as I feel sales price is not justified. BUT, it would be a good comparable. (there are numerous other comps)
AND, any other appraiser would use it....

(Side note, property B, is currently contracted for $222,000)---Haven't determined opinion of value yet.

 

[redfish]

Did an CNV appraisal--Property A
Contract $235,000
Appraised value $228000 based on six sold, all similar, all w/in 90 days.
Looked at 91-180 days. Found no superior sales.
Provided 3 Pending sales.
Tight Adjusted range.

Doing an appraisal in the same neighborhood, different property. "Prop B"
Pulling comparables.
Subject in assignment A (Above) appears, closed.
MLS indicates $235000 sale price with FHA financing.
Needless to say, I did not perform the FHA appraisal.

I have no idea how the FHA appraiser determined a $235000 opinion of value, unless they went to a different neighborhood.

I also wonder if borrowers stayed with the original lender (with whom I've worked for years, and have very high regards for their underwriting department)

I'm sure I'm now the "Bad" appraiser and the other one is now the "Good" appraiser.

Now, interesting dilemma....Property A is a "perfect" comparable for my second assignment. I'm not using it, as I feel sales price is not justified. BUT, it would be a good comparable. (there are numerous other comps)
AND, any other appraiser would use it....

(Side note, property B, is currently contracted for $222,000)---Haven't determined opinion of value yet.

Use it. This is where the USPAP thing comes up (I'll let the USPAP instructors have little fun with me if they disagree). I would disclose my knowledge of the transaction without indicating that I completed an appraisal on the property. Disclose that you have viewed the interior of the property near the time of sale analyize the sales price. You know what you appraised it for and you know what it sold for but you can't very well say that the property was only worth 228,000 in your report and reconcile it as "it sold over market value", but you can place more weight on comparables you deem to be more accurate indicators of value based on the knowledge you do have.


Hopefully that makes sense but rereading it now I don't know if it does.

 

[CANative]

Maybe the buyer came up with some more cash.

 

[CJ1234]

Maybe the buyer came up with some more cash.

Checked, Loan amount was $204000 (MN MLS discloses this).

 

[CANative]

What does the loan amount have to do with anything? Maybe they paid the full price and instead of putting $xx down they put $zzz down because the appraisal was less than needed for the loan they had in mind.

 

[redfish]

What does the loan amount have to do with anything? Maybe they paid the full price and instead of putting $xx down they put $zzz down because the appraisal was less than needed for the loan they had in mind.

I thinks the pointe is that the appraisal he completed was not FHA.

 

[Don Clark]

Use it. This is where the USPAP thing comes up (I'll let the USPAP instructors have little fun with me if they disagree). I would disclose my knowledge of the transaction without indicating that I completed an appraisal on the property. Disclose that you have viewed the interior of the property near the time of sale analyize the sales price. You know what you appraised it for and you know what it sold for but you can't very well say that the property was only worth 228,000 in your report and reconcile it as "it sold over market value", but you can place more weight on comparables you deem to be more accurate indicators of value based on the knowledge you do have.


Hopefully that makes sense but rereading it now I don't know if it does.

I won't even bother with the possible USPAP violations in what you propose. The fact that another appraiser has an opinion of what the properties value is and should have sold/closed for means nothing. Opinions are like a just that, an opinion. A closed sales price is a fact. If the OP believes it is necessary to discount the sales price due to incentives or some other reason then fine. Make the adjustments based on that, not his opinion of what the value should have been.

 

[nstanbru]

Did you verify the sales price with another source other than MLS? I'm not familiar with your area, but, is a 3% differential in opinion an usually high amount?

 

[redfish]

I won't even bother with the possible USPAP violations in what you propose. The fact that another appraiser has an opinion of what the properties value is and should have sold/closed for means nothing. Opinions are like a just that, an opinion. A closed sales price is a fact. If the OP believes it is necessary to discount the sales price due to incentives or some other reason then fine. Make the adjustments based on that, not his opinion of what the value should have been.

Oh Don,

Numerous violations?

I wasn't saying to make adjustments to the comparable based on an opinion in another assignment but to rather base his reconciliation of the sale price of the comparable as it relates to his final value opinion on what is personally known about the property, his own opinion of the properties value was based on other competing properties that sound as if would compete with the current subject property.

Lets say the property being appraised is a model match to the property that was previously appraised, all things being equal knowing what you know about the property history and your own conclusion of the value of that property would you then opine a value that was $235,000 for the current assignment.

What are the numerous violations you speak of.School me, I love free education.

 

[Mr Rex]

Go get em bull dog. Some A-hole appraised the same property you did for a whopping 3% more than you did. You know you are right, hang that sorry sumbeech at sundown.