Considering filing complaint for lack of market conditions adjustment on stale comps

[Mejappz]

I am sick to death of lazy appraisers who will not do even basic due diligence and are often the cause of dead transactions and angst for multiple parties

But those are the ones that get the majority of the work at rock bottom fees and two day turn- times. Thank the Lenders, AMCs, GSEs and HUD for this mess.

 

[djd09]

shaming for coming in low. this is not new. in 2002 many brokers did that. carry on

 

[RCA]

1. My use of the term was to distinguish between condos, attached SFRs, and detached SFRs. These are the three types of products built in the subject neighborhood.

2. Great question. My assumption was this was referring to prices, not volumes. Not to say both can't be moving in the same direction at the same time.

3. In fact there are! I mentioned in a previous comment that because I am a real estate nerd I ran correlations between prices for similarly sized (in GLA), 3 bed, 2 bath or 2.5 bath condos, attached SFRs, and detached SFRs. Nearly 90% between the three, with the highest correlation between attached SFRs and detached SFRs.

Those kinds of correlations can be treacherous, because there can be time lags. If for example, property type A responds positively to certain economic events two months before property type B and by the time that B reacts, property A's reaction has worn off, unless you can somehow shift the sales activity two months ahead for A, you won't pick up the correlation to B. MARS and other software have options for time lags where you can check on these kinds of relationships if you suspect them. But, keep an eye out for that.

 

[George Hatch]

You can compare the respective 5-yr track records of the subject's market segment and those of the other alternatives; condos to bracket the low end and fully detached SFRs on the upper end. That's maybe a 10-minute exercise on the development side, and then you're not basing the entirety of your market analysis of Sales #1 - #3 in the Sales Comparison grid on pg 2 of your report.

That's not too much to ask in a situation where the appraiser is struggling to find recent comparable sales data. Nor does it require the production of charts and graphs for the report.

"Median sale prices for local condos in this size range increased by 2% in the last 12 months, and medians for recently built detached SFRs in this area increased by 3% in the last 12 months." Done.

Anything is better than nothing.

 

[TMG]

Throwaway 12345 is currently the top poster on this forum. Not bad for a newbie.

 

[Alsie35]

Throwaway 12345 is currently the top poster on this forum. Not bad for a newbie.

Fernando woke up this morning and is at it again. The newbie's lead in posts won't last long.

 

[glenn walker]

Standard 2021 Instructions to Realtors and Brokers. Thank you for showing interest in our real estate portfolio and please go online and take our "virtual "tour with our professional tour guide "Shiloh " He will be teaching you how to get your buyers into their dream home.

How To Win The Bidding War On Your Next Dream House.

1. After months of searching, you've finally found your dream home.
2. Have Your Pre-approval Letter In Hand.
3. Make The Highest Offer.
4. Add An Escalation Clause.
5. Write A Personal Letter-Include All The Reasons This One Is Your Dream Home.
6. Drop The Contingencies.
7. Skip The Inspection-That Will Save You $300 Bucks.
8. If all else fails then find an-appraiser who will mix in condos, duplexes, homes, almost anything that will get the value up to the sales price.

 

[CGinMN]

If OP is so concerned with ethics and the credibility of this appraisal, they should have walked from the deal, obtained different financing, or shelled out the whole $70,000 difference. Since instead they chose to benefit from the appraisal as the basis for a $35,000 price reduction, it is particularly loathsome that they would now send it to their state.

 

[Alsie35]

Standard 2021 Instructions to Realtors and Brokers. Thank you for showing interest in our real estate portfolio and please go online and take our "virtual "tour with our professional tour guide "Shiloh " He will be teaching you how to get your buyers into their dream home.

How To Win The Bidding War On Your Next Dream House.

1. After months of searching, you've finally found your dream home.
2. Have Your Pre-approval Letter In Hand.
3. Make The Highest Offer.
4. Add An Escalation Clause.
5. Write A Personal Letter-Include All The Reasons This One Is Your Dream Home.
6. Drop The Contingencies.
7. Skip The Inspection-That Will Save You $300 Bucks.
8. If all else fails then find an-appraiser who will mix in condos, duplexes, homes, almost anything that will get the value up to the sales price.

I chuckled at #8 ... but the rest of it is "dead-on". I am printing it out and giving it to my wife. The personal letter I like especially - people underestimate the power of an emotional appeal. If my seller is military, that letter might give me an edge.

 

[Tru Red]

18 pages of comments in just over a day? You all (Ya'll) must be slow. lol.

Between "Russ" & "NC Appraising" my office is falling over from laughing.