Unadjusted values don't bracket the subject's value

[Zoe]

How do you say the subject was a pos and I couldnt find other pos comps so my comps which are great adjust down but are bracketed by the adjusted values so who cares.

you work for VA. VA don't require that. However, I try to in sales comparison approach most times even if I have to go to far inferior competing area.

Remember sales comparison approach is only one approach possibly applicable to appraisal assignment.

 

[Surf Cat]

Bracketing provides an analytical approach to valuation, and helps prove the appraiser’s impartiality. If you include comparables which are both inferior and superior to that of the subject, it would be hard for anyone to accuse you of undervaluing, overvaluing, or appraising with bias. Additionally, it helps with extracting market adjustments.

If your opinion of value is for $625,000 and all the gross sales prices of your comps sold for over $675,000 which caused you to make across the board, downward adjustments….then all of your comps su*k for the same reason. It's like having all 4 bedroom comps when the subject has only 3.

Having said all that, I typically appraise in suburban areas. I assume a different methodology would need to be utilized for you rural appraisers out there.

 

[J Grant]

Bracketing provides an analytical approach to valuation, and helps prove the appraiser’s impartiality. If you include comparables which are both inferior and superior to that of the subject, it would be hard for anyone to accuse you of undervaluing, overvaluing, or appraising with bias. Additionally, it helps with extracting market adjustments.

If your opinion of value is for $625,000 and all the gross sales prices of your comps sold for over $675,000 which caused you to make across the board, downward adjustments….then all of your comps su*k for the same reason. It's like having all 4 bedroom comps when the subject has only 3.

Having said all that, I typically appraise in suburban areas. I assume a different methodology would need to be utilized for you rural appraisers out there.

Imo, many of the examples given do not indicate a different methodology for rural areas. If a 10,000 SF luxury house is the only one around for 10 mile radius in a rural area, it is not rocket science to see it is not conforming.

I appraise in a number of semi-rural areas, 10 acres avg, and some small arms farms and the same problem applies to unusual properties even in a built-up area are their own market niche. Regardless of whether suburban, rural or urban, the property conforming for the area is a simple question to answer.

A 20-acre farm with a 900 sf house is nonconforming in a built-up suburban area of 2000 sf houses on 10,000 SF lots, and a 2000 sf house on a 10,000 SF lot would be non-conforming in an area of 20 pus acre farms with houses in the 900 SF range

There is no excuse for an appraiser not to understand the question or be able to answer it in any area. That is why the appraisal methodology is the same across markets and geo areas and price ranges

 

[azbassman21]

i bet there are comps. There are almost always are comps. What is so POS about the subject that you can not find similar sales? Did you search back a year or expand the size or sf or distance?

From doing hundreds of reviews when appraisers had pushed values using all superior comps with downward adjustments in a search was always able to find comps similar to the subject - how come I was able to find them and they claimed none were available? It was embarrassingly easy most of the time. A few expanded searches was all it took.

Sometimes common sense must prevail over a reviewer's checklist of items that must fit within their shoebox. So you find one 9 miles away sold more than a year ago 20% smaller. What does that prove?? Been there where there just aren't any good sales, you find one most similar and justify off of that.

 

[J Grant]

Sometimes common sense must prevail over a reviewer's checklist of items that must fit within their shoebox. So you find one 9 miles away sold more than a year ago 20% smaller. What does that prove?? Been there where there just aren't any good sales, you find one most similar and justify off of that.

It is not about the reviewer's checklist. The AMC's sure did not contribute anything to understanding how to appraise. We don't do things just for a review checklist, we do them because they are the methodology made to analyze value and appraise properties

Find a similar sale 9 miles away and :"justify off that "It depends on the area and property type if that makes sense but let's say it does, then one has to see if properties in the 9 mile away area sell for more or less than in the subjects' more immediate area and then apply an adjustment if that is the case and explain why one went 9 miles away. Is the area rural, is the subject nonconforming or unique, why did you have to go 9 miles away for a comp?

A neighborhood is not a reviewer's shoebox. It exists and needs to be analyzed in relation to our subject. Then it is simple to understand why we went further out of the neighborhood for comps . It is disheartening to see how the lousy AMC influence ruined appraising wrt why we are even doing something.

 

[George Hatch]

If the limited amount of data and analyses in an SC grid comprises the entirety of your analysis then you're doing it wrong.

 

[Mike Ault]

If the limited amount of data and analyses in an SC grid comprises the entirety of your analysis then you're doing it wrong.

Sometimes they're simply failing to read your report and don't really understand what they're supposed to be doing. A relocation company reviewer for one of my assignments had a checklist item for the sales comparison approach that read, "which comparable did you weight your value to, and why?". I told him that the report contained several pages of market analysis along with listing support, my value was derived from reconciling all the market data provided, and I didn't weight my value to a single comparable in the sales comparison approach. My reasoning & methodology was properly reconciled and thoroughly explained in the report, however this reviewer couldn't see the forest for the trees. Similar to the reviewer concept of "bracketing", he thought that appraisers should automatically identify one sale as the best indication of value, and base their opinion of the "anticipated sales price" solely on it. Makes it easier to review, I suppose, but somewhat disheartening at times to learn what they're used to seeing from your competition.

 

[Zoe]

Sometimes they're simply failing to read your report and don't really understand what they're supposed to be doing. A relocation company reviewer for one of my assignments had a checklist item for the sales comparison approach that read, "which comparable did you weight your value to, and why?". I told him that the report contained several pages of market analysis along with listing support, my value was derived from reconciling all the market data provided, and I didn't weight my value to a single comparable in the sales comparison approach. My reasoning & methodology was properly reconciled and thoroughly explained in the report, however this reviewer couldn't see the forest for the trees. Similar to the reviewer concept of "bracketing", he thought that appraisers should automatically identify one sale as the best indication of value, and base their opinion of the "anticipated sales price" solely on it. Makes it easier to review, I suppose, but somewhat disheartening at times to learn what they're used to seeing from your competition.

I think that is what happened in the California case. Very educated homeowners and they did not think the appraisal report made sense. Now, on the other hand they liked one appraiser and did not like the other. Still wonder if first appraiser worked for AMC. LOL

 

[Zoe]

Trust me people. It is well worth time to spend time with homeowners on appraisals.

Believe it or not. Your choice.

 

[Zoe]

Always keep MV def in perspective if that is your def of value