Questions about outbuilding value

[Terrel L. Shields]

Turn the appraisal into the state.

 

[J Grant]

The OP and buyer are 15k apart - - a MV of 435k and a sale price of 450k. Is it worth losing a deal to this buyer? The seller has no control over what the buyer decides.

. With regard to the seller, they are not paying a RE broker commission, which they might have to if they try to market it again. See what happens with the ROV and proceed from there.

 

[sputnam]

Hi all, and thank you in advance for your time. I am currently contracted to sell our farm, and unfortunately the appraisal came in lower than the contract price. After reviewing the appraisal report, it appears to me that the appraiser found great comparables, as I expect this can be difficult in rural areas.

Where I'm confused and feel like I should respond in some way, is that the appraiser only gave a 20k adjustment for the outbuildings on the property. Said outbuildings include a 100'x30' 9 stall horse barn with 2 garage bays, an office, hot water, and electricity and a 30'x40' metal quonset hut in like new condition. There are a few other sheds on the property as well, but they are small enough to likely be ignored.

I recognize that I'm not at all an expert, so I'm here to gain further understanding, and maybe learn how to to respond in my ROV without coming off offensively or like a know it all civilian. The appraisers notes say that the outbuildings were not given much value because of their poor condition, but as I stated, the quonset hut is like new and the horse barn is cinder block construction and in perfectly useable condition. These are significant selling points for the property.

Please forgive me if I'm asking a dumb question!

It's not clear from your post who the appraiser's Client is. If the appraisal was done so that the buyer could get a loan, you probably have no standing to question the valuation. The Client may, or may not, allow you to submit an Reconsideration of Value. If you are allowed to, your ROV should be based on data. Simply disagreeing with the appraiser about their conclusions won't get you anywhere. Even if you have data supporting your disagreement with the appraiser, at the end of the day, only the appraiser can decide and change the opinion of value.

 

[brokenokie]

It's not clear from your post who the appraiser's Client is. If the appraisal was done so that the buyer could get a loan, you probably have no standing to question the valuation. The Client may, or may not, allow you to submit an Reconsideration of Value. If you are allowed to, your ROV should be based on data. Simply disagreeing with the appraiser about their conclusions won't get you anywhere. Even if you have data supporting your disagreement with the appraiser, at the end of the day, only the appraiser can decide and change the opinion of value.

Thanks so much for your reply! As was stated later in the thread, I was allowed to submit an ROV, and with the help of another appraiser, I submitted much better and newer comps than the original appraiser used. Waiting to see what comes back.

 

[Zoe]

Thanks so much for your reply! As was stated later in the thread, I was allowed to submit an ROV, and with the help of another appraiser, I submitted much better and newer comps than the original appraiser used. Waiting to see what comes back.

I don't doubt the lender of the borrower accepting an ROV from you. They might would take a new appraisal from the appraiser that helped you when requesting ROV.

I don't doubt that at all and especially since the buyer had already signed a contract with you. I would not bet my life the original appraiser will not adjust their opinion of value after your ROV was submitted and the lender contacts them for the ROV.

ROV and 2nd appraisal is/are pretty much the lender's options.

 

[Tom D]

If the original appraiser don't change, then it don't change no matter how many appraisal you do. They go with the original, or the lower of 2.

 

[Zoe]

If the original appraiser don't change, then it don't change no matter how many appraisal you do. They go with the original, or the lower of 2.

You may be right. I don't know for sure. I remember all of this coming up after appraisal bias hearings and them saying do ROV or do 2nd appraisal. Borrower may have to switch lenders then if they still want the loan for the contract price and agree with the appraiser that the seller got to help them.

 

[TerryRohrer]

If the original appraiser don't change, then it don't change no matter how many appraisal you do. They go with the original, or the lower of 2.

That simply is not true. On either count.

 

[Zoe]

That simply is not true. On either count.

I don't think so either. Everything is still in the lender's hands at the moment. They have not sold the loan or anything.

They have not even made the loan yet.

 

[BRCJR]

That simply is not true. On either count.

correct...they are to rely on the appraisal report deemed most credible.