7.5 Million Appraisal

[Ray Miller]

Lets see....

Scope of work--at least two pages (don't forget to explain competency on this assignment)
Photograph pages, most likely over 10 pages
Legal Description, most likely two pages,
Site analysis, a good six pages with exhibits and photographs,
Neighborhood description, a good four pages with multiple pictures,
Market analysis for the subject, three pages,
Regional and City data, three to 10 pages,
Description of the improvements, wow, this one could be 10 pages,
Highest and Best Use analysis, 3-6 pages,
Sales comparison approach with full write-ups of the sales, analysis of the sales, adjustments, 10 pages,
Cost Approach, this should be a doosey.....5 more pages,
Income Approach--is it applicable? Depends on that former 3-6 page Highest and Best Use analysis,
Reconciliation of of the three approaches, 2-3 pages.

Appears to me you have a 60-70 page report and a fee of $15-20,000 since you will most likely be looking for comparables on a regional or even national basis.

If you even think about using a form you (he) might as well hand in your (his) license.

Now you really know everything will fit on a four page form, don't you?

m2: ​

:new_multi:​

 

[William K]

I just had appraisal request come for a 7 Million dolloar property, my partner is certified residential, and even he isnt sure if it would be on a regular 1004 or a nartative. We probely won't do it but would like to know for future reference. This is a Residnetial with 20,000 square feet of living space. The estate has everything from a casino and 50 seat viewing theater to dance floor and 30 seat bar. We are in California

Thanks for the help

Did they ask for a Comp Check first?

 

[Kevin Mc]

Depends.

is it in a neighborhood of $7 million homes that are comparable? Market will dictate approach but even if it can be done on a form, you will be writing a narrative for an addendum. I think you two should go for it. Time to roll your bones.

 

[Lost Cause]

While I don't like forms in general and would argue that a narrative is always a better appraisal report, I don't see why this couldn't be done on a form. I see many large size high-dollar residences done on forms.

 

[Jungle Boy]

I've used forms for multi-million dollar properties - why not?
You can add as many addendum pages as you like.

 

[Richard Carlsen]

You did not say what the Intended Use of the report was.

If it is not for lending consideration, then a Restricted Use Report could be used in addition to a Summary appraisal reporting form (non-FNMA) or a Narrative report.

If it is for lending consideration, what reporting form does the assignment call, for if any?

If the assignment does not specify a reporting form, which form do you feel most comfortable submitting as a credible report of your appraisal?

A lot of variables that only you can decide upon.

 

[Deuce of Spades]

Competency is the key factor. I just turned down a fairly high end assignment for my area job due to my lack of competency within the specific neighborhood for a complex property - I would have called in for some mentor assistance but they wanted the report back in 48 hours (not possible unless you just did something real similar recently) and the fee was just barely ok. Need the work, but not worth the headache.

 

[Richard Carlsen]

Competency is the key factor. I just turned down a fairly high end assignment for my area job due to my lack of competency within the specific neighborhood for a complex property

Competency is certainly a key factor in accepting an assignment.

Credibility of the report is another that appraisers had better start taking a serious look at in the future.

Today, I'm turning back an assignment that I've put the better part of 3 days work in on due to my determination (maybe slow determination) that I cannot produce a credible report under the conditions required by the lender. The conditions are a 1004 FNMA for portfolio lending. The reason I cannot produce a credible report is that I cannot find one relevant sale going back to 2003 within 100 miles. I could produce a credible report using the Cost Approach but the 1004 FNMA requires the use of the Sales Data Approach only and there just are no sales that I consider relevant.

Best to back off an assignment then to push the envelope and come up with something that is not up to the standards.

 

[So Cal RealEstate]

What part of California? I might be interested in taking it.

Id be interested in just going for the experience...

 

[Tom Foster]

I always wanted a casino and a movie theater in my house...

Makes my 6 seat poker table and my 40 inch flat screen seen rather dull.