7.5 Million Appraisal

[Lloyd Bonafide]

Is that a casino in the picture, or some kind of a brothel?

I assume the home was rebuilt or enlarged, but what will take some explanation is why the MLS says 20,000 s.f., and Realist says 3538 s.f., and especially, why was the original list price $5,000,000 in 2006, later reduced to $4,000,000, and now $8,000,000? I don't know this area of Orange County very well, but it's definitely not Beverly Hills. Something seems very fishy.

 

[Joyce Potts]

Regardless of the format, it all requires the same level of competency.

For all the form poopooers--my suggestion is to do the narrative, but shrink down the 1004 grid and utilize it.

In the end, what real difference does it make other than the pomp and circumstance of justifying a higher fee?

Substance over presentation should be your focus, IMO.

 

[PropertyEconomics]

Id recreate the grid in a table format with all the other adjustments or features that may be required of a property of this magnitude. I dont think there is any way to reproduce the 1004 grid and do this property justice. Again just my two cents .. which today are on sale for a penny.

 

[Joyce Potts]

Id recreate the grid in a table format with all the other adjustments or features that may be required of a property of this magnitude. I dont think there is any way to reproduce the 1004 grid and do this property justice. Again just my two cents .. which today are on sale for a penny.

Um, yes there is. What other catagories would you suggest adding that aren't already included in a standard FNMA 1004?

 

[Abester]

pomp and circumstance of justifying a higher fee?

Charge the high fee for the development of the opinion and give the report for free (or $200).

 

[PropertyEconomics]

Um, yes there is. What other catagories would you suggest adding that aren't already included in a standard FNMA 1004?

Ive never seen the line for Casino on the 1004 ... perhaps I just missed it.

 

[Kevin Mc]

Zm.

I would PERSONALLY never submit an appraisal on a property of that complexity or value range on a FORM!! It leaves a bad taste in my mouth to think that some PROFESSIONALS would even think that the FORM would be a viable option.

Perhaps you didn't read all the posts. A home like this is NO BIG DEAL in my market. It isn't that complex in certain markets, just big. $7 million and 20K sf ft. may seem off the charts to you but as Ken Rossman stated, in our market it is a $1000-1500 job that can be done in a very long day ON A FORM and we do them fairly regularly(although not regularly enough these days)

 

[Joyce Potts]

Ive never seen the line for Casino on the 1004 ... perhaps I just missed it.

I guess I missed that fact. That said, how does the 'casino' directly impact the value of the subject property that isn't already inherently recognized in the comparable sales, pendings or listings within the same complex?

 

[PropertyEconomics]

I guess I missed that fact. That said, how does the 'casino' directly impact the value of the subject property that isn't already inherently recognized in the comparable sales, pendings or listings within the same complex?

I think its an estate and not a complex. I think the Casino and the 50 seat theatre are on the property. Maybe I have misread the posting.

 

[KenRossman]

The thing is Zm, while the property in question may well be complex in Podunk MS, it would be very far from complex in many areas where such a property is the rule rather than the exception. I take a great deal of pride in my work, however I also endeavor to provide a reasonable work product to my clients, priced to reflect the scope and valuation problem at hand.

The potential accuracy of an appraisal has nothing to do with whether a narrative or form are the underlying format. The modern forms, particularly the multi-purpose variety, allow the appraiser to add as much narrative comment as deemed required.

IMNSHO, you are way off base...

As far as the market for the property, I have no idea. But, as for the narrative vs. form debate I say go narrative. I would PERSONALLY never submit an appraisal on a property of that complexity or value range on a FORM!! It leaves a bad taste in my mouth to think that some PROFESSIONALS would even think that the FORM would be a viable option. It seems that more and more appraisers are always looking for a short cut to get the report finished as quick as possible, no matter how it looks, as long as the numbers are right. PERSONALLY, I take great pride in the narrative reports we produce and I whole heartedly wish others would also take some PRIDE in their work product. This is not intended to be a slap in the face at anyone in general, just stating my not so honest opinion.