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A job with some thought

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jtrotta

Senior Member
Joined
Jan 16, 2002
did a job a few days back, thought it was interesting, so here ya go;

Sale Price- $160,000 original List @ $119,900; Realtor said we got 3 offers and one was above the final accepted offer.

1- area sales won't support any more than the original asking price
2- the offers were made by (3) different people with three different agents
3- the sale is located in an area (and we've worked this area for ten years) where the sale of similar housing is truly a "rare find"
4- oh yea, the Buyer is an area Banker

Question; how would you approach this problem :?:

8)
 

Scott Warner

Freshman Member
Joined
Oct 20, 2002
Professional Status
Licensed Appraiser
State
Pennsylvania
Let the market do the talking and communicate your findings with your client. If you truly have a marketability issue, a prudent lender will not make a bad loan decision.
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I will be a bit more serious this time. I have to assume with the offers that this is a desirable home and/or neighborhood. Just because there are no sales doesn't mean the value is not there.

I would have to look for similar neighborhood farther out. Then if that didn't pan out I guess I would try to use the cost approach. Of course you may not have accurate land values to work with. Which leaves your proffesional opinion. I would also take into consideration tax appraisal if they are anywhere near accurate.

Sometimes there just isn't much else to work with.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
I would view the assignment as a time bomb.
I'd look at my opportunity cost (watch football
game v. a few more dollars and a lot of income
taxes and a big potential problem). So my
first inclination is to punt..."I don't think I
can make that value, maybe you need to
find another appraiser." Realtors actually
appreciate this and go to your local number
hitter (that's his business plan, it works for him).

Don't ever do an assignment for the money,
it aint worth it. The more you say 'no' the
better you can sleep at night.

elliott
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Buyer is a banker..hm. Sale price is $160,000, list price is $119,000. Loan to value of $120,000 loan at $160,000 sale price is 75%....Hm. Am I paranoid or just used to such things?

Roger
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Roger - paranoid :lol: :lol: :lol: 8O :wink:

OK - here's the deal the way I saw it;

1- is it possible the Realtor undervalued this property :?: maybe
remember I said I've worked this are for about ten years and have not done a similar property in that area/neighborhood.

2 - the property really can't appraise for more than what the "market" will relate, to the best of my knowledge. No support for value-underwriting would kill the deal anyway, it's one of those; show me a Sale-equal or higher to support your value - now Elliot is the time to punt :D

3- Because the agent so "matter of fact" about the other contracts, I called him on them, by stating if you can produce the other "Sales Contracts", I can write a bit about that scenerio, but it will not change the value as derived by the current market.

4 - When & if the deal Close's, it will set a "Market" for the next property in the area, buttttttttttt - until then :?:

Thanks for the input from everyone, tought this would be somethin ya'll can chew on fer a bit :?

Yeh, it's all dem easy jobs we all look forward ta do :lol: :lol: - this one was a cake walk :lol: :lol: :lol: :lol: :lol: :lol:

isnt that what they always tell you :wink:

8)
 

Verne Hebert

Senior Member
Joined
Feb 25, 2002
Professional Status
Certified General Appraiser
State
Montana
Don't make the same mistake Carlsen keeps making.

Request reassignment.

The only element that is not involved that could make it worse is the assignment I am working on today.

Sales transaction from an attorney to an attorney.

Happy Holidays!
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Verne 8O :lol: :lol:

Attorney to Attorney :p YIKES - it's perhaps the only time you'll ever see two of em bein nice to one another, could it possibly be to stall a forclosure action, etc., etc :wink:

8)
 
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