• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Afternoon stips.

Status
Not open for further replies.

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
NEEDED TO PASS REVIEW:

Comment on why predominant value in one unit housing varies by more than 25% of appraised value.


Noted in report about it being a rural area and acreages play a major roll in the value. That the single family housing varies by more than 25% because of the nature of the area being second and recreational homes. These large homes are built by owners from the Chicago and Milwaukee areas for recreational homes. These homes often exceed the norm for the area and range up to 4000 GLA and on acreages from 10 to 160 acres or more. They are not used in commercial farming operations, but are second homes used for recreation. There are some of the homes owned by business owners in the area that have local business in the Wisconsin Dells Recreational area or they commute to Madison, Wisconsin which is an hour and a half away. These business owners and commuters are in upper management and there income supports such a property. The other large homes and acreages are built by people retiring to this recreational area.

The subject property is on a large acreage and has a large GLA for the area. It is owned by a couple that built the home as a retirement home.

Comp range exceeds 25% of lender guideline; please add/delete comp to tighten range or comment.

No other sales with less percentage again acreage. Noted in report.
Noted in report about it being a rural area and acreages play a major roll in the value. Only one comparable exceeds the net by 5%

Net adjustment Exceeds 15%/Gross adjustments exceeds 25%. I made a through search of the market for comparable sales that were very similar to the subject. Because the subject is located in a very rural area on acreage, the sales volume is relatively low. The three sales and one listing cited above represent the most recent similar properties to the subject with a reasonable proximity and/or a similar market. In order to find sales with smaller net/gross adjustments it would be necessary to expand our search to include distant properties east, north south and west or sales that occurred more than two years in the past. The adjustments that were applied were still reasonable and not excessive for this market. Therefore the three sales and listing cited above are the best possible indicators for the subject available at this time. The large adjustment due to the GLA. Yet other features are in line with the subject.

In the neighborhood section, slow, declining, over supply and over
6 months is marked. Pls comment.


It is noted with inventory figure figures from last year and this year, CMA from last year and this year, and spread sheets showing the DOM as well as the DOM of the homes listed in the grid.

GLA of comp 1 exceeds 25% of the GLA of the sub, pls comment.


Noted in the report. It was the best of a very limited number of sales. And I am still 35 miles away from the subject.

In the reconciliation section, pls check 'as is' and uncheck
'subject'. lender requires reports completed "as is".


Can't subject to: is a completed survey and correction in the public records as noted in the appraisal report in several places.

Outbuilding listed in grid but not in improvements section, revise to agree.


It is noted in the additional features and a picture of it in the report.

From the questions it appears that part of the report is missing from the upload or they did not read the appraisal.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
Ray,

They don't read the appraisal, the place it next to their handy dandy checklist and make you the appraiser reiterate what you already have in the report a second or third time. Their job isn't to read but to make sure it fits their specific guidelines....
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
Mr. Miller,

The stips pretty much are just asking for comments. The one about changing to "as is"... I cannot understand your response here on the forum. How can anyone understand it on the lending end?

Webbed.
 

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Mr. Miller,

The stips pretty much are just asking for comments. The one about changing to "as is"... I cannot understand your response here on the forum. How can anyone understand it on the lending end?

Webbed.


Sorry about that Webbed. I didn't type in my entire answers that I put in the report. I gave then a very detailed answer. It is the one I had the question on the survey the other day. that I had three different sizes for the acreage. So I scan in all the different doc from the township and county showing the different size acreage. Told then it was up to them to call for a survey that my appraisal was based on the smallest acreage shown and the number that accured the most in the docs. that if that number of acres proved incorrect it would alter the value of the subject property. then I check box four.
 
Joined
Jun 3, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
Ray --

It looks like the reviewer is asking the questions prompted by the check boxes and excess percentages -- you addressed these issues the first time around, but the reviewer didn't notice your comments.

Is that close to the mark?

When I write a report, anytime there is a comment on an excess percentage, or a wide range of values, or ANYTHING that might trip a reviewer red flag -- I write an ALL CAP headline for the comment that addresses the red flag issue. Examples:

COMMENT ON THE SUBJECT PROPERTY COST APPROACH SITE VALUE EXCEEDING 30%

Due to the scarcity of building sites and the high demand for custom homes in this area, home builders have paid from $600,000 up to $2,000,000 for building sites. The $800,000 cost approach estimate of land value for the subject property is at the lower end of the range of value a developer would pay for this site.

Nominal adjustments were made for comparable site areas, based on the relative market appeal of the respective sites. Substantially larger sites have a higher market value than sites that are only slightly larger.

COMMENT ON AGE AND CONDITION ADJUSTMENTS

The subject and all comparables are older homes in central Denver. All have been updated to varying degrees; for the purpose of this report, all age and design related differences in market appeal are considered as condition adjustments.

COMMENT ON THE RANGE OF RECONCILED VALUES

The high demand for custom homes in the Country Club neighborhood and relatively small pool of potential buyers leads to a wide range of values for homes in this sub area; comps 7 and 8 are included as indicators of the high end of the range of values; comps 1 thru 6 were deemed to be the most representative of the subject property's value and market appeal.

COMMENT ON LINE/NET/GROSS ADJUSTMENTS, AND THE WIDE RANGE OF RECONCILED VALUES

Due to the scarcity of comparables sales in the subject property's sub area, the comps selected have a wide range of value and adjustments to reconcile them to the subject property. The search area was expanded to xx months and xx miles; the appraiser attempted to meet lender guidelines for line net gross adjustments and reconciled values, but due to the lack of suitable comparables within a similar market, was unable to do so. The comps used in this report were deemed to be the best and most comparable available at this time.

These are lifted from several reports -- the key is to address the issue, and make sure the headline guides the reviewer to the appropriate comment.
 

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Ray --

It looks like the reviewer is asking the questions prompted by the check boxes and excess percentages -- you addressed these issues the first time around, but the reviewer didn't notice your comments.

Is that close to the mark?

When I write a report, anytime there is a comment on an excess percentage, or a wide range of values, or ANYTHING that might trip a reviewer red flag -- I write an ALL CAP headline for the comment that addresses the red flag issue. Examples:



These are lifted from several reports -- the key is to address the issue, and make sure the headline guides the reviewer to the appropriate comment.


that is correct. The report is if I remember correctly with out looking 37 pages long.

But I will give the cap thing a shot never thought about using them. I do use * , ** and soforth so the know to look for the right number.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks