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AMC's & ERC's Venting

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Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Completed a ERC report a few weeks ago for an AMC. I have been doing ERC's for quite some time.

This is the first one I have done for an AMC.

Stips are coming back now.

The other two appraisers used comparable xxxx and yyyy why didn't you?

1. The comparable xxxx is in a different market 60 miles SW, large college town, Interstate access to Debuke, Ia and Masion, WI Population base is better then double. Mean income is $15,000 a year higher.

Comparable yyyy is on acreage 6+ (subject is on .50 ac in rural subdivision, has bluff views of the Mississippi and on water, is 1/3 larger then the subject for ABG space.

2. The other appraiser say that the comparable you used in the same subdivison, is lesser quality for construction. Sorry, it has the same GLA +/- a few sq, ft, they say it is 2100 GLA you say it is 2200 GLA subject is 2180 GLA. Realtor and Builder says it is the quality as the subject and the builder built both.

3. The other two appraiser say there are crubs and street lights, you report says there are not. Response look at the driveway pictures of the subject, look at the street pictures of the subject, look at the main road pictures coming into the subdivison that the other street branch off of. I don't see any crubs or gutters.

I talk with them today and they said they didn't think the ERC would use my appraisal because it was 75K +/- below the other two.

I ask if they have read all my support about wages in the area, location of subject, distance to population centers, mean income in the area, past sales in the area. Stats showing only one home for $350K had some in the past 8 months. That the mean was $115K, that the subject has already been on the market for 90 days with no lookers and you wanted a selling price with in 120 days. That we still have three months of winter yet in the area. that the two largest employers in the area are showing a slump in sales. One being a modular home builder. Was any of my research consider that I did. Or are we still looking at the higher value as oposed to projecting a realistic selling price in 120 days. I am sorry the man is going to take a $100,000 hit in less then two years. But I feel that is what the market is in rural Wisconsin, when the town can only be access by two lane state roads, county trunks, there is no strong job base and the mean homes selling in the area is 115K. This subject is pricing on the high end is someone who retires to the area. Has a large amount of cash to invest in a home. Has a pay check that is not based on the area. Such as a sales rep or goverment employee.

Is skippie slilping into the ERC Market now.
 

Tudor

Member
Joined
Aug 15, 2006
Professional Status
Certified Residential Appraiser
State
Arizona
Ray,

That is too funny, you show them 4 different times (I counted each comparable) why their 2 other appraisers are wrong and then they still want to believe their values and not yours.

Should'nt the AMC just send off the reports and quit worrying about whether the reports will be accepted or not?
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
Why oh Why?

Would the ERC market want to get involved with AMC's???????????????????

I just sent in my 360 clams. NO refunds.

AMC's don't hesitate to call me for your ERC needs. And I won't hesitate to say no.

One of the last places left that seemed to really want to know what it is worth, just partnered up with one of the last places you would go to find out...

Crimany.
 
Last edited:

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
I forgot to add, that there are 7 $300K homes that have been on the market for 10 months and fast approaching a year. Even 199K homes are on the market now for over 200 days.

My 229K to 240K comps were on the market from 243 to 315 days.


And they want this sale in 120 days at $349K or thats what the owner told me he expected to get for it.
 

Jill Kinnaird

Junior Member
Joined
Oct 6, 2005
Professional Status
Certified General Appraiser
State
Ohio
Relo Companies have been taking quite a hit around here. Especially upper eschelon dwellings. Researching some of these sales is kinda of heartbreaking: Bought New at $2 mill, relo buys back at $1.5 mill, sells 3 years later for $800,000; you get the picture. Requests for additional data and analysis, over and above the 'typical' 'old time' pre 2006 reports, are now standard. Some Relo Co's have requested very specific data be added to every report which, of course, takes more time. More time equals a higher fee. Higher Fees + Losses = Let's try an AMC. Ever tried to explain Market Value vs. Anticipated Sale Price to a transferee? How about forecasting? Wonder if the AMC phone monkeys know the difference? When the AMC using Relo Co's get their first reports, or rather when their transferees get the reports, I have no doubt they will revert back to paying, and appreciating, a true professional.
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
Jill,

The relo company isn't making the request. It is the GoFSDDDmmed AMC.

I understand everybody wants this additional info. Perhaps they should start ordering self contained reports if they don't want our summary.


Edited to add:

Of course, skippy would have no idea how to put one of those together, or how little to charge for it:angry:
 

Ted Martin

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Kansas
Don't sweat it Ray, when the chickens come home to roost on this one in 120 days your star will shine.
 

The Dog

Senior Member
Joined
Apr 18, 2005
Professional Status
Certified General Appraiser
State
Oregon
Some times you just have to say WTF

I did a relo in 01/07, 5,000 sqft on 20+ acres, very rural and very private with limited market interest. Property was listed for $,1450,000 for 347 days at the time of my appraisal. I appraised it at $850,000+. Relo comp. went ballistic and said other appraiser were at $1,200,000 to $1,500,000.

Well it is now 2008, property was re-listed 06/2007 for $1,000,000 for 173 days and then reduced to $930,000. Still no interest. Interestingly, the first listing does not show up on total days on market. Realtor listed without reference to 1st listing time.


By now, the market has taken probably another 15-20% dump since the time of appraisal and the relo comp. is sitting on the property.


If they had reduced the property in 01/2007, would have sold by now. But it is not my money. It is their money. They paid me and they can ignore the appraisal if they want to, I really don't care.

Sometimes, it is best to say WHO CARES, YOU OWN THE REPORT, DO WITH IT WHAT YOU WANT.
 
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