Another "paired" appraisal allegation, Seattle

[glenn walker]

So after #120 Posts which appraiser was closets the original one or the second one ? Personally I tend to think the original one was on the low side but not because he/she was racists just had no idea what they were doing. At that time that market was crazy hot like ours and bidding wars were bumping up prices at $50K to $100K a pop. Its now probably slowed significantly as mortgage payments have increased so much.

 

[TerryRohrer]

In my view, in this and every similar case, the only fair assessment would have to come from an objective appraiser active in the subject market area, although will a full set of facts, a collective assessment like the above could be meaningful. That seems to be what is being avoided at all costs in each of these cases. I don't wish on anyone life under the strain that Miller has been and will be enduring, but we will all benefit if that case goes to trial and the evidence becomes available to be picked apart. Then we can respond to actual, real facts. In these other cases, we don't even know if either appraisal was completed, much less for whom, or what relationship either might have with the homeowners.

 

[George Hatch]

You should adjust your SF size range because zillow includes finished basement in their SF. The Clarks home is 1,350 SF + probably 1,000 SF finished or unfinished basement. It is a similar size home compared to the one that sold for $1.1 million across the street. It would probably cost around $35k-$50k to finish it if they didn't already.

Basement with cheap $50/sf interior finish. And offstreet parking.

Instead of comparing it to our subject why don't you take a swing at comparing it to the $1.1M sale you think is so relevant?



My point was and is that we need to figure out how these sales relate to each other before we can figure out how they relate to our subject. Why else would we perform a market analysis and how else can we use that market analysis in our valuation process? Because if we're not doing that then the only other way to do it is to pick 3 or 4 sales out of the group and go straight to making adjustments.

 

[Joe Flacco]

Basement with cheap $50/sf interior finish. And offstreet parking.

Instead of comparing it to our subject why don't you take a swing at comparing it to the $1.1M sale you think is so relevant?

View attachment 69899

This house is basically fronting that six lane road. It's not a better comp than those four on the 3500 block of S Bennett. Those four on S Bennett are hands down the same comps. Same lots and similar homes. Only adjustments needed are condition, size, and market conditions. The range is $782k in 2021 for a similar size home in need of updating / renovation to $1.1m in 2022 for a similar size home that is remodeled.

This is how I would look at this appraisal and I wouldn't think twice about it.

 

[George Hatch]

So you're saying the location adjustment is worth $200k? You would actually make a 30% upward adjustment in this price range for location? Seriously?

Because if so that brings us straight back to the $705k sale with the significantly superior quality interior buildout including the kitchen. Speaking of which, how do you reconcile this sale with the $1.1M sale AND the $600k sale? Because however you're doing it you aren't going to end up at an $800k value for our C4/no parking, no basement finish subject. Let alone $920k as is reported for the 2nd appraisal.

 

[Joe Flacco]

So you're saying the location adjustment is worth $200k?

Yeah it could be.

 

[George Hatch]

So what's your reasoning for this one? Because it ain't the location. Unfinished basement + 1 car garage and driveway. The inferior roomcount and the inferior kitchen/bath finishes bear an upward adjustment but you're not getting $200k out of that.

 

[Joe Flacco]

So you're saying the location adjustment is worth $200k? You would actually make a 30% upward adjustment in this price range for location? Seriously?

Because if so that brings us straight back to the $705k sale with the significantly superior quality interior buildout including the kitchen. Speaking of which, how do you reconcile this sale with the $1.1M sale AND the $600k sale? Because however you're doing it you aren't going to end up at an $800k value for our C4/no parking, no basement finish subject. Let alone $920k as is reported for the 2nd appraisal.


View attachment 69902

This house is not superior quality build out and it is super ugly. It is low end home depot. Doesn't even have tiled bathroom it's vinyl. Downstairs has popcorn walls and ceiling with some cheap floors.

If the data shows 30% adjustment then the adjustment is 30%. What do you want me to do about it.

 

[George Hatch]

Remember, our subject is a C4, no offstreet parking or vehicular access to the rear, low quality kitchen update, no basement walkout, windows or finish. That's ground zero for any specific comparisons. Actual comp selection for an appraisal starts from there, nowhere else.

 

[Joe Flacco]

It is impossible to convince me that these sales are not the best indicators of value.

Same location
Same lots
Homes styles with similar apppeal
Range from bad condition to good condition

It is in this range.