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Another "paired" appraisal allegation, Seattle

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3541 S Bennett Street

3536 S Bennett Street

3526 S Bennett Street

3540 S Bennett Street

3537 S Bennett Street


Condition varies but they are all same size homes on the main level. 3541 is the only one that has a upper level although with low ceiling. 3536 and 3526 have full and finished basements. 3541, 3540, and 3537 have partial unfinished basements.
 
Elliott said:
Peter's methodology is a start, but I don't know what happened to having a good, full review appraiser look at two appraisals and decide what was going on, rather than a sensational 'bias' story done by the media.

I wonder why Freddie doesn't do a study about 'number hitters' which would seem to be more important to the integrity of appraisers and their risk.
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There are tons of studies on numbers hitters 90% hit the purchase contract price and always have. In fact those are the majority who survive long term in Loan Production. BUT you will never get one to admit it.
 
Based on the below I think it's safe to assume there were more than 2 appraisals of this property over the past year.

Per the video, an appraisal cover letter with the lender redacted shows an effective date on Nov 1, 2021
Per County Records, Sound Credit Union recorded a HELOC totaling $54,800 in Dec 21
Per the video, the low appraisal supposedly occurred in April and the lender was Cross Country Mortgage
Per the video, the high appraisal supposedly occurred weeks later (approx June based on a pending sale) and the lender was Mortgage Solutions Financial
Per King County Records, Seattle Metro Credit Union recorded a HELOC totaling $300,000 in September 22

The facts of the situation and comp selection don't even matter because the source of the information has been shown to be deceptive. The high appraisal could have been "subject to" for all we know. The low appraisal could have been "as is" when the kitchen was all torn up. One has to wonder how many UCDP submissions there were for this property since Nov 21.
 
I don't really care about the news.

But it sounds like you are probably right that it is a made up story with multiple appraisals involved. Just another fake news.
 
But that's the source... unlike the others which have legal complaints.
 
CGinMN said:
But that's the source... unlike the others which have legal complaints.
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I'm more interested in the comp selection discussion than the bias discussion the news.

I don't understand why some would consider the the low budget flip super ugly house and a house fronting a six lane street to be better comps than four similar style homes on the same lots on the same street but with varying condition.
 
A K said:
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You can't ignore these properties. You can add other comps if you want but can't ignore these.
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04/2022 appraisal (not mid-2021), C4, 1ba, no offstreet parking or access.

Nobody said anything about ignoring the mid-2021 sales. They're obviously part of the analysis but they're not current to a 03/2022 or 04/2022 appraisal.

Condition OBVIOUSLY isn't a trivial factor in these sales, so blowing past the remodels of the 3 as if they're insignificant isn't happening. They shouldn't even appear in any appraisal of a c4 subject. That's an immediate red flag in any review situation, especially when there are ample sales of more similar condition.

If I spend $150k on a major remodel including a new roof, all new windows/doors and a real kitchen/bath remodel then the adjustment between that and the beater is *at least* $250k, not $150k. I'm not doing a remodel/flip and taking my chances with contingencies for free.
So for an "as is"....
"Most similar" means only the last sale (3537) is directly comparable in terms of size/condition, except it does have offstreet parking which already makes it superior. Not to mention irreconcilable with 3526 AND 3536 in the same analysis.

That means including the dated 3537 along with 4-5 other more recent comps in that size range at C4, preferably including some with no offstreet parking of any kind. That DOESN'T mean backing into a value based primarily on major remodels w/offstreet parking + 3537 w/garage.

Here's the question: Do you really think the buyer for this house would limit their "substitutes" to this block? Because the $705k sale in 10/2022 is also located on this block.
 
two four six eight who do you appreciate AMC AMC AMC

:rof:
:rof: :rof:
 
  • Haha
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4222 34th Ave S - 3bd/2.5ba, 1860sf, 1-car garage @ paved alley - $645k - 12/2021
https://www.redfin.com/WA/Seattle/4222-34th-Ave-S-98118/home/172084


4231 46th Ave S - 3bd./2ba, 1400sf, Similar overall condition, terraced lot - no onsite parking - $622k
https://www.redfin.com/WA/Seattle/4231-46th-Ave-S-98118/home/488168 03/2022


4710 S Orca St - 3bd/1ba, 1340sf, superior condition, unfinished basement, open parking at the rear
https://www.redfin.com/WA/Seattle/4710-S-Orcas-St-98118/home/492918 - $673k. 11/2021

5129 S Findlay St - 3bd/1ba 1480sf, similar condition, open parking, unfin basement; $655k in 04/05/2022\

4240 S Findlay St - 3bd/2ba, 1720sf (incl finished basement) , superior condition, no onsite parking - $725k in 11/2021
Zillow.com

5503 35th Ave S; 3bd/3ba, 1310sf, superior condition, corner lot with ample access for offstreet parking

5022 32nd Ave S; 3bd/1ba, 1480sf superior condition with 2-car garage and driveway; $757k in 04/2022


4419 49th St; 3bd/1ba. 1200sf on 3800sf lot, inferior condition, no onsite parking or access; listed for $525k on 05/05/2022 so it wouldn't show in an appraisal but it can be related to the subject's actual value as of 04/2022. Add for lot area, GLA and the interior condition.


And I love this one because it indicates to the land values:

4832 S Graham St; 4bd/3ba 1480sf, similar if not a little superior in condition, driveway. Listed for $650k in 02/2022, but sold for (wait for it) $925k in 03/2022. EXCEPT that sale also includes the adjacent vacant lot of at least 6000 sf. So that right there indicates to the lot value of $350k for 6,000sf.

There's more, but I won't bore you with them. The point is that the subject's condition and lack of parking/access can be matched or bracketed in this area without the use of the big remodels. And that range of unadjusted pricing doesn't come anywhere close to implying the original $670k value was grossly out of line for a C4, 1ba, no offstreet parking, needs new-roof-soon property.

Nor is there any call for relying primarily on 2021 sales in this appraisal, either.
 
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just hit the number or they can waive the appraisal :rof:
:rof: :rof:
 
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