Appraisal Bias

[Fernando]

That was a dumb thing for you to say. Did you look at the details of that transaction? I did. That's why I know and you don't.

The comps are out there and the public will ask why you didn't considered the higher comps.
Unlike you, I look at all the comps which a knowledgeable appraiser would consider even if outside neighborhood for such a difficult assignment.

 

[Fernando]

Just stop making a fool of yourself you never read the case you never have any idea what is going on

I didn't read the case but I did see the comps and I normally would pass or charge a high fee because comp prices vary so much.
Something in market explains for the price variations and appraiser needs to find out why.

 

[George Hatch]

The comps are out there and the public will ask why you didn't considered the higher comps.
Unlike you, I look at all the comps which a knowledgeable appraiser would consider even if outside neighborhood for such a difficult assignment.

If you had actually looked the way I did ( which you obviously didn't) then you'd know that the current ownership of that property has been onsite since at least 1998. There doesn't appear to be an MLS listing for the property either. I can't believe you missed that fact.

Then again, I guess I shouldn't say that.

 

[Fernando]

If you had actually looked the way I did ( which you obviously didn't) then you'd know that the current ownership of that property has been onsite since at least 1998. There doesn't appear to be an MLS listing for the property either. I can't believe you missed that fact.

Then again, I guess I shouldn't say that.

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I think there was another comp that sold near subject back in July of last year with high value.
I would think a local appraiser (Miller) would be more familiar with the area and have "more accurate" value. Or an outside appraiser be more objective in viewing the area.

 

[George Hatch]

Even if there was one (which you're wrong about that, there isn't one) a sale in July of 2022 would require a significant downward adjustment for market conditions when compared to a 01/2020 value. But hey, you know which post-2020 sale can be considered a little more indicative of what the subject's value was as of 01/2020? This one:

Sure, this sale closed 17 months later in an increasing market and is all of 130sf smaller than is reported for the subject, but who's counting?

 

[Fernando]

Even if there was one (which you're wrong about that, there isn't one) a sale in July of 2022 would require a significant downward adjustment for market conditions when compared to a 01/2020 value. But hey, you know which post 2020 sale can be considered indicative of what the subject's value was as of 01/2020? This one:

Sure, this sale closed 17 months later in an increasing market and is all of 130sf smaller than is reported for the subject, but who's counting?

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Back then in 2020, prices vary a lot. Even now prices vary a lot.
When I do an appraisal, I gather many comps. I try not to have a predetermined value.
Only after I go and see the property outside and inside do I know what comps I'm looking for.
Until you go and see the property, you can't really make comments on the appraisal.

 

[George Hatch]

Everything that you're describing above is the bare minimum for appraisers. So while I applaud you for doing what you're supposed to be doing you're still wrong if you think there are any sales in that neighborhood that supported a $1.5M value. Then or now.

And FTR, I'm referring to the value conclusions which are reported in the news, not on the entirety of the workproducts that I haven't seen. There's a difference.

 

[Fernando]

Everything that you're describing above is the bare minimum for appraisers. So while I applaud you for doing what you're supposed to be doing you're still wrong if you think there are any sales in that neighborhood that supported a $1.5M value. Then or now.

And FTR, I'm referring to the value conclusions which are reported in the news, not on the entirety of the workproducts that I haven't seen. There's a difference.

If you go into Zillow, the estimated value is $1,417,500. That's what the public sees. Appraiser needs to figure out why the AVM has it near $1.5M.

 

[George Hatch]

OMG. This should go without saying in a forum of professional appraisers but you seem to be making a strong case for the necessity of drawing the picture in crayon so it can't be misinterpreted.

A - If a neighborhood composition is varied (like this one) and is yielding only 1-2 comparable sales a year then that quantity/comparability of the data will never lead to a reliable AVM output. As far as straight statistical analyses goes we don't even start getting into statistically meaningful datasets with less than 30 datapoints.

B - Even if an AVM did work here, the effective date of the appraisal in question was 2020, not 06/2023. So a $1,417,500 AVM outcome (which still isn't $1.5M) in 2023 cannot be considered proof that the 2020 value of $1.5M was reasonable. That's not me fixating on trivia, either. It's just common sense. Or should be, anyway.

You should give up. You obviously don't have what it takes to defend your opinions on this one.

 

[Zoe]

I don't know what that view would have been valued at. It would have taken me a long time to analyze that based on different factors. I could have analyzed cost they spent on it and what their motivations were for spending a ton of money at that site. That view would have been hard to analyze and would have likely took a while to complete the appraisal.

To be point blank, I would have read the owner's motivations to start and their expenditures on the site. That would have only been my starting point. My inspection and reading motivations is the easy part.