Appraisal Complaint Filed on Condo GLA - Your Input, Please.

[Couch Potato]

Joyce, it is not quite clear to me. Did the report contain the appraiser's measured size of 958? I have no problem with using the developer's size for comparison. That is the size that will most often be found in tax records. It makes sense to use that for comparison. However, it would not make sense to use anything other than the measured size in the property description. An explanation of the two values should be included too. That is how I would handle it.

 

[Timothy Wixted]

First of all, he used two developer sales as Comps #1 & #2. That would have been fine if he had four or five comps. But he didn't. That's not good appraisal practice.

If he had used his own measurements, it would not make any difference for the first two comps. But Comp #3 would then be 147 sf larger. Comp #3 sold for $166,000. A reasonable sf adjustment could bring that comp down around $160,000.

And I'll bet a dollar that there were no other outside comps that would have gotten him to the number.

 

[Ben Vukicevich SRA]

Joyce,

Fannie form. Fannie guidelines. Fannie allows the use of the condo plat info in the appraisal.

XI, 204.01: Manually Underwritten Mortgages (06/30/02)

Unless we specify otherwise, we require the following exhibits for any appraisal report that is used for a manually underwritten mortgage:

• A street map that shows the location of the subject property and of all comparables that the appraiser used;

• An exterior building sketch of the improvements that indicates the dimensions. (For a unit in a condominium or cooperative project, the sketch of the unit must indicate interior perimeter unit dimensions rather than exterior building dimensions.) Generally, the appraiser must also include calculations to show how he or she arrived at the estimate for gross living area; however, for a unit in a condominium or cooperative project, the appraiser may rely on the dimensions and estimate for gross living area that are shown on the plat. In such cases, the appraiser does not need to provide a sketch of the unit as long as he or she includes a copy of the plat with the appraisal report. A floor plan sketch that indicates the dimensions is required instead of the exterior building or unit sketch if the floor plan is atypical or functionally obsolete, thus limiting the market appeal for the property in comparison to competitive properties in the neighborhood;

I ran across this problem once when a lawyer was holding up a closing stating that either the builder or I had made a mistake in measuring a condo unit. He wanted to know where 120s/f of GLA went and wanted to sue. The builder reported gross area. I reported net area from the inside walls. The walls were .8' thick. There were over 150 l/f of walls. Fannie guidelines rule. LOL. I quoted them. The lawyer went away. Lender was happy.

Presently, I no longer measure new condos. I quote the GLA from the builder's website or from the public offering statement and I copy them into the report. If the architect doesn't know what he's doing, oh well. He's the professional "measurer."

I also just had one in Pennsylvania where the owner complained to the lender that I was 700s/f off measuring his townhouse. Unfortunately, the county assessor adds the finished basement area to his published GLA's and confuses property owners. Once again, I cited Fannie guidelines about above grade areas only and the disgruntled owner went away. I also stated that the assessor has his method of measuring for his comparison purposes and I have mine. Lender was happy.

Chris H.

Nice to see some one else using my disclaimer. LOL.

 

[Webbed Feet]

<snip>3-It is what it is. If the GLA is right, there should be no issue anyway. Further, the appraiser was not able to communicate directly with the client any of the appraisal product until the client released him or her to do so, due to having a fiduciary relationship with the lender/client, not the borrower/purchaser in the transaction. this part:<snip>[/qoute]

Mr. Padrick,

There is NO "fiduciary" relationship involved between appraisers and their clients.

 

[Timothy Wixted]

"Fannie form. Fannie guidelines. Fannie allows the use of the condo plat info in the appraisal.

however, for a unit in a condominium or cooperative project, the appraiser may rely on the dimensions and estimate for gross living area that are shown on the plat. In such cases, the appraiser does not need to provide a sketch of the unit as long as he or she includes a copy of the plat with the appraisal report."

Except in this case, there was no recorded plat.

 

[Chris Harrison]

Ben V.

Chris H.

Nice to see some one else using my disclaimer. LOL.

Plagiarism? Naa.......

Mimicking the master

 

[David S. Roberson]

Why, oh, why, if the appraiser measured the unit and calculated the GLA, did the appraiser THEN communicate the erroneous GLA?

Why indeed?

Yeah, I think that what the appraiser elected to do is a problem.

Misleading? Yes.

Sorry, but I have to agree with Lee. Measure and then use different data for GLA? I believe he screwed up.

 

[jdbiggers]

He used the Developers GLA knowlng it was inaccurate?

That is misleading in and of itself.

If the developer is misleading the GLA of the comparable sales, list their stated GLA, the subject's TRUE GLA per ANSI measuring guidelines, and comments as to why GLA adjustments are not warranted.

It is NOT uncommon for a developer to misrepresent the GLA of ANY type of structure. The Assessor's here quite often take whatever the developer tells them, even if it is hundreds of SqFt off.

But, I still think it would have been MORE appropriate and less misleading to lest the TRUE GLA of te subject since it is known, state that the others were the same model and their GLA is miscalculated, thereby requireing no adjustments, AND making an adjustment for the 1,105 SqFt unit oustide the project UNLESS it is known for a fact that this GLA is not accurate, as well.

I think the best thing to do in this is maybe plead that a slight error of ommission was made in that (assuming the developer's GLA was used for the subject) a comment regarding the actual nature of the improvements was forgotten to be included and hope they see it as a "typographical" error.

Personally, I don't even like rounders...those who measure 11.6 feet and call it 12: if you KNOW it is 11.6, that is NOT 12!!!!! But INTENTIONALLY using data you KNOW to be incorrect by the degree stated (that's more than 10%)?????

JD

 

[Elliott]

This all seems silly. No square foot of space was gained
or lost. No one was agrieved. The unit size is the unit
size.

Condos aren't single family. The "correct" way to compute
SF for a condo is inside unfinished walls to inside unfinished
walls. But having said that, developers typically will include
balconys and common walls. Its common for condo units
to have three or four or more GLAs...the realtor one, the assessor
one, the developer one, the inside measure, the common
wall measure, and the outside wall measure.

Seems to me the appraiser's job is to be consistent.

 

[Carnivore]

Condos aren't single family. The "correct" way to compute
SF for a condo is inside unfinished walls to inside unfinished
walls.

Its common for condo units
to have three or four or more GLAs...the realtor one, the assessor
one, the developer one, the inside measure, the common
wall measure, and the outside wall measure.

Seems to me the appraiser's job is to be consistent.

Elliot,

Essentially you are correct. Consistency in use and reporting is whats important.

There are exceptions to the inside wall measureing. I have exampls of deeds for diffferent areas of condo ownership. Some included the rafters, some included half the wall thickness. Some included(not as GLA) the concrete pad for the HP compressor section outside the unit.