DMZwerg
Senior Member
- Joined
- Mar 25, 2009
- Professional Status
- Certified Residential Appraiser
- State
- Wisconsin
Do you have copies of the building permits from when it was done? (aka, 2 rooms & full bath) Doesn't matter if you had it done or previous owner, there should be building permits.
I ask because if the appraiser believed the 3rd floor rooms were not legal he could have reduced that floor off the matrix and then the "comps" would make more sense.
Normally? no.
The typical time frames you hear are 90 days, 6 months, and 12 months.
The question would be rather HOW the similar house sold in March?
Was it a "For Sale By Owner" or other such transaction or was it listed and sold through a realtor and thus in the standard Multiple Listing Service an appraiser would typically check?
As for "is it too old" some Appraisal Management Companies, banks, etc, may have stipulations about using at least X comps from within the last 90 days under certain conditions. Also, depending on how the local market has reacted between March and June the more comparable property might actually no longer be comparable (if the market took a hard dive).
Are there any other factors that would exclude it from consideration?
Waterfrontage?
Water view?
Different neighborhood?
Distance?
Upkeep?
Quality (brick, stone, etc)?
I have seen stipulations come back where the "suggested comparables" were two of the highest priced comparables to be found and the third was an active listing on the same lake but on an exclusive island (worth close to 2x the subject) so understand if the appraiser comes back with reasons he did not consider it, then they may be valid.
Depends on the market.
In some local markets by me there is no discernible difference between a 3BR, 4BR or 5BR home other than what can been seen in GLA adjustments for square footage. Bathrooms matter but not BRs.
On the other hand there is often a huge difference between 1 BR and 2 BR, and often a slight difference between 2 BR & 3 BR, but that is one of my markets, not yours. In one of my markets no garage is worth as much or more than a 1-car garage but a 2-car garage is worth significantly more then there is diminished return per garage after that. That is one reason to hire competent appraisers, they should know all these things about the local market.
I have seen $5/sf in one urban market and over $120/sf for really upscale semi-rural homes. All markets vary, but remember that the $15/sf GLA in the sales comparison approach should indicate the typical buyer's preference between similarly sized properties in a similar location NOT a cost to build, replace, etc. All markets vary and I can not give you an opinion because I don't know your market and you didn't hire me to do an appraisal.
I agree with at least one thing a different appraiser posted, if you think it is wrong, challenge it. Send the address of the property you think is comparable to your loan agent. Inquire if the bank is doing a review (and give a clear statement of why you think one should be done (aka, the appraiser did not bracket the GLA, seems to have ignored a more similar comparable, did not use 3 closed sales, and did not use any sales/active/pending with even close to similar bedroom count (aka, did not bracket that factor). If the loan agent says they are not pursuing a review you still have the option to do so yourself (or as well as) and try to get a hopefully competent local appraiser to verify or rebut the appraisal you do not agree with.
