Appraisal Report Revision

[Deleted member 134708]

We are human. Things happen. We miss things. No big deal. Add sales, re-do report to the extent you see fit to make credible. Done.

OP don't lose sleep over it. You're human.

Only insane people do not correct their mistakes, but keep making them.

 

[Ariba]

What makes these comps better? And the other question would be how come you did not find them?

I would not remove the comps you have. If you feel these comps should be added, put them in as additional comp sales. If your value changes...how are you going to deal with that?

The subject is a condo and was listed at $250,000, My search parameter included a price of less than $300,000. The highest any condo sold in this building was $170,000 and that was the subject on 03/20/2017. This is a 1-bed, 1-bath, 600 SqFt fix-n-flip condominium. No other sales in the building previous 3-years. To complicate the matter, occupancy more than 50% tenants and 1-owner owes more than 10%. Comparables provided are $310,000 and above.. It appears the only difference is tenant occupancy and 1-owner owning more than 10% . The question is why would they list the property at $250,000 and now provide comparables at $310+

 

[Ariba]

Note I did support his using the new sales as well as changing the value if warranted...was trying to preserve a safety net for him how to handle it...esp with first part, he may want to call his client and ask if they have any protocol.

Great suggestion. Thanks

 

[BarrySW1963]

The subject is a condo and was listed at $250,000, My search parameter included a price of less than $300,000. ....

Don't use price in search parameters.

Add the new comps to the end of the grid, don't remove the originals. New maps. Analyze. Adjust value if necessary. Disclose, disclose, disclose.

 

[J Grant]

The subject is a condo and was listed at $250,000, My search parameter included a price of less than $300,000. The highest any condo sold in this building was $170,000 and that was the subject on 03/20/2017. This is a 1-bed, 1-bath, 600 SqFt fix-n-flip condominium. No other sales in the building previous 3-years. To complicate the matter, occupancy more than 50% tenants and 1-owner owes more than 10%. Comparables provided are $310,000 and above.. It appears the only difference is tenant occupancy and 1-owner owning more than 10% . The question is why would they list the property at $250,000 and now provide comparables at $310+

I don't know what to say. Your subject was listed at 250k and sold at 170k? And re agent is sending you comps that sold over 310k?? is that correct re subject sale price ) ??Again, what is superior about these sales (other than price )supplied by the RE agent then the comps you selected and used?

How similar in quality and appeal are your comps compared to the subject building, unit, and location , vs these from the RE agent? Just because a sale occurred does not make it a comp.

. While price is not supposed to be "the" search, and we should do a least one search not focused on price, price is a major component of why buyers select certain properties and not others and typically homes and condos that sell a great deal higher than others there is good reason for it, and after a certain threshold they are not comps for each other because they do not appeal to the same typically motivated buyer. .

 

[J Grant]

The question is why would they list the property at $250,000 and now provide comparables at $310+

They provided you with sales to hit a high value. They may or may not be comps. How much experience do you have in the condo market in that area ? Sorry to be blunt but this is alarming to me

 

[Ariba]

The question is why would they list the property at $250,000 and now provide comparables at $310+

They provided you with sales to hit a high value. They may or may not be comps. How much experience do you have in the condo market in that area ? Sorry to be blunt but this is alarming to me

This was a fix-n-flip, bought for $170,000 on 03/20/2017, subsequently fixed, listed at $250,000, and under contract for $265,000. Basically, an one month flip and a $95,000 increase on a 600 SqFt Condo? Obviously the subject was used as one of the comp's since it only sold one month ago. The market in Denver is ridiculous.

 

[J Grant]

ok makes more sense

 

[Peter LeQuire]

I don't object to incorporating into an appraisal I've submitted information I previously overlooked or dismissed as irrelevant. I also think that if a client asks me for revisions or to use additional data from whatever source, I am at liberty to revise/correct/amplify/better explain anything between the file number on the front page and my signature (just as I am at liberty to contact a client on my own initiative if I discover an error after submitting an appraisal). I don't know that I've ever done an appraisal that I couldn't make better.

I think that an appraiser sets herself up for criticism if she is immune to receiving new, better information and processing it appropriately. (And courteously, and professionally.)

 

[J Grant]

Sure we should add data if and when it is appropriate...but except for a higher price, the OP has not identified what is "superior" or Better about these sales then the comps he already has, and why except for price they are even comps. Of course these internet discussions no matter which position we take are about assumptions since none of us saw the subject, or the comps etc...but still some things are relevant as appraisal principles ( and problems) apply across markets.

The sales submitted by agent sold at 310k /higher, his subject sale price 265k a former flip that a mere month ago sold for 170k k in an investor heavy building over 50% rentals.

We analyze new sales submitted to us to see if WE think they qualify as comps, they do come from a RE agent trying to get a value up.