Appraisal Report Revision

[Tim The Enchanter]

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.

Did they get a steal at $170k? Gold plate the entire interior? That's a huge change.

 

[Tom Woolford]

I would make sure that they truly are better comps. Closely examine the MLS commentary, photo's and permit info. A new roof and new HVAC will make a major difference if the subject doesn't have one. Pictures alone can make a better comp into a superior comp.

 

[Noreen]

The underwriters here would want substantial background information on a "$95,000" difference in two months... here, that dog would not hunt, so to speak!

 

[J Grant]

So much about condo values depend on the building...the amenities, how it is managed , the financials etc. The subject building per OP has over 50% rentals and over 10% of units owned by one party. That disqualifies it for financing with many lenders. If the comps in the 310k range are in a superior building where financing is easy to get...well...are they comps? If a buyer for a one bedroom condo in area has over 300k to spend, why would they buy in the subject building?

 

[Tim The Enchanter]

The underwriters here would want substantial background information on a "$95,000" difference in two months...

This could certainly happen. But in this price range? With a 600 SF condo? Smells fishy.

 

[Ariba]

Thanks for all the constructive/positive comments. Drove by the comparables provided by the client/lender today and they were found to be superior to the subject. Problem solved.

 

[jay trotta]

In order to review (the new comps) and analyze that data, you did specify/clarify the additional cost for each unit researched, as FNMA allows ?

Always interesting when qualifying; a "Comp or Sale" after delivery (the initial finished product date).

 

[J Grant]

Thank you for updating us Ariba with the result ! What a surprise, an agent submitting very superior sales to get a value up! But you did you due diligence and drove by them so now you can respond. Cheers!

 

[Terrel L. Shields]

How did you miss 'em in the first place?

 

[Evincere]

How did you miss 'em in the first place?

I suspect - he didn't think they were good comps from the get go but became rife with doubt when the sharks started attacking the cage. Every now and then when doing residential one has to load their spear gun.