Appraiser Didn't Use More Recent Comp Favoring A Much Older Lower Sale

[imcadams]

I'm posting this to see if anyone is kind enough to review my situation and provide professional feedback and opinion on this matter. I'm selling my home and the buyer's appraisal from the bank came in $5k below the sale price. The sale price is $139,900 and the appraisal came in at $135k. The four most recent sales in my neighborhood, in which all the homes are comparable, were:

1) 2/5/16 $132,500 at 1258 sq ft
2) 2/5/16 $139,900 at 1443 sq ft
3) 12/11/15 $139,000 at 1470 sq ft
4) 12/10/15 $125,000 at 1270 sq ft

My home is 1416 sq ft. The appraiser used comps 1, 2, and 4. Also, there's another comp pending sale closing next week at $139k. When we notified the estimator of the 3rd comp, which should increase our appraisal considerably, he replied saying he was unwilling to adjust the value of the home. He said he looked at the comp we provided and while it was a good comp -- it would not adjust his opinion of value since he would adjust out for the garage and other items in the house that he felt were superior like granite, etc.

My home doesn't have a garage to offset the garage, but all of the other comps had a garage(s) anyway so I think that our estimate would still go up. As far as the granite is concerned, our home has other upgrades that could offset that as well.

Does this seem reasonable? It seems to me like his appraiser is trying to give us the bare minimum and going out of his way to do so.

Thank you to whoever reviews this information, I really appreciate it.

 

[bnmappraisal]

I don't know your market/neighborhood and don't pretend to ... that being said, I am not providing an opinion of value nor doing any sort of formal appraisal review of your situation. It's nearly impossible for any of us to give you an opinion without having to do a full blown review of the original report.

Looking at your comment/question strictly as a straight forward text book type case/example, $135k, based on the sales you provide, seems very reasonable. I'm also assuming the sale prices you state for the 4 sales are the actual sale prices and not the adjusted sale price range. Either way, $135k seems reasonable. Again, I'm not saying, by any means, that the value is correct, but it seems reasonable based on the information you provide.
All the best

 

[Mark K]

Taking strictly what's shown in your post...

You say you don't have a garage and all the comps do....and your appraisal came in at $135K. If I was doing the appraisal I think I'd have a difficult time supporting a $135K value for a home w/out a garage. When I do a quick mental adjustments for garages and size, I think $135K is probably very fair.

There's no way a house w/out a garage in my area would appraise for $135K given only the above info. People like and are willing to pay for garages.

Around here, in that price range, a garage is worth about $5K for 1 car and $8K-$10K for 2-car, compared to a house w/out. But we get snow and freezing weather so it may just be a locational difference.

Unfortunately, you might have a good appraisal on your hands. Good luck.

 

[JTip]

The provided basic numbers look fine.

Take the money and RUN.

 

[Gobears81]

The four most recent sales in my neighborhood, in which all the homes are comparable, were:

1) 2/5/16 $132,500 at 1258 sq ft
2) 2/5/16 $139,900 at 1443 sq ft
3) 12/11/15 $139,000 at 1470 sq ft
4) 12/10/15 $125,000 at 1270 sq ft

My home is 1416 sq ft. The appraiser used comps 1, 2, and 4. Also, there's another comp pending sale closing next week at $139k.

The title of the thread references a much older sale. If I had comparable sales that recent at my disposal, I'd feel like appraiser of the year

 

[Meandering]

imcadams, said;
I'm posting this to see if anyone is kind enough to review my situation and provide professional feedback and opinion on this matter. I'm selling my home and the buyer's appraisal from the bank came in $5k below the sale price. The sale price is $139,900 and the appraisal came in at $135k. The four most recent sales in my neighborhood, in which all the homes are comparable, were:

1) 2/5/16 $132,500 at 1258 sq ft
2) 2/5/16 $139,900 at 1443 sq ft
3) 12/11/15 $139,000 at 1470 sq ft
4) 12/10/15 $125,000 at 1270 sq ft

My home is 1416 sq ft. The appraiser used comps 1, 2, and 4.

Also, there's another comp pending sale closing next week at $139k. When we notified the estimator of the 3rd comp, which should increase our appraisal considerably, he replied saying he was unwilling to adjust the value of the home. He said he looked at the comp we provided and while it was a good comp -- it would not adjust his opinion of value since he would adjust out for the garage and other items in the house that he felt were superior like granite, etc.

My home doesn't have a garage to offset the garage, but all of the other comps had a garage(s)

anyway so I think that our estimate would still go up.

As far as the granite is concerned, our home has other upgrades that could offset that as well.

Does this seem reasonable? It seems to me like his appraiser is trying to give us the bare minimum and going out of his way to do so.

1st. Who/what is the "estimator" is this person a licensed appraiser?

2nd. You're home does not have a garage, or granite countertops, while the comps do, but you still think the value should be higher than the comps?
Thanks, I needed that.


3rd. Did you investigate the 3rd sale to see why it isn't being used, like maybe favorable financing or a transfer between relatives? Perhaps it has an in ground pool or some other superior amenity your property does not have.

4th. You need to speak to the buyer's agent.

.

 

[Mr Rex]

Take the money and run. You have no garage but are complaining about value? Are you certified mentally challenged?

 

[Tom D]

I don't know your market/neighborhood and don't pretend to ... that being said, I am not providing an opinion of value nor doing any sort of formal appraisal review of your situation. It's nearly impossible for any of us to give you an opinion without having to do a full blown review of the original report. . Either way, $135k seems reasonable. Again, I'm not saying, by any means, that the value is correct, but it seems reasonable based on the information you provide.
All the best

you state you are not providing "an opinion", but you write "$135k seems reasonable". you just stated an opinion of value, that is an appraisal, that is why we are not allowed to do comp checks. any number besides the actual range of the neighborhood sales is considered an appraisal. i forgot which USPAP year book it has that in the advisory opinion section. i'm an expert at this comp check "theory" definition. you're excellent in your normal comments, this is a brain freeze. this is how dangerous & stupid our business has become.

 

[bnmappraisal]

this is how dangerous & stupid our business has become.

too true, my friend. a lapse in judgment I guess

 

[RSW]

you state you are not providing "an opinion", but you write "$135k seems reasonable". you just stated an opinion of value, that is an appraisal, that is why we are not allowed to do comp checks. any number besides the actual range of the neighborhood sales is considered an appraisal. i forgot which USPAP year book it has that in the advisory opinion section. i'm an expert at this comp check "theory" definition. you're excellent in your normal comments, this is a brain freeze. this is how dangerous & stupid our business has become.

Where does it say an appraiser can't do a comp. check? (Not that I do them) A comp. check is an appraisal. They can be done as long as they are in compliance with USPAP.

As for the OP's question? I agree with the orhers that there would be a value difference in my market area for the lack of a garage and possibly granite counter tops.