Comments For Appraisal Under Contract Price

[JEFFSMA]

APPRAISED A 2 BEDROOM 944 SF RANCH WHICH IS UNDER CONTRACT FOR $355,000 AFTER 5 DOM. LISTING PRICE IS $320,000.
MY VALUE USING 6 COMPS AND STRETCHING AS FAR AS I COULD, CAME IN AT $345,000. NO WAY I COULD SEE $355,000. MLS STATS INDICATED A YTD INCREASE OF 5% WHICH I APPLIED IN ADDITION TO MARKET DERIVED ADJUSTMENTS.
I'M LOOKING FOR COMMENTS TO SATISFY LENDER AND BUYER THAT MY VALUE IS GOOD AND THE SALE PRICE IS TOO HIGH AND NOT JUSTIFIED.
THANKS,
JEFF

 

[Gobears81]

 

[Mike Ault]

APPRAISED A 2 BEDROOM 944 SF RANCH WHICH IS UNDER CONTRACT FOR $355,000 AFTER 5 DOM. LISTING PRICE IS $320,000.
MY VALUE USING 6 COMPS AND STRETCHING AS FAR AS I COULD, CAME IN AT $345,000. NO WAY I COULD SEE $355,000. MLS STATS INDICATED A YTD INCREASE OF 5% WHICH I APPLIED IN ADDITION TO MARKET DERIVED ADJUSTMENTS.
I'M LOOKING FOR COMMENTS TO SATISFY LENDER AND BUYER THAT MY VALUE IS GOOD AND THE SALE PRICE IS TOO HIGH AND NOT JUSTIFIED.
THANKS,
JEFF

Appraiser will be happy to examine and comment on additional sales data (up to three) which the participants in the transaction feel are more representative of the market value of the subject other than the ones employed in the appraisal report.

 

[meatsandbounds]

APPRAISED A 2 BEDROOM 944 SF RANCH WHICH IS UNDER CONTRACT FOR $355,000 AFTER 5 DOM. LISTING PRICE IS $320,000.
MY VALUE USING 6 COMPS AND STRETCHING AS FAR AS I COULD, CAME IN AT $345,000. NO WAY I COULD SEE $355,000. MLS STATS INDICATED A YTD INCREASE OF 5% WHICH I APPLIED IN ADDITION TO MARKET DERIVED ADJUSTMENTS.
I'M LOOKING FOR COMMENTS TO SATISFY LENDER AND BUYER THAT MY VALUE IS GOOD AND THE SALE PRICE IS TOO HIGH AND NOT JUSTIFIED.
THANKS,
JEFF

Hey Jeff.

First off, please turn off caps lock. It makes the data hard to read, and feels like you’re shouting the entire time.

Secondly, in a more professional way, tell the lender and buyer what you just posted here, and show/prove why you cannot make the sale price. Your job is to not hit a number, but to figure out what the market could bear at a point in time. If your data shows there is no way, even after looking for like comps to prove, you just need to show how you got there.

It is ok if they don’t like your answer, and they don’t have to like your answer. You are obligated to hold up the public trust with with your work, and you do nobody any service by trying to squeak it by if it can’t.

 

[J Grant]

Is a stretched value supportable or is a lower value better supported? Either way, you are under the SC price - so boo hoo - the buyer can pay more or the seller can lower the price. Not our problem

Don't grovel in your comments. Be succinct and professional.. I am assuming it is not a case of concessions affecting the price.

I make a comment along the lines of " A sale contract price can reflect individual buyer or seller motivations. The appraisal market value opinion was developed using the most similar sales and supported adjustments indicated. Additional sales and listings were considered."

THE END
If they want to put in an ROV, the lender will handle it.

 

[J Grant]

Appraiser will be happy to examine and comment on additional sales data (up to three) which the participants in the transaction feel are more representative of the market value of the subject other than the ones employed in the appraisal report.

I would not suggest making that kind of comment.

It is up to the lender to inform a borrower about the right to submit an ROV, and then it is up to the party to decide whether to submit one. The appraisers should not discuss it in the appraisal report.

 

[J Grant]

APPRAISED A 2 BEDROOM 944 SF RANCH WHICH IS UNDER CONTRACT FOR $355,000 AFTER 5 DOM. LISTING PRICE IS $320,000.
MY VALUE USING 6 COMPS AND STRETCHING AS FAR AS I COULD, CAME IN AT $345,000. NO WAY I COULD SEE $355,000. MLS STATS INDICATED A YTD INCREASE OF 5% WHICH I APPLIED IN ADDITION TO MARKET DERIVED ADJUSTMENTS.
I'M LOOKING FOR COMMENTS TO SATISFY LENDER AND BUYER THAT MY VALUE IS GOOD AND THE SALE PRICE IS TOO HIGH AND NOT JUSTIFIED.
THANKS,
JEFF

I would not comment that the sales price is too high. I try to stay out of their sale price as much as possible.

I just say the sale price was above ( or below ) the MV opinion. If there is a reason you know about, a bidding war or concession, then state that. If no apparent reason is present, then just say a SC price represents individual buyer and seller motivations or negotiation

Then repeat that the appraiser used the most similar comps and supportable adjustments and that you considered other data.

And then stop. No need for a biblical-length explanation.

 

[Mike Ault]

I would not suggest making that kind of comment.

It is up to the lender to inform a borrower about the right to submit an ROV, and then it is up to the party to decide whether to submit one. The appraisers should not discuss it in the appraisal report.

You are correct. I miss read the OP. That comment was in response to the hate mail I assumed that he was receiving. That comment comes "after submission".

 

[Dublin ohio]

APPRAISED A 2 BEDROOM 944 SF RANCH WHICH IS UNDER CONTRACT FOR $355,000 AFTER 5 DOM. LISTING PRICE IS $320,000.
MY VALUE USING 6 COMPS AND STRETCHING AS FAR AS I COULD, CAME IN AT $345,000. NO WAY I COULD SEE $355,000. MLS STATS INDICATED A YTD INCREASE OF 5% WHICH I APPLIED IN ADDITION TO MARKET DERIVED ADJUSTMENTS.
I'M LOOKING FOR COMMENTS TO SATISFY LENDER AND BUYER THAT MY VALUE IS GOOD AND THE SALE PRICE IS TOO HIGH AND NOT JUSTIFIED.
THANKS,
JEFF

It is what it is. Listed for $320,000, contract for $355,000. So it looks like they had a bidding war. Not your problem. Current market data does not support contract price. You can dress it up anyway you want. But that is the bottom line

 

[J Grant]

If a party contacts the appraiser, whether by phone, text, or email, simply refer them to the lender.