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condo conversions central florida

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444nutman

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Senior Member
Joined
Jun 20, 2007
Professional Status
Certified Residential Appraiser
State
Florida
I have picked up a new client which is sending me alot of reviews of only condo conversion projects. I am wondering why there is a high rate of buyers out of Miami or Hileah. I have noticed this trend in the last 10 I have done. The second thing I noticed is the appraisers are out of Miami as well. Who the heck drives to Orlando from Miami to do an appraisal. They all slap 3 builders sales in the grid and call it a day.

I was wondering does anyone think these buyers may be straw buyers? I am just thinking out loud and wondering if anyone has an opinion.
 

Couch Potato

Elite Member
Joined
Mar 15, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Not only are they straw buyers, they are straw appraisers.
 

J in Florida

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Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Do google searches for these projects. You might find that they may have been giving away 3-4 years mortgage payments, 3-4 years paid HOA and RE taxes, Guaranteed above market rental programs for 3-4 years, 20% RE commissions paid to selling agents, and maybe even a nice "decorator allowance" thrown in for good measure.

I'd also be curious to see if the HUD-1 that the lender received is the same one as the buyers/sellers received.

So I hear.
 
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Couch Potato

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Mar 15, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
I received emails advertising RE commissions as high as 35% on some condo conversion projects in Orlando.
 
Joined
Jan 5, 2004
Professional Status
Certified Residential Appraiser
State
Florida
A little off topic re condo's. In my reviews and first hand experience I have found in Lee County FL that if the buyer and seller are are from Miami, the mortgage broker is from Miami and the appraiser is from Miami, it in my opinion it never smells good. Of course I'm talking 2004-2006.
 
Joined
Nov 7, 2005
Professional Status
Certified Residential Appraiser
State
Florida
I've noted the similar trends regarding buyers. Everyone from either south FL, CA or NY - few local buyers. I imagine in the Miami scheme, the appraisers came up maybe once took pics and just reused them over and over and over.....

So what is the lender going to do about this? Are the S FL appraisers real appraisers still holding a license?
 

Joyce Potts

Elite Member
Supporting Member
Joined
Feb 6, 2005
Professional Status
Certified Residential Appraiser
State
Florida
I have picked up a new client which is sending me alot of reviews of only condo conversion projects. I am wondering why there is a high rate of buyers out of Miami or Hileah. I have noticed this trend in the last 10 I have done. The second thing I noticed is the appraisers are out of Miami as well. Who the heck drives to Orlando from Miami to do an appraisal. They all slap 3 builders sales in the grid and call it a day.

I was wondering does anyone think these buyers may be straw buyers? I am just thinking out loud and wondering if anyone has an opinion.

YA THINK?:rof::rof:
 

444nutman

Thread Starter
Senior Member
Joined
Jun 20, 2007
Professional Status
Certified Residential Appraiser
State
Florida
The other thing that gets me is none of these appraisers are using non builder controlled sales. I had one who used all 3 comps from the same buyer and all builder sales. Red flag anyone. If they would have went outside the sub then they would have realized they are not worth what they sold. I am looking at 200k+ sales 14 months ago selling for 50k now. It makes me so angry cause I lost clients because I would not use all builder sales. The most I would use is one. The problem was all the builders lied. they would not provide HUD sheets. Throwing in 20k for decorating and god knows what else. The appraiser did not verify infomation and are getting burned. No wonder all these conversion projects are sinking.
I just had someone try to get me to use builder sales less than a month ago. I told them I do not use builder sales. They got all bent out of shape and got about 3 other phones calls from different people in that office. I held my ground and will put them on the list of lenders that wont use me anymore.
 

Jon Green

Freshman Member
Joined
Jan 2, 2007
Professional Status
Certified Residential Appraiser
State
Florida
Condo

Same situation here in Tampa. Most of the buyers/owners I see are from the Miami area. I've also noticed that some of them were listed with Listing agents from the same area. One conversion here in Temple Terrace had a sale a few months back for over $200k when there are over 20 listings for a similar unit for around $130k. How did that close???
 
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