Hello everyone,
this is my first post on the forums. I apologize for the initial long post, however it was necassary to clarify the problem. I am fairly certain this question has probably been presented and resolved, however after an initial search, I was unable to find the answer. Anyway, down to the bread and butter.
I recently spent a full day working on a rush condominium appraisal for a good client of mine. The complex was originally built in 1970, however 20 years later, an architect decided to convert a storage space over to a well designed unit, that had 180 degree full view of a bayou, with twice the upgrades of any other unit in the complex. Great idea, except that is the very definition of overbuilt from an appraiser standpoint. This unit is being sold for 140k more then any other unit in our complex. Just what you like to see when you are resolving your scope of work.
Anyway, needless to say, despite the realtor having multiple clients willing to pay much more then any comparable in a 2 mile radius could prove, (This is an densely populted area of Houston, (Galleria area, just outside the loop) I was forced to cut the deal, due to the fact that true condominiums comparables, were selling for 80k less that were very similiar quality wise, and similiar views. All of this is day to day life for an appraiser, except one major problem. Realtor's, LO's, and probably quite a few appraisers do not understand the difference between condo's and townhomes in this area. I spent a full day weeding through a ton of condo "comparables" that were in fact townhomes, and attempting to explain to all parties involved the difference between the two.
Here is my problem, that hopefully can be resolved. It is quite common in our MLS system to have a townhome listed as a condo, however this is often simply an error by misinformed realtor. Using the legal description was not reliable as a source to differentiate the two, as our public tax records even seem to be confused about the legal use of these development. I was forced to calling the management company's up and confirming their use. This is a tedius, and unreliable source, as the instant you say your an appraiser the person on the other end, is trying to get off the phone with you as quickly as possible.
To give you an idea of the nightmare, it is common for a townhome to be listed as having no lot size, a legal description that describes a condo, and yet in fact is a townhome. I even found one complex that the management company said was half condo's half townhomes?!? One of the fellow appraisers in my office stated that if the legal description has a lot and block, then it is definately a townhome. I personally am skeptical of this, and would cut and paste a legal description that by all means should be a condo and is a townhome, unfortunately Vista is not allowing me to cut and paste at the moment. I thought perhaps tossing this conundrum out to the vast knowledge base here in the forums may find a resolution to the this problem. What techniques do you use?
As a side note, the loan officer later e-mailed me back saying he contacted 2 other appraisers, and one said he was nuts, and the other said she could do it.... Hardly suprising.
On last sidenote, Houston is not zoned for the most part, rather it is deed restricted. The public tax record's accuracy is minimal at best.
this is my first post on the forums. I apologize for the initial long post, however it was necassary to clarify the problem. I am fairly certain this question has probably been presented and resolved, however after an initial search, I was unable to find the answer. Anyway, down to the bread and butter.
I recently spent a full day working on a rush condominium appraisal for a good client of mine. The complex was originally built in 1970, however 20 years later, an architect decided to convert a storage space over to a well designed unit, that had 180 degree full view of a bayou, with twice the upgrades of any other unit in the complex. Great idea, except that is the very definition of overbuilt from an appraiser standpoint. This unit is being sold for 140k more then any other unit in our complex. Just what you like to see when you are resolving your scope of work.
Anyway, needless to say, despite the realtor having multiple clients willing to pay much more then any comparable in a 2 mile radius could prove, (This is an densely populted area of Houston, (Galleria area, just outside the loop) I was forced to cut the deal, due to the fact that true condominiums comparables, were selling for 80k less that were very similiar quality wise, and similiar views. All of this is day to day life for an appraiser, except one major problem. Realtor's, LO's, and probably quite a few appraisers do not understand the difference between condo's and townhomes in this area. I spent a full day weeding through a ton of condo "comparables" that were in fact townhomes, and attempting to explain to all parties involved the difference between the two.
Here is my problem, that hopefully can be resolved. It is quite common in our MLS system to have a townhome listed as a condo, however this is often simply an error by misinformed realtor. Using the legal description was not reliable as a source to differentiate the two, as our public tax records even seem to be confused about the legal use of these development. I was forced to calling the management company's up and confirming their use. This is a tedius, and unreliable source, as the instant you say your an appraiser the person on the other end, is trying to get off the phone with you as quickly as possible.
To give you an idea of the nightmare, it is common for a townhome to be listed as having no lot size, a legal description that describes a condo, and yet in fact is a townhome. I even found one complex that the management company said was half condo's half townhomes?!? One of the fellow appraisers in my office stated that if the legal description has a lot and block, then it is definately a townhome. I personally am skeptical of this, and would cut and paste a legal description that by all means should be a condo and is a townhome, unfortunately Vista is not allowing me to cut and paste at the moment. I thought perhaps tossing this conundrum out to the vast knowledge base here in the forums may find a resolution to the this problem. What techniques do you use?
As a side note, the loan officer later e-mailed me back saying he contacted 2 other appraisers, and one said he was nuts, and the other said she could do it.... Hardly suprising.
On last sidenote, Houston is not zoned for the most part, rather it is deed restricted. The public tax record's accuracy is minimal at best.
. I do appreciate the input thus far, it's been enlightening.