Entered for comp purposes only.

[CANative]

See this a lot but this time it's a non-arms length transaction between family members. So how is it a comp?

It's frustrating because I have no good comps (I can get the job done but everything needs a lot of adjusting and this property has excellent comparbility to the subject in terms of property characeristics and no adjustments would be needed).

Trying to figure out how to work it into the report. Public data shows a sale price of $800k with $100k private loan and a $400k BofA conv. loan. XX 1990 family trust to XX 2009 family trust.

 

[PLCG]

How did they arrive at that sale price? You might want to call and see if they had an appraisal done. We recently had a family business that sold off a lot of land. They had each parcel appraised and that was the price they got - no negotiating, family or not. I think one granddaughter bought a parcel and the rest were all non-family. Their lawyer vouched for the fact that they all paid the appraised price. Worth a try if only for a mention if you are really hard up.

 

[RSW]

You would think that after 20,000 posts you would know the answer to that!

 

[Ricardo]

Drum roll please... it is what it is. And if it's not arms length, then it's not a comp.

Sometimes a lot of adjustments are needed - so ? Sometimes you have to go a long ways away for comps - so ? On the other thread we hammered out about mfg homes, I went 27 miles for a comp.

If it was easy, anyone could do it, and we wouldn't be making the big bucks, right ?

 

[CANative]

None of my comps are more than about 3 or 4 miles and a couple are less than a quater of a mile. If I wanted more comps I'd have to drive at least... hmmm... there are no other locations for more comps so I'm stuck with these.

FTR... I've had to use comps as far as 100 miles from the subject on MH assignments. The 100 mile comp was only 15 miles from my house but in a different county. It needed a million dollar adjustment.

 

[The Warrior Monk]

I'm one for using all sorts of market data to come to a value conclusion...but this isn't one of them. It's simply not arm's length, and there are many reasons why these transactions may not be at market levels, which the appraiser will not be privy to.

 

[CANative]

But the recorded sale price was right in line with the arms-length transactions.

Should this sale be discussed narratively (versus presented in the sales grid of the fannie form?)

 

[Abester]

Report it as a non-arms-length transfer (which can be at market levels)! I'd leave it out of the grid but include it in the analysis.

 

[David Mescon]

I would check the sale out thoroughly with as many parties to the transaction as possible, i.e., buyer, seller and or anyone else with direct knowledge of the transaction. Just because a transaction is intra-family doesn't mean it wasn't arms length.

 

[Desiree Mehbod]

You would think that after 20,000 posts you would know the answer to that!

Am I missing something? RSW, do you mean to tell us that the number of posts an appraiser submits on this forum equates to his/her knowledge? So based on your analogy, the novice/trainees on this forum with high number of posts know more about appraising than experienced appraisers with less posts????

“A sarcastic person has a superiority complex that can be cured only by the honesty of humility.” ~ Lawrence G. Lovasik