Factors That Impact Complexity In A Real Estate Appraisal Assignment

[LordofTexas]

If you have properties with, "excellent similar comps all the time" does that not, in itself, indicate they are marketable properties? How can you have both "excellent similar comps all the time" and have limited marketability? I would think "excellent similar comps all the time" would have to come from an active market.

You're right, I should have said "their more limited marketability if these items are not cured". But, the point was; if you have 30 similar Comps even if they are all similar; the more that's wrong with the property adds considerable time to the report and asking for a fee increase for that is laughable from most Clients. I'd much rather do a 3,000 SF house in good condition and only 4 or 5 Comps than a 1,400 SF house in rotten condition but 30 Comps. Same fee, less headache. You only have to drive the 5 Comps and the narrative part is far less with no subject to, no cost to cure, no cost estimates; get the point yet?

 

[Mile High Trout]

Please provide different factors that impact the "complexity" of an appraisal assignment. I know it's a hard question, but very important to consider.

It's quite complex to operate on the same fee schedule from 20 years ago. End of story.

 

[Tim The Enchanter]

the more that's wrong with the property adds considerable time to the report and asking for a fee increase for that is laughable from most Clients. I'd much rather do a 3,000 SF house in good condition and only 4 or 5 Comps than a 1,400 SF house in rotten condition but 30 Comps. Same fee, less headache

This I agree with after this weeks reminder. I'd rather describe upgrades, than think Oh God, what will that cost to fix?

 

[KHS445]

In 1964 Supreme Court Justice Potter Stewart when describing obscenity wrote:

"I shall not today attempt further to define the kinds of material I understand to be embraced within that shorthand description ["hard-core ****ography"], and perhaps I could never succeed in intelligibly doing so. But I know it when I see it, and the motion picture involved in this case is not that."

Substitute complex appraisal assignment for obscenity/hard-core ****ography and I think you have the answer, I know it when I see it.

 

[George Ellerman]

Please provide different factors that impact the "complexity" of an appraisal assignment. I know it's a hard question, but very important to consider.

Any particular assignment where shooting comps in particular areas may mean you getting shot !!

 

[George Ellerman]

Any particular assignment where shooting comps in particular areas may mean you getting shot !!

Some additional elements contributing to complexity:
The owner is a fugitive.(Makes it hard to set up appointments)
Owner claims water in basement is an indoor pool.
Lender wants you to use comps in another state.
The MLS pictures are photo shopped.
The listing realtor's office is a van.
Local hazmat teams are familiar with the house.
Data collection is hampered when owners's pitbull eats your clipboard.
Weed height is affecting your Disto.

 

[J Grant]

Changing markets, where prices are all over the place, or prices jump around for no apparent reason..

 

[Joyce Potts]

How about if it's a multi-million dollar property and the liability factor due to the 'assessed value', GLA, known area for multi-million homes? Is that predicating a fee quote based on liability, value and/or complexity? I one like that the other day and when I looked the property up to see its location, complexity and noted the assessed value IN TERMS OF POTENTIAL LIABILITY, all of those factors played into my fee quote and turn time and I was chastised for it. No loss - they were phishing for low fees and quick turn times anyway. Certainly not thoroughness and quality for a property that was likely to have a high land:value ratio. Let a fellow SRA here in town do it for $325 like she's been known to do in the past and then complain about low fees and how hard she's working.

 

[Terrel L. Shields]

Some additional elements contributing to complexity:

You forgot one:
The day before the appointment, the fire department is interviewed on the local news and telling folks they are burning a "practice house" at the exact address you were supposed to go to."

I recall a guy who came before the Board of Equalization and he said he had came the last year and they had placed about $10,000 value on an old house which he claimed was worthless. They turned down his appeal. One of the BoE members said if he wanted to have the value removed, "burn it down".... So he brought us the pictures where that is exactly what he did. The local fire department used it for practice and so we took it off the books.

 

[BRCJR]

I w

You're right, I should have said "their more limited marketability if these items are not cured". But, the point was; if you have 30 similar Comps even if they are all similar; the more that's wrong with the property adds considerable time to the report and asking for a fee increase for that is laughable from most Clients. I'd much rather do a 3,000 SF house in good condition and only 4 or 5 Comps than a 1,400 SF house in rotten condition but 30 Comps. Same fee, less headache. You only have to drive the 5 Comps and the narrative part is far less with no subject to, no cost to cure, no cost estimates; get the point yet?

I would have gotten your point the first time had it been made properly.