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Form 1025

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Artemis Fowl

Senior Member
Joined
Mar 16, 2004
Professional Status
Certified Residential Appraiser
State
Michigan
Long time since I used forms or form software. Please refresh my memory.

Page 3 of the 1025, SUBJECT column:

Shouldn't the Sale Price row be blank? If not blank, do the subsequent calculation rows beneath autofill on most software?

I'm looking at a 1025 that has the contract price in that Sale Price field. The grid's bottom rows (Value per unit, etc)all calculate to the contract price using the values from afore-mentioned calc rows.

Actual rent is used...no explanation. Final reconciliation says income approach not applicable because the typical buyer (of this 3unit in a student housing area) is not likely to purchase for income purposes. :cautious:
 
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nstanbru

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Feb 19, 2009
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Certified General Appraiser
State
California
Is this for a purchase or refi?
 

Howard Klahr

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Oct 4, 2004
Professional Status
Certified General Appraiser
State
Florida

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Page 3 of the 1025, SUBJECT column:

Shouldn't the Sale Price row be blank? If not blank, do the subsequent calculation rows beneath autofill on most software?

I fill in my value opinion with an E, to make the program calculate. Works in Total, worked in ACI when I used that.

If not buying for the income what are they buying for? Are they creepy old man that wants to chase college girls? :leeann2:
 

Artemis Fowl

Senior Member
Joined
Mar 16, 2004
Professional Status
Certified Residential Appraiser
State
Michigan
Unintended user/unintended use is how I ended up with it.
Was originally for a purchase.
 

App601

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Joined
Sep 7, 2014
Professional Status
Certified General Appraiser
State
Puerto Rico
I was planning to open a new thread but will post my doubt here I am appraising a 3 unit property and all the comparable sales found are 2 units Is it acceprabl not to fill the breakdown per units since they are different as well as per rooms and bedrooms also if they differ? and of course explain it
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
I was planning to open a new thread but will post my doubt here I am appraising a 3 unit property and all the comparable sales found are 2 units Is it acceprabl not to fill the breakdown per units since they are different as well as per rooms and bedrooms also if they differ? and of course explain it

I'm not fully understanding the second part of your question? But I'll take a stab at it....

I think you are looking at two sets of elements of comparison: Unit count and unit configuration (bed/baths within each unit).
If my subject's units are different in configuration vs. the comparables, and those differences warrant adjustments in the market, how do I account for those differences in my analysis?
The other issue is the contributory value of the 3rd unit: I've seen many appraisers make the mistake of dividing the price by three and using that as an adjustment. But is that valid? For the 2-unit comps, $/unit has 50% of the site value embedded within it. For the 3-unit subject, $/unit has 33% of the site value embedded within it.

So, my answer is one can certainly use 2-unit comparables for a 3-unit subject, but (a) the level of analysis and support within the report for the adjustments is going to be significant and (b) if the intended use is for mortgage financing, be prepared for many questions.

Good luck!
 
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Riick

Elite Member
Joined
Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
When the GRM is 30.... Buyers simply can't be thinking the property is going to make any money...unless they're mathematically disabled.

OTOH...have seen parents buy income property at University for their kid, thinking it will be mostly self supporting, and saleable at the end at close to acquisition cost...and maybe some profit.
 
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