- Sep 15, 2020
- Professional Status
- Certified General Appraiser
Don't get mean on OP. Okay, OP, you have an option of ROV. That is a reconsideration of value. Talk to your lender. Ask them if they know what an ROV is? "reconsideration of value"I got to witness my first appraisal. It was interesting. It consisted of a 10 min tour through the house and maybe 5 minutes to walk around the outside. I spent a lot of time researching and reading over the last year. I was within a few thousand of where I thought it would land on my refinance. I worked the number up just out of curiosity, I only needed a certain dollar amount and knew I would be over that. It was a little harder than I expected being in a rural area with no comps within a few miles. I feel like I was pretty spot on, especially considering 2 of the houses that were used for comparison were two of the 6 that I had listed and based my guess on.
My appraisal came back good and my questions are just for knowledge.
I realize the comps and research take a lot longer than the physical part of the appraisal.
Property is around $250k and 2k sq feet.
A few questions:
1) Is there any way to determine the land value from a standard appraisal? I see a line under the comps that reads site with adjustments for the price. The value of the adjustment is different for each one. On one the SQ ft is listed at around 20k sq ft for the property and gives my 3 acre lot a $15k adjustment. On another it is listed as 35k sq ft and gives me a $8k adjustment. The final one is half an acre less than mine and gives me no adjustment.
That is the only mention of the land I see. I read that as my an land is worth $6k an acre on the first one and $4k on the second one. I think that is a little on the low side. For $4-6k an acre, I'd certainly buy all the neighboring land if I could. I'm not sure if I am making a connection that isn't there. Land is relatively cheap in my area but I'd Do these adjustments mean something else or would they adjusted for the area and actually worth more than mine per acre? Given that my appraisal doesn't list a land value outright that I see, I doubt these others would. It would almost require appraising the comps and doing comps on them to give a value in that manner.
Can anyone give me some insight into how that line works?
2) I didn't realize there were so many rules for appraisers. I tried to find an appraiser to give me a walk through and point out things I should fix/do to ensure my home had a clean appraisal and to maximize the value but all of you have been so busy that I could barely get the appraisal for the house at all. If I have some questions about my property, how would I approach the appraiser? I should of asked when he was here but it was all pretty fast.
Could I offer him a consultation fee for email/text/phone call only consultation? Would asking the value of my land per acre be outside of a consultation? I just want to know some basic information and I don't need any paperwork or anything.
Can appraisers legally make any comments as to whether a price is within the realms of accuracy? Say that I wanted to buy an acre from a neighbor that is much the same as my land, would I be able to discuss a potential value with an appraiser acting as a consultant? If not, would I be able to discuss how I determined the value for myself based on local sales and they agree or disagree that my work was reasonably close to a conclusion that an appraiser would come to? Could they answer what the range for an acre of land would be in my general area?
TLR How restricted would an appraiser acting as a consultant be? What are the rules an appraiser follows in this situation? If someone was doing a private cash purchase, do the appraisals have to be formatted the same as a sale involving a bank with all the same rules?
3) Two of the comps were C3 condition and one was C4. My home is a C4. On 2k sq foot +/-, a C3 condition only gives a $6k boost in price(It was a -6k adjustment). That doesn't seem like much to go from average to near perfect. Is that pretty normal? How big of a difference does C2 give generally?
4) What can you guys mess up so bad that you would need $1m in insurance? Is that like accidentally knocking someone's house down/running them over or is that messing up an appraisal and getting sued for costing someone a lot of money?