Help! I need acceptable appraisal on unique property

[Annemieke Roell]

I had a lot to read, so if I missed this, I apologize, but..one question that I do not think has been answered yet is if 3 comps are required for a proper appraisal.

There is no set number of comps "required" to come to a value conclusion. It takes as many comps as it takes, but it is a FNMA guideline and an industry accepted standard. However, if it take 20 comps to support the value conclusion, it takes 20.

 

[Steve Owen]

I cannot imagine turning in an appraisal report (If it was going to Fannie Mae or any secondary market lender) with less than three comparable sales. Fannie guidelines require that as a minimum. What that does is to help prove marketability.

Now, if the comparables are not very comparable, then it might take more than three to come to a good, credible opinion of value. Fannie has other guidelines, such as bracketing the gross living area; meeting those guidelines often requires additional comps.

 

[Mike Kennedy]

I do not have a copy of the appraisal so I can’t be sure,...

In NY, if you paid a fee for the appraisal, either directly to the Appraiser per instructions the Appraiser received from the Lender, or paid it to the Lender, AND REQUEST a copy.........the Lender (not the Appraiser) MUST send you a copy.

Suggest contacting the Lender getting a copy and avoid speculation......

Suggest determining the "lender" ........?? mortgage company, bank, ????

Suggest determining if the Loan was to be a Portfolio Investment for the Lender........or was it required to be done on a Fannie Mae Form for possible resale......??????

Review the report and ascertain the License Level of the Appraiser; were there 2 Signatories?????? (i.e. trainee or licensed on left, Supervisory Appraiser on the right?)

Given the "unique" character of the market and property ......$350 seems like a "cookie cutter" fee ..........which does not reflect the complexity of the assignment.:icon_idea:

For those unfamiliar with the Adirondack Mountains.(upstate NY's smaller version of Blue Ridge, Cascade. Spectacular Densely Forested Land .....those with expertise in appraising similar markets may be in a better position to advise....

 

[Damon Pedersen]

Rebecca,

Three comparables are not required. You mentioned a nearby sale, but I am not sure if that was a vacant lot sale or what you were referring to. Say for instance your house is a one story and the neighboring house is a big two story, they may not be comparable. However, if it is the only sale in the area, I would still think that the appraiser maybe utilized it or at least considered it in some sort.

The industry standard is three comparables. I work in a rural area with unique properties as well. Sometimes I have one "good" comparable, meaning similar acreage size, similar square footage, year built, condition, etc, and then I may include anywhere from 2 to 7 additional comparables supporting various aspects of the appraisal. So, most appraisers will use at least three comparables, but that does not mean that each comparable has to be exactly the same as yours. We can and do adjust for differences.

I agree with some of the others prior comments. Lender selection is a major factor. If you are working with a big bank, they are reviewing this somewhere far from your locale and they do not understand the proeprty and/or the area.

Good luck.

 

[murray stroupe]

RE;Rural/unique property

You need a lender who has more experience with rural properties. No appraiser can make an appraisal in such an area that will look like one in a suburban or urban area. You might try a local bank......not a BofA branch or the like, but a locally owned small town bank, Or, a local credit union.

==================================

Good points & cant comment on the appraisal part of it;
but most of the property i have bought is rural.

And the last ''unique'' comment i recieved was from a out of town mortgage broker;
and they really started stalling /refused when i told them i didnt want to pay a prepay penalty.Laugh out loud.

Got the loan from someone else, since banks make thier money this way.If 2 or more local banks didnt want the loan would probably consider a no a blessing in disguise. And local assessors do overestimate values sometimes

Local banks[especially if you have a savings account with them ]are almost always better for this,Rebecca.
And since banking is a a business, hope you get your loan.Properties are declining [going down in value]in some areas & banks usually rightly consider non owner occupied more risky, to them & you.

A bank has to look at lots of things;
just looked at some unique rural land, days on market was a whopping 1400 plus days.

 

[Steve Owen]

Rebecca,

Three comparables are not required.

BTW, I've been meaning to get back to this and just forgot. But, I completely agree with Damon. My comments above were directed towards an appraisal prepared for Fannie Mae or the secondary mortgage market. In fact, even a comparable sales approach is not always necessary to appraise a property.

Murry, and the first poster who replied, gave you the best advice. Try to get a loan on this property through a local, home owned, bank. They will understand the demographics and the economy of the region and will also probably know an appraiser who knows how to appraise this property.

That does not mean that I necessarily believe there was anything wrong with the first appraisal. I could not make that determination without reviewing it. As I said before, it is at least possible that the lender rejected the property rather than the appraisal.

 

[Michigan CG]

Not to insult anyone...but the first red flag I saw was that you have a very unique property, where few comparables were available and your fee was $350.

How can anyone appraise a property such as yours for only $350? If your banker hired the appraiser they should hire an appraiser who is COMPETANT to appraise a special property like this.

I would tell Mr. Banker that I want to see the credentials of the appraiser, and what experience he has in appraising such properties. If your banker ordered an appraisal from someone who was not qualified to do this assignment then it is is his problem, and you should not be paying for it.

Recently appaised a unique property, probably not like yours (value was $2.5M), but the fee was $2500, and in Iowa, those fees are not the norm, or even close to it.

Apprasing unique properties like yours does not normally get a fee similar to a cookie cutter home.

 

[MamaBear]

I love it. All the times the LOs get upset when an appraisal doesn't "hit value" and now they are upset that this one is too valuable.

Good luck Rebecca. There is always plenty of good help here.

 

[Mike Boyd]

Just a thought. Maybe an FHA loan would work. The original purpose of FHA was to provide financing for rural properties. I'm not sure about the fact that you do not live in it full time. A mortgage broker who does FHA loans should be able to give you that information.