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Hey, Mr. Stone Questions for you and others.

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Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
I did an appraisal a couple of weeks ago.

Subject is in Montfort, I used comparables in Lancaster, Fennimore, and Dodgeville west side.

Original appraiser used comparables in Mount Horb, Platteville, Mineral Point. Would you consider these the same market as Montfort????

The other appraiser marked his reported marketing time 3 to 6 months, yet two of his comparables were on the market 336 and 370 days. Yet his report said they were on the market 19 and 156 days on those two. I mark marketing time over six months.

He gives the neighborhood as Iowa County, but yet goes out of Iowa County for comparables sales with out noting why. He said property values are increasing yet my research said decreasing over the past year, He said supply in balance, but I show a much larger inventory then last year. He marks the area as suburban, I mark it as rural town, he marks the area as 75% built up, I mark it as under 25% for Iowa County, he notes low price is $300K and high $400K, I note $35K to $1M+ for the area, he gives the predominate age as 2 with a new to 5 for the area, I give new to 99+, he gives the area 80% single family, no two and multi and 20% ag, no commercial.

He also figured the age adjustment at $2000 per year on these new homes Subject is one year old, yet the other comparables were built at the same time and he gives them 1 to 3 years in age. My figures indicate on a new home around $500 a year difference. I have not check this for 12 months now, have things changed that much????

The other appraiser used acreages vs. lots. The subject is on .60 acres, where his comparables are on 1.5 to 3.5 acres. I think a town lot has a different appeal then the acreages lots. (Note below)

The subject is on a down hill lot on the down hill side of the main county trunk. The comparables he used are all on nice acreages with nice lots with similar types of homes and nice views the subject is among old small rural town homes. (I would think you know the area) So I am thinking a lot adjustment on views if you would use his sales selected as comparables, but there were none.

Myself I think Montfort is not really the same market as Mount Horb, Platteville and Mineral Point. Due to location on interstate and drive time to Madison and Debuke, Ia. Same for size of towns and appeal. Platteville also being a college town.

My appraisal came in at a lesser value and the owner and lender are having a fit. I came in $38K below the first appraisal that was done early last spring.

Would you say I am off base and need to reconsider or should I hold my ground.
 
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Stone

Elite Member
Joined
Feb 1, 2002
Professional Status
Certified General Appraiser
State
Wisconsin
Unless I'm missing something (like a particularly unique property or some other factor), your area seems much more like the market area to me. Considering the differences between 18 and 151, I have a hard time buying those cities. Mount Horeb makes no sense unless there is something not included in your post. I wouldn't prefer Platteville or Mineral Point, but Mount Horeb is way to close to Madison.

The market analysis part of your post almost makes it sound like the two of you were looking at completely different things.

Doesn't make a lot of sense unless I'm simply not understanding something.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Wisconsin seems to have more than it's fair share of cheesy appraisers.
 

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Unless I'm missing something (like a particularly unique property or some other factor), your area seems much more like the market area to me. Considering the differences between 18 and 151, I have a hard time buying those cities. Mount Horeb makes no sense unless there is something not included in your post. I wouldn't prefer Platteville or Mineral Point, but Mount Horeb is way to close to Madison.

The market analysis part of your post almost makes it sound like the two of you were looking at completely different things.

Doesn't make a lot of sense unless I'm simply not understanding something.


Your understanding. I thought I was under standing also. When the lender called me and told me he had another appraisal that was done on the property for more value. I knew then what I was going to see.

It has been and is quite common on appraisals out here and including ERCs now to be written by appraisers using different markets and calling them one and the same. They are still shooting for value.

If the man had simpily put the address of those comparables it would have brought up the other earlier listing or he was just blind and did not notice them for a reason.

This not doubt is going to cost me a client. But so be it.

In the original appraisal I counted at least 20 mistakes or cover ups so value would be there and nothing negative in the report.

I am adding it to the pile to send to the state.
 

Pat Butler

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
I actually took my kids to the mustard museum in Mt. Horeb last year. Has to be worth some sort of value premium!
 

DTB

Elite Member
Joined
Jun 11, 2004
Professional Status
Certified Residential Appraiser
State
Illinois
I actually took my kids to the mustard museum in Mt. Horeb last year. Has to be worth some sort of value premium!


Pat,

You sure know how to live. Makes us FIBS proud.:new_newbie:
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
"When the lender called me and told me he had another appraisal that was done on the property for more value."

"Send over a Review Assignment with that report and a check, I'd be glad to review it for USPAP Compliance."

"No? Well, have a nice day!"


IMO, absent an actual Review Order - the"Lender" simply and clearly attempted to coerce an Appraiser to revise his Opinion of Value.

p.s. always get such requests in WRITING AND always have 2 Express Mail envelopes on hand, pre-addressed.
 
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Pat Butler

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Mike N.- the sad thing is that I knew right away what that acronym stood for. :huh:
 

Stone

Elite Member
Joined
Feb 1, 2002
Professional Status
Certified General Appraiser
State
Wisconsin
Mike N.- the sad thing is that I knew right away what that acronym stood for. :huh:

What's so sad about it?:new_smile-l:

(BTW - when I was a kid, my father told me it meant "Funny Illinois Bum" when asked)
 
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