• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

highest priced house

Status
Not open for further replies.

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
There have been some threads about having to appraise the best and/or worst house in an area. Well I read these post and said I hope it never happens to me. Well finally it did :( this is what I got.

The area is a little run down area with the highest sale being $219,900 lowest sale $55K average $120. The subject is larger in basement sf, than any sale within a mile and a half (urban area), has an inground pool, pool house, good quality, on a half acre (5,000 sf lot minimum), and is basically overbuilt for the area. Even now having 6 comps (4 sales and 2 listings) in the area with the highest sale in the past year. I find that my final opinion is around $230K. Through the comps that I have I have been able to get a larger in GLA house (25 SF), larger in site size, similar in age, equal quailty (though 1,000 sf smaller and no basement), even got 2 with pools :p (that I didn't think I could do). The problem is that in someway or ways they are all lacking and inferior to the subject either in GLA, site size, quality, condition, no pool (no real value), or on arterial. So here lies the rub should I 1) just include the sales that are from the market area and splain splain splain that it is the largest best and most beautiful house in the market area and completly overbuilt for the area 2) use a superior house from another market area and make a location adjustment 3) both 1 and 2. Oh ya all 6 comps have gross and net adjustments over FNMA guidelines. By the by my cost approach is around $275K. :roll:

Then turn the report in and turn off the phone for the eventual calls that will be coming in about the "we need 3 more sales within 6 months within 1 mile, and with minimum Gross and net adjustments". :evil:

Ryan
 

David Bodtcher

Junior Member
Joined
Oct 18, 2002
Professional Status
Appraiser Trainee
State
Utah
Ryan,
I think your on the right track. Just remember, a well maintained house doesn't benefit in an unkept neighborhood. Of course with some of the improvements your talking about, they could be super adequacies.
In the market area here, I would probably do what your saying: provide comps in the neighborhood, make adjustments (since they would exceed fmna guidelines, just state it.) then provide 1 or 2 comps of similar homes in another neighborhood, then make a big location adjustment and state why. Then state about 15-18 times throughout the addendum, that all comps used were considered the best available at the time of inspection. Doubtful that would do any good, but it's good for a laugh when they write back that they want a more similar comp. Somehow a memo stating what was stated in the appraisal makes their brains click: "oh, there aren't any better comps? ok."
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
I agree. The more data, the merrier. At least you can say you considered all possible sales and bracketed the subject.

Roger
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Thanks for the replies. Was working on this one for about 6 hours straight (tough one). Figured I was tired and not thinking so I would get some fresh perspective.

Ryan
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks