• 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.

How do I get these assignments?

Status
Not open for further replies.

Robert Dunkle

Thread Starter
Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Oklahoma
I know I can turn down any assignment I don't wish to do, but this is my best client. Foreclosed house.. 2300+ sf in a neighborhood of 1000-1300 sf houses FmHA and REDC. Three in the hole addition are above 1500 and they have converted garages or walled in patios. This house is poor quality construction had two add-ons from the original. MLS says house has 5 BRs, but only 3 have closets. Other two rooms don't even have a window. Someone has poured paint all over the carpets, knocked holes in the drywall, tore up the appliances, etc. a real winner!!

I believe the best way to arrive at the indicated value is to look for other foreclosed (in poor condition) houses around the Metro area that are also mammoths in their respective neighborhoods, even if they are a few miles away. I have found several to use. The only close neighborhood of similar size houses would require $50-60,000 adjustments for condition alone, not to mention the fact that they do not have external depreciation from being that much larger than the norm. I believe the only way to get a true feel for the markets willingness to buy the condition and the large house in small neighborhood is to go where those conditions exist.

Like before, we are like economists...... four people, three to four viewpoints. What do you think??
 

Nancy in Friday Harbor

Junior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Washington
Uh, Bob?

Given the choice, I think I'd rather have your assignment than DeeDee's!!

In my area where any and all comps are few and far between, you gits 'em where ya kin find 'em and adjusts.

As I see it, you have two basic/major issues -- the size and the condition. Given lack of comps in similar condition, I would estimate "cost to cure" plus entreprenurial profit. On the size thing, I have, on occasion, not given any credit for extra square footage over a certain amount because the market data said that bigger houses weren't selling for any more than smaller ones given same neighborhood and amenities. This one is going to take more than three comps -- maybe some to show the size thing and some to show the condition.

And, let me guess, they want all of this on a 2055 for $175...right?! WRONG!!

Good Luck,
Nancy
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Robert,
Don't listen to Nancy ( :lol: ), at least my torture was relatively short compared to what you're probably going through.
I'd grab at least one comp in the same neighborhood that is as large as you can get with poor condition. The square footage adjustments will look ugly but at least the underwriters won't think you're trying to pull anything by going out of the area.
Good luck to ya,

Dee Dee
 

Lee in L.A.

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
I agree you should include at least 1 comp from the immediate area. Even if it is otherwise a lousy comp and requires many adjustments. Doesn't sound like a 3 comp deal either. In any case, I guess you've got some explaining to do. :!: :lol:

Have fun.
 
B

Bemis Pownall

Guest
welcome to the future
the assignments the AVMs cant figure out!
seems 1/2 my work resembles your assignment.
Aint it fun!
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
As can be seen from MY posts we are getting mostly the ones the AVMS or rubberstampers won't run also... rural far, wierd or UGLY.

Had an order last week from a former good client local bank:

step 1
9 am faxed order.
Good! Normal house, normal neighborhood, reasonable 'homeowners estimate of value' Oh this looks better than anything lurking on my desk today, I shall do this, and FEEL better!
step 2
9:15 am panicked call: "Have you called the homeowner yet?"
"Why no" Says I, "But I was JUST getting ready to, I just ran all the preliminary data searches."
"Good" says bank contact, "Please convert this to a drive by, we just got an adjusted FICO score, and won't need a full appraisal."
Sigh: "No problem" say I.
step 3
3:20 pm as I am rushing out the door to accomodate my former good client who I want to keep happy...

"CANCEL that order, they have such great scores we don't NEED an appraisal."

#^#$^%@^#%~!!!!! I say NOT....
:evil:

I am now not sure if this is a FORMER good cleint or a former GOOD cleint, if you know what I mean :cry:
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
LeeAnn,

Sometimes I think it would be great if we could just charge by the hour...I'm serious!!!! Let the clock start running the second that order comes over the fax and research has begun.

Here's my doozie du jour...
Newer log home, nice place, owner wants to refi. House is a sizable ranch with full lower level walkout. Lower level doesn't have permanent siding, just a sealed plywood exterior (no paint or stain). The photos don't lie, so I explain in the report that the home has gotten a Certificate of Occupancy, so the county building inspectors must think that it's adequate enough to be habitable. It's just a cosmetic issue that could have some negative market impact until cured at an estimated cost of around $2000.
Next thing I know the underwriters want my personal recommendation on how the exterior should be finished to minimal market standards so that they can demand that the homeowner do the work before they will give the loan. My response is that I refuse to give any recommendations. The homeowner says he is planning to put a stone veneer exterior on this summer and it seems silly to recommend something like a coat of waterproof paint (IF that would be the proper thing to do...I'm no expert on this and won't represent myself to be). Besides, if the guy decided to be spiteful and paint it pink it would only make things worse.
So here's the dilemma...I refuse to recommend a specific building material to cure (not MY job), so the LO and a different investor conference call me to ask that I eliminate all mention of unfinished exterior anywhere in the report. Investor says she will go to bat if for me if reviewers have a problem with the pictures (HA!).
It's a Catch-22...the report still has to go through the reviewer and anyone who's paying attention to the photos will be asking me why I didn't disclose the unfinished lower level exterior. Should my argument be that if it was good enough to pass through the county inspections then it's a non-issue? I thought it should be disclosed, because if exposed to the resale market a potential buyer would certainly consider it detrimental to the value. I can make a good argument for doing it either way, but I'll bet you anything if I take any mention of it out of the report I'll be catching crap because of it.
The killer is that the homeowner only needs a 60% loan-to-value on a place that's worth over $300,000...and he's doing the refi to finish up the house and drop his interest rate! Arrrrggghhh! Yer d*mned if you do and d*mned if you don't!
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Ok I have decided to do some venting. Just finished a sketch of a home that took 2.5 hours to measure in the field several days ago. Took 2 hours and two days of head scratching to figure out how to do the sketch on the computer. Lower level one size octogan with wings at 67.5 degrees, 45 degrees and 22.5 degrees, upper level a differant size octogan. But I got it!! Interesting tidbit for people who argue over measurments and that every appraiser is differant. I didn't have the county's field card until several days after measuring the home. The home was constructed in 1974, finally get a copy of the county's sketch from 1974 and although his sketch doesn't resemble mine or the house very well, his dimensions are exactly the same as mine! He would have calculated the livable area by hand and his is only79 square feet less than mine using Apex.

But the weird week I have had with clients. Did an appraisal three months ago, didn't fund, three weeks ago a new broker requested a retype, which I did after getting written permission from original lender. Still didn't fund because I reported in both reports that the subject had been on the market for two years at $225,000 and the current listing was now down to $155,00 for a month with a contract at $145,000. The seller had purchased the home less than a year prior to the $225,000 listing for $160,000. I reported all that in my report, realtor not speaking to me :D . Monday I get a call about doing a field review without an address in the call. Tell them to fax it over--turns out after my retype the broker had a different appraiser do an appraisal, his value is only a couple of $1,000 different than mine and he discusses the sales history. So now underwriter has questions about his appraisal--and I turned down the order for the review since it would have been my broker client--it has gotten very confusing. Same AMC orders another field review of a different property, same street as a file I am working on, but differant situs, so say okay fax it to me. After I get the report discover there is a mix up on addresses and it is the same property I am working on. So turn that order down. While writing up the report for my appraisal get frantic phone calls from the lender that the AMC was ordering the field review for--they couldn't understand why I wouldn't do a field review on a one week old appraisal report on the same property that I am appraising. The borrower is applying for a first mortgage with that client and a second mortgage with my client. So told them to contact my client (they knew about them already) and request a copy of my report when my client receives it. But they can't accept reports when just any appraiser, they have to have a field review by a national appraisal company! Oh what fun and the client for the unique house can't understand why I didn't have a report to them in less than 24 hours!

And the nurse thinks appraising would be easy! She needs to remember all the training, studying and stress it took to become a registered nurse and then double it for becoming an appraiser!
 

Lee in L.A.

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Sometimes I think it would be great if we could just charge by the hour...I'm serious!!!! Let the clock start running the second that order comes over the fax and research has begun.

I agree. Same thing has happened to me and many variations, such as Dee Dee mentioned. I bet it would cut down on stupid requests for addendums and "conditions" too. :!:

Lender wants an addendum stating that all deferred maintenace was listed in the comments on page 1 of the appraisal, and in the addendum. :? :x Just read the @#$%&* appraisal. :!:

Just today wrote appraisal of a condo where there is a pending lawsuit by builder against the HOA, and countersuit back the other way. Both asking about $2.5 Mil, and it's a 268 unit project. spent at LEAST and hour on tha 1 issue alone, reading attorney letter, talking to HOA's mgmt co,writing it. Oh, figuring out what to do...

Then the addendum to respond to the homeowners complaint that they didn't like my estimate of value. I was at $300k. they cited a "sale" across street at $311k. But it didn't appear in MLS, and only found it in 1 public records source (others showed no sale). It was similar size and would have indicated $300 to $310k. But, who knows about upgrades, or even if it's a good sale. Oh, built by same builder, so I wonder if it is larger than what public records say. Subject was about 400 SF larger than indicated there, but recent construction with no additions. so how do I know this "comp" is not the same story, and I didn't use it.

What a waste of time. :evil:
Oh well, I feel a little better now. Vent Vent.
 
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