I live in Arizona, but just completed a review of an SRA's appraisal in Florida

[Couch Potato]

I disagree. To the regular buyer it "doesn't work" And if it was such an easy fix why didn't someone do it already?

Exactly, it is most probably a failed system. Likely too small for the house, or improperly installed.

 

[Non Sequitur]

Maybe it was missing an addendum? :laugh:

One would hope. Any appraiser, with alphabet soup or not, should be ashamed if what is in the Neighborhood Description and the Description of the condition of the property is all the narrative there is.

I'm will not comment on the adjustments but this report (as posted) is sloppy at best.

A quick question: The subject sold twice for $100, is this how lender transfers are recorded in FL?

 

[The Sheriff]

There was more narrative, but they were all disclaimer statements about not being a home inspector, yadda, yadda, yadda. The same disclaimer statements were repeated approximately three times in different areas of the report. The report had a lot narrative, nothing though that was relative to the report. A fellow forum member has offered to complete a desk review on the report. I will be buying that member some beers in due time when I'm in Florida. Just hoping my boy isn't getting screwed on the sales price in the long run.

 

[Michigan CG]

That is not an appraisal. It is form filling. But thank goodness we have the $3,000 fireplace adjustment.

A proper appraisal will have significantly more pertinent narrative and explain in the reconciliation why they arrived at the value conclusion.

I understand a summary appraisal, summary means summarize, which would most likely include some summarization (is that a word?).

Our profession is suffering.

 

[Non Sequitur]

There was more narrative, but they were all disclaimer statements about not being a home inspector, yadda, yadda, yadda. The same disclaimer statements were repeated approximately three times in different areas of the report. The report had a lot narrative, nothing though that was relative to the report.

I believe you. One generic sentence for the neighborhood description and several pages disclaiming the same things over and over.

It's sad how many residential reports are filled with nonsensical narrative.

One of my favorite examples of nonsensical narrative comes from a local appraiser who pumped out many puppies during the boom: "It is the appraiser's extraordinary assumption that the best comparables were used in this report."

 

[Michigan CG]

.........."It is the appraiser's extraordinary assumption that the best comparables were used in this report."

You had to make that up......right????

At least he didn't use a Hypothetical Condition.

 

[Non Sequitur]

You had to make that up......right????

I wish. A client sent over a few of her reports to review, after reading them I suddenly became swamped with other work. This statement was her first sentence in every reconciliation section. Followed by a few other sentences of generic boilerplate.

 

[Michigan CG]

...........I suddenly became swamped with other work. This statement was her first sentence in every reconciliation section. Followed by a few other sentences of generic boilerplate.

Skippy will die, it may take some time, but he/she will die. I need to hire 14 trainees.

 

[The Sheriff]

The review.

Well, to protect the party that provided a Desk Enhanced Review, I will only include sections of the review where the original appraiser and the review appraiser's name does not show up.

Some narrative from the review report from sections that weren't included in the attachment:

Description Section Narrative:

In the 1004MC the data collected was for the subject's entire zip code area and not just for those sales that are competitive within the
subject neighborhood. The 1004MC was MLS system generated using the automatic 1004MC form filler supplied by the MLS. The search criteria
was set for houses between 2,176sf and 2,944sf and it used REO sales and short sales, which sell below market values, in the trend analysis. A​

revised 1004MC is attached, using only sales within the defined neighborhood boundaries from page one of the URAR. Also see attached.


Cost Analysis Section Narrative:

The cost approach was not completed in the appraisal under review. A site value of $24,000 is provided, and the source for the site
value is noted as "extraction". This site value estimate, whether accurate or not, has no effect on the appraised value and it is not being reviewed​

for accuracy.


Market Data Analysis Section Narrative:

Paired data from within the subject's immediate subdivision does not support the golf course and conservation adjustments made.
Paired data also supports a higher adjustment per square foot. The $5,000 half bath adjustment is higher than the cost to build an extra half bath in
a house when new. An adjustment more in line with a cost/depreciation analysis would be $1,500 for the half bath, and it is supportable by the​

market data.

Addenda Required:

The building sketch shows 9 rooms (LR, DR, Kit'n, FR + 5 BRs), but the appraisal states there are 8. The comparable map does not
contain all boundaries described in the neighborhood boundary section on page one of the URAR. The 1004D is acceptable, but the conclusion on
the declining market because values dropped from the middle period to the current period goes against Fannie Mae's directions that the analysis be​

based on the overall trend, which is stable. The signature page and certification reporting do not conform to the State of Florida's requirement.

Reviewer's Summary

Inadequate - Opinion of Value Unsupported/New Recommended Value Provided

The subject is selling as an REO sale and was listed at $209,900. Per ML # T241322, it was listed on 04/01/2010 and contracted
04/26/2010, or in 25 days. These contracts fell through. The subject was an active listing again on 05/03/2010 and it contracted on 06/02/2010,
per the MLS, or in 30 days. That means at $209,900 the subject contracted in 30 days or less twice. It is reasonable to conclude that the sale at
$178,000 reflects the lender owner's desire to sell. The report under review is a FHA assignment, and without a working HVAC system, the subject​

does not meet minimum property requirements for HUD. The reviewed value is therefore subject to the HVAC system being in working condition.

Sales Price: $178,000 Appraised Value: $178,000 Reviewed Value: $200,000


New 1004 MC Narrative

It is common for sellers to pay concessions from a few thousand dollars up to 6%. Often these concessions are openly
reported in the MLS and are verifiable. When such is the case, they have been adjusted for in the sales comparison approach based on their
effect on final sale price with the concessions, as opposed to what the sale price would have been without the concessions. Otherwise, only
when a party connected to the sale knew confidently the terms of the sale, were they reported as fact herein. There are no guarantees.


There are two REO sales in the market area that meet the search criteria below. These sales are "4806 Mirabella Pl", which closed
11/30/2009 for $293,000, which is located in a different project and is dated; and "19110 Cellini Pl", which closed 06/24/2010 for $212,000 but
is also located in a different project and not considered one of the better indicators of value.


The Lakeland Association of REALTORS database of the Mid-Florida Regional mlxchange MLS system.
The search parameters included all single family market sales between 2,176sf and 2,944sf in the neighborhood boundaries as defined on the
original appraisal, which were built from 1990 to 2010 and were on up to 1/2 acre.


There is a slight increase in value in the price per square foot and in the median value from the first half of the year to the current period. This
increase in value is not supported by the regional data nor the national data, presented below, and not supported by the most similar sales
available for comparison. The subject market is considered stable. The absorption rate was determined by given 25% of the weight to the first
period, 25% of the weight to the middle period and 50% of the current period. Applying the weighted absorption rate to the number of listings
available in the market, there is a 3.8 month supply. The median days on the market has been rising, but remains less than 3 months. The
median days on the market for active listing is also less than 3 months.
Using only sales in Heritage Harbor that are similar to the subject for the data above was considered, but there were only 6, and the last one to​

close was in May of 2010. Searching all houses skewed the results as the only recent sale in the project is small relative to the others.

 

[Mztk1]

I disagree. To the regular buyer it "doesn't work" And if it was such an easy fix why didn't someone do it already?

Because it is an REO sale selling "as is" and the bank won't fix anything - or so the appraiser is told. So he takes money off. Either way, a qualified expert would have to inspect for FHA and the HVAC system would have to be working properly.