Income Property Review

[TMcR]

Expanding the search I was able to find like properties unsure why OA used duplexes. 27 years appraising I wanted to make I wasn’t missing some new.

 

[TMcR]

Absolutely I never use unlike unit comparison, thanks for the additional information

 

[Terrel L. Shields]

and how did you come to "receive it?"

Doesn't matter. I've had clients attach an older appraisal to an assignment.

They adjusted both for for GLA and additional units.

A four plex could be 2 duplexes attached I don't see a problem adjusting for SF. But I normally will only consider adjusting for bedrooms and/or bathrooms regardless. And, if I do adjust for SF, the bedroom adjustment must carefully consider whether or not you are double-dipping room count and size both. In other words, the bedroom adjustment needs to allow for the size difference and I'd be more concerned about the extra paid for the extra bedroom, and make an income-based adjustment rather than size. But ultimately, the question is "Is the value reasonable?"

 

[ZZGAMAZZ]

Why do you care about their report - and how did you come to "receive it?"

I normally would not compare a 4-unit property to a 2-unit property unless desperate due to lack of comps.

J.G., would you prefer not to do so in the IA or just the SCA?

 

[Cob]

I received a copy of a report I’m currently appraising. Income property 4plex. The original appraiser compared subject 4 units to 2 unit duplexes. They adjusted both for for GLA and additional units. Typically I see this as double dipping. I don’t typically see unit adjustments as well. Advise helpful.

It has always been my way of thinking that I do NOT need a copy of an appraisal that someone else completed on a property that I am appraising, it's not ANY of my business what someone else did or didn't do as I was engaged to perform an appraisal on a property and NOT perform an appraisal on a property and also review someone else's appraisal report, unless of course they engage my and PAY me for a review assignment. The bottom line is that I am responsible and have to answer ro what I do on my appraisal assignments, that's hard enought to do on it's own, I don't have ANY need to be looking at what someone else did.

 

[Cob]

Doesn't matter. I've had clients attach an older appraisal to an assignment.


A four plex could be 2 duplexes attached I don't see a problem adjusting for SF. But I normally will only consider adjusting for bedrooms and/or bathrooms regardless. And, if I do adjust for SF, the bedroom adjustment must carefully consider whether or not you are double-dipping room count and size both. In other words, the bedroom adjustment needs to allow for the size difference and I'd be more concerned about the extra paid for the extra bedroom, and make an income-based adjustment rather than size. But ultimately, the question is "Is the value reasonable?"

You should find new clients........

 

[George Hatch]

IMO there's no such thing as too much information or too much external input. I can say no to someone else's opinions even more easily than I can say no to my own client. I always tell people that I'm willing to look at anything and everything. If I'm going to run into pushback with my conclusions I prefer to figure that out sooner rather than later so as to stay one step ahead of them.

I like to see the descriptions other appraisers use (so as to avoid missing something I shouldn't have missed). I don't pay a lot of attention to their comps because I still have to find my own comps.

 

[J Grant]

"I received an appraisal report" is vague language.

What does that mean ? We are appraisers here, just say it. Either an appraiser gets it as a review assignment, or the appraiser asked for it from X party. or was given it by a lender or RE agent or owner.

On occasion, I have had a RE agent or owner hand me an appraisal they wanted me to see. I accept it and tell them I will look at it but every appraisal is different and I will be doing my own research. I glance at it, and if it has any info I can use I take note, and if it recent, it might have a comp that I would consider. After that, I put it aside. It has no bearing on my appraisal or my opinion, but it could come in handy if a borrower complains later about a "low" value - well your last appraisal was an inflated POS , buddy -(I never say that of course)

I rarely have a lender give me a prior appraisal on a property I am appraising unless there is a special circumstances - such as an REO assignment where I can not access the property interior or similar reasons.

 

[Terrel L. Shields]

I don't have ANY need to be looking at what someone else did.

Nor does anyone but sometimes you can find some tidbits you were not told and investigate accordingly. Further, never hurts to double check sketches etc. And finally, if you have significant differences with the prior report, then you can either address the issue with some emphasis or better yet, be prepared to answer the clients' questions about it. Just because I get someone else's viewpoint on a property, does not mean I have to believe it. So, am I to suppose you refuse to look at the pictures in the MLS for subjects and comps so it doesn't taint your view?

When I was doing a lot of REOs (or as non-FNMA calls them OREs) for a bank, a prior report or MLS listing was handy in the event we were going pre-foreclosure drive-bys.

there's no such thing as too much information

Exactly.

well your last appraisal was an inflated POS , buddy -(I never say that of course)

sometimes perhaps we should

 

[TMcR]

It has always been my way of thinking that I do NOT need a copy of an appraisal that someone else completed on a property that I am appraising, it's not ANY of my business what someone else did or didn't do as I was engaged to perform an appraisal on a property and NOT perform an appraisal on a property and also review someone else's appraisal report, unless of course they engage my and PAY me for a review assignment. The bottom line is that I am responsible and have to answer ro what I do on my appraisal assignments, that's hard enought to do on it's own, I don't have ANY need to be looking at what someone else did.

Prior appraisal reports are often distributed by RE Agents often times unsolicited. With that said.... My question to the appraisal community concerned Unit adjustments for 4/units in comparison to 2/duplexes and how the community arrives at an adjustment. I have received great comments from the community and like the majority of appraisal reports by others I choose to ignore.