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Indicated Values

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Mary Tiernan

Thread Starter
Senior Member
Joined
Dec 16, 2003
Professional Status
Retired Appraiser
State
Michigan
I think I am in Friday evening mode and am just unable to come up with a brilliant closing argument to why my opinion of value is better supported.

In my most professional manner, I have managed to mangle an appraisal which had indicated values ranging $150,000 to $179,000.

My sales grid shows indicated values ranging $147,000 to $149,000. I have used three of the original comps, and provided three additional comps.

Now, in my rural area, there is really no such thing as paired sales analysis, except as provided on the sales grid. Each appraisal is a paired sales analysis, more or less.

Adjustments in the original appraisal were inadequate and applied willy-nilly - my adjustments result in more credible results, as evidenced by the tighter indicated values.

But, how do I express this ? Do I just state "as evidenced by the tighter indicated values?" Or is there a more appraiser-eze way to say it?

Maybe I should just put it aside until tomorrow - no, Monday . . .
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
Did you use the same comps as the original? If not, perhaps you could mention(if applicable) the smaller percentage of adjustments made to your sales--which suggests the sales provided were more similar, thus having more credibility.

Dunno, I haven't seen both appraisals.:mellow:
 

Craig Farr

Junior Member
Joined
Sep 26, 2004
Professional Status
Certified Residential Appraiser
State
Arizona
It sure looks like you are trying to fine-tune a tuba.
You admit that data in such a rural area is very limited, and that paired-sale analysis is not possible.
You don't mention the appraisal's final value opinion, nor yours. But I sense that they are about 5-6% different. If I were you I wouldn't make a big deal here, especially if data is so limited.
Is the appraisal otherwise fairly reasonable, professional? If so, there are bigger fish to fry.
 

Mary Tiernan

Thread Starter
Senior Member
Joined
Dec 16, 2003
Professional Status
Retired Appraiser
State
Michigan
OMG - I just realized why the original report looks like it does.

I just looked a little harder at original after Lawrences' post - none of their comps exceed 10/15/25. That's why the adjustments are so whacked - $1,000 for additional bath, $750 per acre. With those adjustments, the line, net and gross adjustments are within Fannie recommended guidelines. My analysis indicates $2,000 per acre, $5,000 per bath. Yes, this results in higher net and gross adjustments, but I am not doing an appraisal to underwriting standards, I am reporting the market.

Why do these folks do their best to stay within guidelines at the expense of a credible report? BTW - no, the report is not fairly reasonable or anywhere near professional - a monkey can input sales and make the adjustments fit guidelines. There is an 11% difference in market values - yup, they hit the sale price plus 3% for concessions.
 
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