Interesting request.

[BenLuby]

Friend of mine just got his home appraisal on the new construction house he just bought. All three comparables are from the exact same S/D, none are resales. There is a S/D a quarter mile down the road, similar plans and amenities, but no comps chosen from it.
Floor plan on the sketch is wrong plan, although GLA is close. Close enough, just off guestamites, to be within ten percent. However, the floor plan is defnitely not his.
Cost approach is a joke. Most of this information is simply from having him read the report to me, and finding it interesting that, in a S/D of nearly two hundred houses, not one single comparable could be found within six months?
He wants me to look it over and find out if he was duped.
Obviously, this is after the fact. I warned him before he bought about the neighborhood and what I saw going on in it, but would not commit to any value issues without research.
This isn't about money to me. I am not charging him for reviewing what he has. Already told him that I'll let him know whatever I find, and give him that data, up to and including better comps, but I will not give him a value.
I will merely let him know if I think he needs to bring this issue up with a review appraiser.
Any feedback or advice?
And yes, he knows I am only interested in the facts, and accepts that. We've been friends for quite a while, and neither of us hestitates to withhold bad information from the other. He just wants the truth.

 

[BenLuby]

One more thing: I've already clearly stated, when he gives me a copy of the report, I DO NOT want the name of the appraiser. I am not interested in that. I am only interested in the information.

 

[Joyce Potts]

Friend of mine just got his home appraisal on the new construction house he just bought. All three comparables are from the exact same S/D, none are resales. There is a S/D a quarter mile down the road, similar plans and amenities, but no comps chosen from it.
Floor plan on the sketch is wrong plan, although GLA is close. Close enough, just off guestamites, to be within ten percent. However, the floor plan is defnitely not his.
Cost approach is a joke. Most of this information is simply from having him read the report to me, and finding it interesting that, in a S/D of nearly two hundred houses, not one single comparable could be found within six months?
He wants me to look it over and find out if he was duped.
Obviously, this is after the fact. I warned him before he bought about the neighborhood and what I saw going on in it, but would not commit to any value issues without research.
This isn't about money to me. I am not charging him for reviewing what he has. Already told him that I'll let him know whatever I find, and give him that data, up to and including better comps, but I will not give him a value.
I will merely let him know if I think he needs to bring this issue up with a review appraiser.
Any feedback or advice?
And yes, he knows I am only interested in the facts, and accepts that. We've been friends for quite a while, and neither of us hestitates to withhold bad information from the other. He just wants the truth.

If his sister walks into the sales office today, what can she buy the same or nearly identical house for from the developer?

If it's for less than his contract, he needs to go to Plan B.

 

[BenLuby]

What I gathered so far, from questioning him:

One lender is handling the lending. 'Preferred Lender'.
Select agents. Also working with the lender and builder.
One Builder.
I am strongly suspecting one appraiser, as well.
I smell a rat. A well paid rat, but a rat.

 

[Smokehouse]

Make sure you keep a well documented workfile for the appraisal services you are rendering.

 

[BenLuby]

Make sure you keep a well documented workfile for the appraisal services you are rendering.

That's a given. I actually want to do a lot of review work once I get my license, as I enjoy the challenge of reviews. Takes longer, but it is more interesting.
But thanks for the advice. I tend to keep everything, even what I decide what not to use, and note why I didn't use it on the paper.

 

[3 Putt]

It's ok to have all the sales from the same neighborhood, if there is at least one outside of the developer/builders control. If all are within the developer/builders control, then you have an issue or maybe an inexperienced appraiser. Ideally re sales from within the same subdivision are preferable sales, as long as the builder is not involved in the transaction.

 

[BenLuby]

All three are from the same subdivision. I've got two three hundred yards down the street, literally, that are identical, same floor plan, as subject, in different S/D, carbon copies. Both sold within previous 3 months, both are under the appraised value of the subject by over 10k.
This looks like it is going to be an interesting investigation.

 

[Mike Kennedy]

post the address >>>>>>>>>.

http://mortgagefraudwatchlist.org/

 

[BenLuby]

Mike, once I am certain that it is what I think it is, I am going to do so. But I am not going to jump the gun until I know for sure.