Is this house too "Loggy?"

[Brad Ellis]

Greg,

I think that is the correct approach. Your subject obviously exhibits characteristics of both log and conventional styles so amparing them to both makes sense.

Again, no guarantee on a lender as this is certainly not usuual and the market has long exposure times.

Good old Ft. Bragg, eh?

Brad

 

[CANative]

I am reviewing the above noted appraisal, prior to it being released to the client. I have noted several items that need to be addressed, before the appraisal can be released.

Please address each of the following items in the body of the appraisal or in an addendum and resend the ENTIRE appraisal:

Sales 1 & 5 are too small to be considered as comparables for the subject property and should be removed from the appraisal.

Sales 7,8 & 9 , dating back to 1998 and 1999 add no support due to their age and the amount of changes in the marketplace., and should be removed from the appraisal.

Comps 2,3 & 4 support a value of $628,000

Comps 1 and 5 are the only log houses which have sold in the last 5 years and they are reasonably recent (last July and June, respectively)

Comp 7, 8, and 9 are historical sales which support my conclusion that value is not affected and exposure time is only moderately affected (actual estimates are in the report.)

They want to custom pick my comparables. I like my report the way it is. Do I bend to client desires? (again.. not the client but their AMC who rides shotgun on the stagecoach.)

 

[Ms. Janet]

Greg,
I find it very hard to believe you would have gathered, analyzed and presented all of that data without discussing it in the "body of the appraisal".............
More likely the appraisal has not been read and/or comprehended............:icon_eyecrazy:
I wouldn't remove a thing.........

 

[Ray Miller]

Have him/her fax you a copy of their appraisal license.

I just love it when I get those kinds of calls or faxes. My next question is did you read the each and every page of the appraisal report????????

Forgive for it been one of those days on the phone with them.

 

[Richard Carlsen]

Greg, I had an AMC do that to me once about 4 or 5 years ago. My report had 5 comps in it. The UW wanted two of the comps taken out and something, (it did not really matter what just as long as it was closer), put in the report. So I took the two comps out and found a sale (not relevant at all) that was within a mile. Before putting the new sale in, I sent the MLS sheet to the UW , asking if this was what he wanted. OH YES came the reply. So I put the new "comp" in, dropped value by $9,000 and sent the report off. Boy did the do-do hit the fan. They wanted me to change comps plus keep the same value. No way Jose.

The last I saw of that report, it had the original comps with the original opinion of value going to a PO'd UW.

 

[Angela Habercorn]

Hi Greg.

When I get that kind of request from an AMC, I call the head reviewer (usually an actual appraiser in my experience) and very shortly the problem goes away. I have even received apologies from the person who originally made the silly stipulation. It does no good explaining to someone who is following a checklist that comps 1 and 5 are only in the report because they are log. Especially since I know that you already commented about it in the report!!!!!!!!

And I think two log comps are plenty. No matter the size, location, etc. That is all I typically use and have no problems. Unless it is some So Cal lender who figures all log houses belong to Grizzly Adams and doesn't want to make the loan...

Angela

 

[CANative]

My two recent log house comps were less than half the size of the subject and required huge upward GLA adjustments and I felt my value opinion was not well supported at that point. So I found a log house that was almost exactly the same size and compared to to two other houses at that size that sold during the same period.

What makes me irritable is that they are not following the logic. Sure, there are three comps that will support a value, but in my mind I want the reader to know why they support the value.

 

[Angela Habercorn]

And it is the reader's responsibility to read your entire report...

 

[Bryan Reynolds]

Greg

Just a suggestion. I would try let the client know you have tried to locate sales that would be in a competitive nature with the subject if all where on the market at the same time.

Are the sales truly comparable? If a potential buyer was considering purchasing your subject and suddenly it became unavailable would they consider the sales you have chosen as a substitue property if they were on the market. If the properties do not meet their needs/requirments they are not comparable they are simply sales.

They may be the best sales available but I would classify them as sales, not comparable sales, if they would not be in a competitive state with the subject.


Lets say the subject is 4 bedrooms, on 10 acres, barn, lake, etc. It is a log home. In my market another 4 bedroom house, on similar acreage, barn, lake would be competitive even if it was not of log construction.


I sometimes will put this statement in a note to an underwritter. (I known its the old ver)


Buyers and sellers of real property operate in a competitive market setting; in essence, each property competes with all properties suitable for the same use in the particular market segment and often with properties from other market segments.
(Page 43, The Appraisal of Real Estate Eleventh Edition Appraisal Institute)


Good luck. Sounds like you have gone the extra mile.

Bryan S. Reynolds
Owensboro, KY

 

[CANative]

The report is pretty well explained with lots of details. It's been my experience when appraising log houses (or any other atypical houses) that lenders and their mad dog underwriters will want at least one sale of a property with similar improvements (and sometimes more.)

In this case, the client's AMC is telling me to take out the comps that are similar in construction style because I have other less objectional sales that support the value. It's my thinking that that's beside the point.

I would have to completely re-write the report with even more lengthy narrative to accommodate their whims.