Listings as Review Comparables

[Rufus]

The "rush" stuff always make me nervous that they were hoping that the process would be so quick due dilligence would suffer.

Congrats on getting it finished properly. The rush stuff is generally when they are expecting a quick rubber stamp approval.

 

[CCAAMO]

Working on a field review of a "rehabbed" 2 unit on Chicago's south side. Severely declining area (50% over past 12 mos). Original comparables all over six mos. old and not reliable as two of three had same grantor/grantee and all three had same listing agent. Appraised value $350+. 56 sales in past six months, 238 actives. Problem is there are no sales of "rehabbed" bldgs. in the past 6 mos. All, with the exception of 3 others which sold under the circumstances listed above, are bank owned. Looking for opinions of using only listings as review comparables. Unorthodox, I know, but given the current condition of the market area, it seems to be the most reasonable approach. Your thoughts...

In a declining market, if the listings were available to the appraiser and indicate a lower value than the appraised value then they may be the best comparables. Remember, your reviewing the appraisal, not making a new appraisal.

 

[athome77]

Assignment is completed but I thought I should provide this clarification:

My concern was in using only listings as additional comparables. Thanks all for the advise and keeping the discussion at a professional level. This forum has been a great resource.

 

[timd354]

Just e-mailed the report. Original value $365,000. Reviewer's opinion of value $175,000, assuming full renovation including all applicable permits and inspections. No more "rush" field reviews for me. Keep thinking back to that appraiser on the Sopranos who wouldn't "play ball." If I remember correctly, his measuring tape and clipboard were never the same. Hope I didn't stumble into something bigger than I realized. The "rush" stuff always make me nervous that they were hoping that the process would be so quick due dilligence would suffer.

Not only did you do a review, you did an appraisal since you gave your opinion of value.....I hope you enjoyed doing all of that as a rush.....I will never, ever give an opinion of value as part of a review, if a lender wants a review, I will do a review, if a lender wants a review and want my opinion of value, then they can pay for my review and my appraisal. If they don't like that, they can take a hike.

 

[timd354]

In a declining market, if the listings were available to the appraiser and indicate a lower value than the appraised value then they may be the best comparables. Remember, your reviewing the appraisal, not making a new appraisal.

As soon as he expressed an opinion of value, he not only performed a review, but he also did an appraisal.

 

[athome77]

Yes he did an appraisal review and an appraisal and was compensated accordingly.

 

[Kevin Mc]

Remember, your reviewing the appraisal, not making a new appraisal.

He did both.

From Timd354

Not only did you do a review, you did an appraisal since you gave your opinion of value.....

Exactly.