Lot Size Adjustment

[Pamela Crowley (Florida)]

Another thing I see all the time is that builders push 'premiums' on lots that most often the resale market doesn't take any notice of. I rarely find any additional value in resale properties for a cul-de-sac lot vs regular lot... or 6,000 SF SFR lot vs 8,000 SF SFR lot.

My question would be, "What other sales can be found that are superior to the ones that were used?". Please keep in mind the lender 'guidelines' also, mainly Fannie Mae's. I do make the supplemental guidelines very secondary to USPAP and do my appraisals using the newest, nearest, most similar qualified and verifiable sales then explain any supplemental guidelines that I exceeded. I MIGHT use a much newer house as a comparable for an older house, but would most likely put it in as a 4th comp and give it minimal or no weight, simply to show what is happening in the subject immediate market area. I would also question if the subject is/was overbuilt for it's immediate market area.

The only way you can find the real answers to your questions is to have another reputable and competent residential appraiser in your market area do a review or a new appraisal.

Good luck and let us know. It's an interesting case.

 

[RobRundquist]

Pamela,
As I write this, a new appraiser is appraising our place.
My guess would be they'll come in 20-40k higher then the other person.

What got me going on this was they stated that out place had an above ground spa in a follow up email, when I asked to explain the $4,000.00 adjustment they'd made to the only other comp. with a spa- However ours is built in and cascades into the pool- quite nice really.

I'm probably going to fill out the California OREA form 4001 with th USPAP violations which I feel occurred noted and send it off to them, asking for my money back. :yellowblack:

This should get their attention.

I've discussed this report with a 40 year MAI, a 20 year AG, a ten year AG, a ten year AR, and a partridge in a pear tree-
While they work with me and may be biased in my favor- (who's to say : ), the consensus is this person made a mistake , and won't admit it. Had they only admitted it, and made the proper adjustments this would all be over with.
sorry I rant....

I'll let you know the results of the new appraisal!

 

[Pamela Crowley (Florida)]

Incompetence does abound in residential appraising right now. Very sad, but very true. Built-in spa cascading into the pool - I would definately count as an amenity.

You're right, a simple "I'll look at it again and make any corrections necessary" would have been the right thing to do and could have been the end of it.

Thanks for the update and keep 'em coming.

 

[Otis Key]

Rob - listen to the others. Most of us will gladly help with providing the best advice and information we can. I do believe the crazy Duck up there has got the right idea.

 

[Abester]

I may be missing something, but if a lot is worth $X or $X/sf, it should have the same contribution in both the cost and sales comparison approaches. My answer to the question is that it is not reasonable since the lot is worth what it's worth, in whichever approach you use.

 

[Phil Rice]

the appraiser came in 20-30k light as a result of

I guess anything is possible, but this sounds a lot like Bob Bruss to me. Was this appraisal done for a refinance?

In my experience, most of the bad appraisers miss high.