Low Appraisal. Please Help!

[Michigan CG]

$17,500 for surplus woods is rich.

I have had the "pleasure" of appraising properties in eight different states and the only time surplus woods had that high of a value is when the highest and best use of that land was in transition to being developed. Otherwise that wooded land has had a value of $1,000-$5,000/acre. That is just my experience.

 

[glenn walker]

I would not waste my money on desk reviews because unless he-she is employed by your lender they are not going to use the review anyway. Based on everything I read it's the Excess V" Surplus land issue and the 17K per acre appraisal over-inflated the value.

 

[J Grant]

OP, please do the industry a favor. If you find out, through a review that the private party appraisers over valued the property, consider a board complaint or other action. Because if indeed they did that, look at the harm it is causing you.

Have seen numerous times where appraisers on private assignments, often recommended by RE agents, inflate value, When the assignment is market value purpose, the MV opinion should be similar whether its a private or a lender client. Land value does not suddenly change because a client is different.

It's possible the bank appraiser is a dud, but a bank appraiser at least has no agenda and certainly no reason to bring an appraisal in "low:

Submit the comp sales from the other appraisals as data for lender to consider is an option. Something is amiss with one or two of the appraisals, I doubt 3 appraisals are bad on one property.

 

[Meandering]

I have had the "pleasure" of appraising properties in eight different states and the only time surplus woods had that high of a value is when the highest and best use of that land was in transition to being developed. Otherwise that wooded land has had a value of $1,000-$5,000/acre. That is just my experience.

ah but,

With the timber value, it could be so.

We've seen them sell with mature black cherry trees, they get timbered off, and then resell as "ready for development" at 1/4 the previous price.

We have log home builders here, that buy such lots/excess land, or just the trees.

That's the reason why the county question is very important here. 'Cause we aint paying that ifn we have to haul them.

.

 

[Michigan CG]

With the timber value, it could be so.

That is why I clarify my experience only.

 

[JTip]

Standing timber/stumpage prices ain't what she used to be.

Here is a great reference that gets updated quarterly:

http://extension.psu.edu/natural-resources/forests/timber-market-report

 

[Noreen]

Standing timber/stumpage prices ain't what she used to be.

Here is a great reference that gets updated quarterly:

http://extension.psu.edu/natural-resources/forests/timber-market-report

What a GREAT resource!!

 

[Eli]

Long story short... we are looking to buy my in-law's house. we had an appraisal done 1 year ago and they had their own appraisal 2 months ago.. $115,000 difference. Our lender's appraisal came back yesterday... $150,000 difference between my in-law's appraisal and the bank's. Our agreed upon price was a split of the original two. Now with the lender's appraisal we are still over $100 k apart. One or more of the appraisers didn't do their job appropriately. How can there be this much of a difference? How can we contest or challenge the lender's appraisal? This is an obvious deal breaker for all of us and the bank. Comp adjustments are all over the place... one adjusts 30 k for a finished basement, one 8 k. The property is on 11 acres... one adjusts 17,500 k per acre the other 5 k per acre? I can see where the numbers are off but why? How can one do "land" comparables then add this comparable amount (17,500 k) per acre to the adjustment when the other two did not do land comparables but added 5-8 k per acre adjustment? One looks at comparable homes on less than 2 acres but similar size, age etc and the others look at homes of similar size, acreage but almost double the age. Is a 4th appraisal going to be any different? Any advice? Thanks.

Ok, I'm sorry for being very direct. You have heard some help I hope. But you need to get a deal done and you want a credible and reliable opinion of value that you, your in laws and you all can rely on.

I have a strong feeling based on your post that you have an opinion of what the land is worth "as if vacant". If you do, then what are you basing your opinion on?

Jump back in. What do you think your best course of action is?

 

[Joe Flacco]

This is what I am talking about. It is very frustrating to me that the public can't read a appraisal report and understand the reasoning and logic behind comp selection and ultimately why the value is what it is. We need to do a better job of explaining why the value is what it is.

 

[Eli]

ah but,

With the timber value, it could be so.

We've seen them sell with mature black cherry trees, they get timbered off, and then resell as "ready for development" at 1/4 the previous price.

We have log home builders here, that buy such lots/excess land, or just the trees.

That's the reason why the county question is very important here. 'Cause we aint paying that ifn we have to haul them.

.

I used to work with some timber cruisers. They talked about white oak. I never heard about black cherry in my neck of the woods. Their mouth would start watering over white oak. One of them carried an HP12c in his back blue jean pocket. The hp12c looked like a tree might have fallen on it a few times. Lol. He was part owner in a sawmill.

I doubt seriously that is the case here but that is outside my area of expertise. A grove of mature pecan or walnut trees is prolly worth a fortune and not for the wood.