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Market value greater than all your comps!

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JoeB

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Member
Joined
Jun 1, 2006
Professional Status
Certified Residential Appraiser
State
New York
Looking for the valued opinions of the more experienced.
residential 2004_05 , 3 comparables selected, .5 mile and less than 6 months closed...perfect!
If the sales comparison approach leaves your final reconciliation value greater than the highest comparable sale that you used, would you be comfortable with the your opinion of value? Or would you take additional steps to avoid underwriter scrutiny?

p.s. the 3 comps are the best available.

Thanks for your opinions!
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Looking for the valued opinions of the more experienced.
residential 2004_05 , 3 comparables selected, .5 mile and less than 6 months closed...perfect!
If the sales comparison approach leaves your final reconciliation value greater than the highest comparable sale that you used, would you be comfortable with the your opinion of value? Or would you take additional steps to avoid underwriter scrutiny?

p.s. the 3 comps are the best available.

Thanks for your opinions!

Tell us more: Sales Prices vs. opinion of MV; net and gross adjustments; etc.

What are a few of the more significant attributes of the Subject that leads you to conclude that the MV is higher than the SPs of the best sold comparisons?
 

JoeB

Thread Starter
Member
Joined
Jun 1, 2006
Professional Status
Certified Residential Appraiser
State
New York
Thanks for your interest, Lee,
comp 1 $139,500 adjusted to $145,500 N.4.3% , G 4.3%
comp 2 $128,000 adjusted to $138,800 N.8.4% , G 8.4%
comp 3 $134,000 adjusted to $136,000 N. .7% , G 3.7%
opinion of value $141,000
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
What does your cost approach come in at? does it support the sales approach indication of value? and really the percentages here are soooo small I don't think anyone can argue your FOV. What is the single amenity that causes the comps to be adjustd upwards? GLA???
 
Joined
Oct 22, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Dont Sweat It.

You're fine.

You arent "bracketed", but so what. sometimes ya cant. Your reconciled value is within the range of the adjusted sales prices - put your value on it and move to the next one.

todd
 

David Wimpelberg

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Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
I recommend thinking beyond "comparables," and thinking more in terms of market data.

Is the highest sale that ever sold in your region $139,500? If so, you have no basis of coming to a value conclusion over $139,500; it's pure speculation (granted, we are talking about 1%+).

You can simply avoid any questions by providing sales data that has sold for greater than $139,500 in whatever form it may take. It may be properties improved with larger homes that are "not comparable." However, you're showing the reader than a market exists for higher-value properties.
 

Frederick

Senior Member
Joined
Nov 2, 2005
Professional Status
Certified General Appraiser
State
New Jersey
That bird ain't gonna fly........bracket it!

In a former life I commanded a Field Artillery Battery. I approach every appraisal like I did targets back in the day.

One shot over, one shot short....then split the bracket until the target is annihilated.

You have not provided a supported and defensible Opinion of Value unless you have clearly defined a floor and ceiling of the valuation bracket.

You need to illustrate market acceptance for the features encompassed within the subject, at that price level, within that location. Without a comp. sales price at or above that level you have not accomplished that task.

3 rounds, Fire for Effect!...shot out!....shot, over.....target annihilated
 

moh malekpour

Elite Member
Joined
May 25, 2002
Professional Status
Certified Residential Appraiser
State
California
to convince any reasonable underwriter, you have to prove that your subject is unique and atypical property in the neighborhood and it is superior in any aspect to all available sales, listings and pendings in your market within a reaonable distance. You have to prove that you are dealing with an odd ball property and there is noting similar or superior to your subject which is sold or listed in the area. You have to go more than 0.5 mile distance and look seriously at listings and pendings in your area and use them if there is any and if not, you got to explain that you tried and couldn't find anything and if there is any reason for that, you should explain it.
 

JoeB

Thread Starter
Member
Joined
Jun 1, 2006
Professional Status
Certified Residential Appraiser
State
New York
Thank you for your input! There were sales in the neighborhood over a year ago in which the same type, style and design property sold for over 139,500. The GLA was about 100sq.ft. to 150sq.ft. more on all 3 properties that sold from 143,000 to 148,000. I am afraid that the underwriter will conclude property instability and loss of value in the area. I tend to agree with Frederick and his conclusion but would have to travel over 2 miles for a supporting comparable. Very sad to say, that i have to save this comparable because i know the underwriter will request another comparable weather i use it now or hold it for latter. This is an example of continued underwriter harassment which does effect the way an appraiser does his job! If it wasn't a mortgage broker who this assignment was given, i would tend to believe it would pass with out question. Truth hurts, but this is reality!
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
I recommend thinking beyond "comparables," and thinking more in terms of market data.

Is the highest sale that ever sold in your region $139,500? If so, you have no basis of coming to a value conclusion over $139,500; it's pure speculation (granted, we are talking about 1%+).

You can simply avoid any questions by providing sales data that has sold for greater than $139,500 in whatever form it may take. It may be properties improved with larger homes that are "not comparable." However, you're showing the reader than a market exists for higher-value properties.

Since adding listings is in Vogue why not include three that were recently listed that support your value or higher and make an adjustment. Change your market from stable to increasing and move on!

If they dont support your value or even lower then make an adjsutment.
Change your market from stable to decreasing and move on!

:)
 
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