The subject is a dblw mh and was on the market for 380 days for $64,000 and sold for $60,000. 2 comparables in the area appear to be very similar models due to their style and sizes. Site sizes are typically .25 acres in this area as they are for the subject and two of the comparable. The third comparable is a little smaller, 10 years older and a singlewide. The comparables look as if they are going to adjust and indicate a value of approx. $75,000. The area appears to be stable at present from previous declines during late 2006 & 2007.
Personally, I don't have a problem appraising a home for higher than it sold less than a year ago. But, I'm thinking how I could explain this to the reader. The market conditions don't support it and the fact that it was on the market for 380 days doesn't support the higher value. The difference from sale price to opinion of value is a 20% increase. I can't exactly say it's an acceptable variance. I don't want to say it's the luck of the draw. But that's exactly what it appears to be.
Suggestions?
Personally, I don't have a problem appraising a home for higher than it sold less than a year ago. But, I'm thinking how I could explain this to the reader. The market conditions don't support it and the fact that it was on the market for 380 days doesn't support the higher value. The difference from sale price to opinion of value is a 20% increase. I can't exactly say it's an acceptable variance. I don't want to say it's the luck of the draw. But that's exactly what it appears to be.
Suggestions?