MLS Comp Photos WTF!

[LindaSL]

I printed out the threads subsequent to my post. Thanks so much for taking the time to address my zinger. The more you know, the more you know you don't know.

 

[444nutman]

I printed out the threads subsequent to my post. Thanks so much for taking the time to address my zinger. The more you know, the more you know you don't know.

Make sure you really read Marshall and Swift. It will tell you how to do a proper cost approach. I dont think many appraisers have bothered to read it and make numerous mistakes on the cost approach. The cost approach can be a good tool to use but the problem is most appraiser spend less than 5 minutes doing it. They punch in a number so it is above the appraised value and move on. Dont quote Marshall and Swift if you not going to use it.

 

[VegasWayne]

I just checked the assessor's land value for my street. Last year (2009) each lot was valued at $47,950, this year (2010) it is $14,000. This number is used as part of a formula to determine property taxes and has no relationship with the land value in the cost approach.

 

[CANative]

Externalities are adversely affecting the value attributable to the land.

 

[DMZwerg]

DMZ... this is absurd. Would you expect an appraiser to drive by all of the sales considered (the entire list of 20 or 30 properties)? Because I analyzed each and every one and included them in a spread sheet presentation. What makes the difference between these sales and the ones in a grid... especially a comp 4-6 page?

HUD/FHA says all sales must be less than 12 months old but will accept over 12 month sales in the comp 4-6 grid.

Why are you entering 20-30 properties in the sales comparison approach grid???

Page 2 - "COMPARABLE SALE # 1"; "COMPARABLE SALE # 2"; "COMPARABLE SALE # 3"
Page 4 - "(3) inspect each of the comparable sales from at least the street"

I don't see anything that says a list of sales means they are all comparable. I have performed sold searches in which, even after excluding all listings indicated as REO/foreclosure, Short Sale or without a Seller Condition, yielded say 20 sales in which the bottom 8 were REOs, the top 5 were from a superior neighborhood, leaving 7 potential comparables. If I deemed all 7 comparable before I left the house, yes I would drive & inspect all 7 sales and the 6 most comparable active listings as well. I have rarely seen a search where there are 20-30 actual comparable properties, and if they were all comparable based on size (+/- 10% or less), style, condition, location (say 3 blocks), etc I would be wondering why 1/3rd of the block sold within the last 6 months! Since the list would all be within 3 blocks what would the problem be? Otherwise you reject properties until what is left is comparable and then inspect the comparables.



BTW, I have inspected over 15 properties I felt might be comparable for a single report. There was some question in my mind at the time so I did more work upfront to avoid doing rework later. Only used 9 IIRC, but typed in 12 before I could weed out sufficiently.

 

[Michigan CG]

Zwerg,

You are taking things too literally. I recently included a graph showing a trendline of 156 land sales. By inclusion of that graph do you believe that those 156 sales should be inspected and photographed?

 

[DMZwerg]

The scope of work in the limited condition section states you must inspect (drive by) all of your comparables. It is your choice to take the pic or not but the comparable must be inspected. If you use an MLS photo, state why and explain you drove by the comparable.

Not as far as I can tell by reading the 1004 form, just those used in the grid TECHNICALLY. I generally take more to try to cover all the bases.

I would have to agree with Mr. Boyd. I take between 4-7 comp shots because I narrow it down to about a dozen before I go and focus on the ones I want to use in the report after seeing the property. I didn't know there was a regulation that said you had to photograph all the comps considered and not used!

Your numbers sound about correct to me, except I examine all 1 dozen unless the actual GLA, condition, or such can scale it down significantly more for me.
I think some confusion was caused by somebody reading what I stated and what Steve stated above and combining the two in their mind.

If you perform a Cost Approach you have to determine a land value based on comparable land sales.

Does the certification imply that those also must be inspected from the street?

From what I read on the form it does not as I saw no mention of the exact term "comparable sale" in the 1004 for the cost approach. I could be wrong though.



From form 1004:

Page 2 - "COMPARABLE SALE # 1"; "COMPARABLE SALE # 2"; "COMPARABLE SALE # 3"
Page 4 - "(3) inspect each of the comparable sales from at least the street"

 

[DMZwerg]

Zwerg,

You are taking things too literally. I recently included a graph showing a trendline of 156 land sales. By inclusion of that graph do you believe that those 156 sales should be inspected and photographed?

To which exact post are you referring?

My read of the SOW in the 1004 is literally if it is used in the sales comparison approach grid the appraiser certs he at least inspected it from the street. Nothing about every property searched for, or used in a graph, or anything so PLEASE give me some quote of mine and post number to have some clue as to where this strange variant of what I believe I stated is coming from as you are the 2nd or 3rd poster to say I said what I don't remember "saiding".

 

[Michigan CG]

...........PLEASE give me some quote of mine and post number to have some clue as to where this strange variant of what I believe I stated..........

I might have a bad memory, and there are over 400 posts to sift through....I thought I read you taking exception to Greg putting a long list of other comparable sales on a spread sheet in the report.

 

[Mr Rex]

Need photos? Contact Zaio @ BR549Lost9k.