Must Comment on Market.

[cwhalstead]

Hey Guys ('n Gals),

I just received the lender condition below.

"Appraiser to provide 3 new current comparables required within .5 miles and sold within 3 months. If additional comparables can not be provided, appraiser must comment on the market in detail."

There are no additional comps for this property. The market has been extremely sluggish. Most of the sales in that area are REOs (not arms length) and are just not good comps (similar). However, despite that, with the comps I submitted initially, it did make value.

The lender, who would have taken this appraisal written on the back of a napkin two years ago, now wants proof beyond any shadow of a doubt, that this property is worth all of $165,000.

Doe's anyone have any ideas/responses (successful canned response would be ok too) that they could share on this???

Thank you,

Chuck :Eyecrazy:
Living the Vida Loca (not really)

 

[Michigan CG]

Hey Guys ('n Gals),

I just received the lender condition below.

"Appraiser to provide 3 new current comparables required within .5 miles and sold within 3 months. If additional comparables can not be provided, appraiser must comment on the market in detail."

There are no additional comps for this property. The market has been extremely sluggish. Most of the sales in that area are REOs (not arms length) and are just not good comps (similar). However, despite that, with the comps I submitted initially, it did make value.



Thank you,

Chuck :Eyecrazy:
Living the Vida Loca (not really)

Why are you not using the predominant sales in the neighborhood? If REO is driving the market then you should be using them. And who says that an ROE is not an arm's length sale? Typical seller is bank. Typical buyer is buying REO. Each bank is as typically motivated as the next bank.

Anyone trying to sell now that is not REO is mostly likely as motivated as the banks or they wouldn't be selling in this market.

If you are not using REO and short sale comps in an area dominated by them then you might be over valuing the subject property.

 

[Marcia Langley]

They evidently want more support for your conclusion. If you feel you already did a good job of explaining the market and commenting on nearby sales that were not suitable as comps then just point them to that section in your appraisal.

If not, maybe you should send more commentary. Especially if you did not already comment on more recent and more proximate sales. That's not oo much for them to ask.

If you already did a good job and this is a "moving goal post" request I'd just tell them my report already covers it but might offer to send more commentary for a fee.

 

[cwhalstead]

Thank you Tim... I didn't really think of it that way!

 

[JonGalt]

However, despite that, with the comps I submitted initially, it did make value.

:new_popcornsmiley:

 

[ddnma]

What do you mean by: "it made value"

I don't understand something making value- value is what it is...

 

[Pamela Crowley (Florida)]

Hey Guys ('n Gals),

I just received the lender condition below.

"Appraiser to provide 3 new current comparables required within .5 miles and sold within 3 months. If additional comparables can not be provided, appraiser must comment on the market in detail."

There are no additional comps for this property. The market has been extremely sluggish. Most of the sales in that area are REOs (not arms length) and are just not good comps (similar). However, despite that, with the comps I submitted initially, it did make value.

The lender, who would have taken this appraisal written on the back of a napkin two years ago, now wants proof beyond any shadow of a doubt, that this property is worth all of $165,000.

Doe's anyone have any ideas/responses (successful canned response would be ok too) that they could share on this???

Thank you,

Chuck :Eyecrazy:
Living the Vida Loca (not really)

Chuck, what 'value' would you have opined for it if you didn't know what 'value' they wanted?

Canned comments are no longer acceptable. Paragraphs citing your own data and analysis of that data - data that is significant and relevant for the subject property and it's immediate neighborhood and it's market area is now necessary. Only the local, competent, and experienced appraiser can answer the questions they now are asking.

 

[Smokey Bear]

However, despite that, with the comps I submitted initially, it did make value

Oh please tell me you didn't say that.

BTW, why don't you wow them and include the spreadsheet chart you created to determine what the market was doing? That usually shuts them up.

 

[Wayne Tomlinson]

Anbody got a selection of Spread Sheets.

Us folks who only have about six sales in a month to use, don't have enough data to make a really good, impressive spread sheet. If someone has some that I could use, I will put in the town that fits the appraisal I am doing.

Thanks

Wayne Tomlinson

 

[dobie]

The lender, who would have taken this appraisal written on the back of a napkin two years ago, now wants proof beyond any shadow of a doubt, that this property is worth all of $165,000.

How do you know this? Just wondering.

Were some of your prior appraisals the "napkin" variety?