Warren Sumner
Sophomore Member
- Joined
- Jan 19, 2002
- Professional Status
- Certified Residential Appraiser
- State
- North Carolina
Appraising a custom townhome with all the appointments; hardwoods, custom cabinetry the whole nine. Rests in a premier townhome development in the cityof Durham, NC. There are new construction comps in the development and I've had to go outside of it to pull resales.
Anyway, the subject closed for $196K through MLS two days before the appraisal date, and the purchaser already wants to refi. I've applied adjustments that I consider reasonable and I can only justify $191K. Close obviously, but far enough away where I'd have to really push or use adjustment factors that I'm not really comfortable with to "pull it in" for sales price. I have one pending sale in the 'hood that may justify the sales price, but it isn't scheduled to close for two weeks and who knows at exactly what price. Conventional wisdom says, "no brainer, appraise it for $191 and go home" but if the pending closes for 196, conventional wisdom ain't gonna save me from irate clients and I don't want to appear to be an idiot. Arguments could be made that "hey, someone was willing to pay 196...it's gotta be worth it."
HELLLLP!!!! WHat would you do???
Anyway, the subject closed for $196K through MLS two days before the appraisal date, and the purchaser already wants to refi. I've applied adjustments that I consider reasonable and I can only justify $191K. Close obviously, but far enough away where I'd have to really push or use adjustment factors that I'm not really comfortable with to "pull it in" for sales price. I have one pending sale in the 'hood that may justify the sales price, but it isn't scheduled to close for two weeks and who knows at exactly what price. Conventional wisdom says, "no brainer, appraise it for $191 and go home" but if the pending closes for 196, conventional wisdom ain't gonna save me from irate clients and I don't want to appear to be an idiot. Arguments could be made that "hey, someone was willing to pay 196...it's gotta be worth it."
HELLLLP!!!! WHat would you do???