Need Help with ANSI/Below grade, hold the snark please!

[djd09]

dont worry about ansi...just do it the way the market calculates it

 

[Elliott]

I paid $900 for a refi- appraisal a few years ago and the appraiser made the statement below. Perhaps you could modify it.

"Due to a lack of appropriate

data the cost approach lacks credibility to the degree that it could be a liability to the appraiser, and/or misleading to the lender/client and

by extension the borrower and investor therefore to include the cost approach could be considered a USPAP violation."

 

[Dublin ohio]

I think J's answer is a good one. "If" a thorough search was conducted expanding the parameters of time and distance to decipher that the subject truly is an anomaly. Because if someone follows, and does find that elusive sale.... the cream will rise to the top.

I agree "if". But J's answer focuses strictly on the offers for the subject and saying that the fact that there are multiple offers for the subject shows that no negative adjustment is needed. Doesn't provide the answer to "what is the difference between the subject and similar sized homes in the area without the functional problem". Unless you can justify the offers on the subject demonstrate that difference. Remember the OP said the subject is the only LIVABLE home in the neighborhood below $200K. Which would indicate to me that other LIVABLE homes in the neighborhood sell for more than $200K

 

[sputnam]

Doing an appraisal for a conventional purchase. SF home, 672 SF built in 1900. The only kitchen and bath are below grade in the basement. No, I do not have any comps going back 2 years with this situation. Due to FNMA/ANSI I cannot include those rooms in room count or GLA. Soooo, my grid shows 4/2/0 for the subject room count.
The kitchen and bath are 350 sf total of the 672 sf basement. I dont want to make adjustments for the comps baths on the room count line and also a functional utility adjustment for the issue with the kitchen and bath in the basement as this would be "double dipping". I am basing my functional adjustment on ???? Since I have no matched pairs to formulate an adjustment. Am I over thinking this??

1- If it's not for GSE, you do not have to use ANSI.
2- If ANSI is required for the assignment, then follow the rules and explain.
3- If adjustments are indicated by analysis of market data, make them.
4- Yes, make sure you aren't double dipping. You do that by making one adjustment at a time and for the physical adjustments... Adjust as if the subject and the comparable are identical in every way... except for the item you are adjusting for.

 

[Tom D]

my answer is simple. if you have similar comps do it, although do you public records GLA go by ansi standards. if you do not have 1 similar comp, i say fall on the sword, give it back. it will be less painful than the stips you get, or the innocent mistakes you may make. if so hard, what is the purpose of doing it, an existential bad ending. why do some jeopardize the license for a small fee.
i have a feeling that there are no such similar comps. if there are, they all have the same functional utility and ansi nonsense. now, you issue is how do i adjust for the normal comps. another bear trap to put your foot into. i'm not a brave appraiser, but long surviving. also, depends on the client. i have long time non AMC clients that won't turn me in, so i might attempt it.

just did one ansi with a 400 sq ft atrium, and public records GLA is not ansi, and neither is the MLS ansi. so a lot of comp picture looking, and guessing, to determine comp ansi GLA, but from one of my best client.

 

[J Grant]

I agree "if". But J's answer focuses strictly on the offers for the subject and saying that the fact that there are multiple offers for the subject shows that no negative adjustment is needed. Doesn't provide the answer to "what is the difference between the subject and similar sized homes in the area without the functional problem". Unless you can justify the offers on the subject demonstrate that difference. Remember the OP said the subject is the only LIVABLE home in the neighborhood below $200K. Which would indicate to me that other LIVABLE homes in the neighborhood sell for more than $200K

It's up to the OP to determine why other homes sold for more and subjects sold for less if they use superior comps. I believe I indicated that in a prior post here. I can't do the appraisal for them in that regard, and neither can anyone else here. The present offers for the subject indicate that for the typically motivated buyers for this property, the utility of the bath and kitchen being below grade is market accepted by them. That is a critical factor in appraising an oddball. I assume it had short DOM as well. That sets it apart from oddball houses that meet market resistance.

Everything in an appraisal is connected. The question at the bottom of page one asks, does the subject generally conform to the neighborhood? The answer is NO,- then explain- Though it is a non-conforming property, it is market accepted as evidenced by 3 offers and one above list price offer and short DOM

The second addresses predominant price - the subject is below the predominant price, but is it an under improvement ? It seems like it, but idk if it is market-accepted at a lower price tier and not if this market is accepted with demand in evidence.

We can carelessly neglect to answer these questions relevant to a non conforming subject if we get used to checking boxes in a generic way -which where appraisers get tripped up on these oddball assignments.

 

[TerryRohrer]

The present offers for the subject indicate that for the typically motivated buyers for this property, the utility of the bath and kitchen being below grade is market accepted by them.

By that logic, every property that is owned passes the test. Not much of a jump to concluding that they offerred $x for the property so that is the value.

 

[J Grant]

By that logic, every property that is owned passes the test. Not much of a jump to concluding that they offerred $x for the property so that is the value.

Good lords, do you lie in wait like a snake waiting to pounce? Seems like it. BTW I believe I have a higher rate of valuing houses below SC when warranted than most-

I addressed this above in a post, and relying on pending offers and contracts as the only test was not my advice - - I was helping the OP get perspective on a specified question. You recently attacked other posters on another thread, so it is not just me. But this kind of spiteful nonsense is why people stop posting and why they stop giving advice to appraisers who are asking for help .
You offer good appraisal guidance when you are in mind to do that - idk where this other part comes from-

 

[TerryRohrer]

You recently attacked other posters on another thread, so it is not just me.

How idiotic.

 

[Mark K]

Functional issues tend to vanish like a frt in a windstorm when you are appraising at the very bottom of the value range; these buyers are not that particular as evidenced by the multiple offers.

I'd note the atypical floor plan in the report and reconcile towards the lower end of the adjusted range.

On another note, I can't believe that this forum censors the word "f-a-r-t".