• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

New Appraisal Problem 2-4

Status
Not open for further replies.

Charlotte Dixon

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
I'm looking for a bit of direction here on, what I would call, a complex assignment. It's a Small Residential Income Property. I've done many reports using that type of form, but this one doesn't seem to fit.

6.4 Acres in unincorporated area of the County
Unit 1 Ranch home, 2 bedrms. 1 bath, about 1200 sf, Rent $500/mo
Unit 2 Bungalow, 1 bedrm. 1 bath, about 800 sf, pier found. Rent $135/mo
Unit 3 2 sty, 3 bedrms. 1 bath, about 1700 sf, partial bsmt. Rent $500/mo
2 car garage
Carport
3 septic systems, 4 wells
Everything in poor condition
Complies to Zoning requirements
All rented
Small local bank financing, thank goodness

I'm struggling along with this form, but not making much headway. How would you handle this?
 

Charlotte Dixon

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
Problems:

Subject: difficulty in fitting each individual house on grid (3 houses all different in style)
Difficulty in adjusting for amenities (subject houses are junk on 6.4 acres)
Only comps are all nice tidy 2 story houses, each with 3 units, in the city

I admire your possitive thinking, Jeff :)
Yes, no comps with 3 individual houses on a larger parcel of land, or anything similar by the wildest stretch of imagination :(
 

jeff samolinski

Senior Member
Joined
Apr 18, 2003
I see said the blind man as he picked up his hammer and saw!!!

Only idea I have is to use addendum to describe the subject's units then label them as a,b,c or similar label. Then use label for grid area. Good luck with the underwriter being able to understand. Narrative report would be best to do. Appraisal without good comps available is only as good as the data available to you. Gotta just do your best and hope lender is not anal enough to demand 3 sales that don't exceed adjustment "guidelines" Remember to explain they are guidelines not requirements. Recommend you let them know that its not going to be a pretty looking report and might have to be portfolio loan cause fannie will no like!!! Good luck hope your charging a bundle.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Narrative man here! Forgit the forms!!!!
This one would be much easier and quicker on a short restricted narrative. Use a qualitative market analysis (comp is inferior/superior... no adjustments) since your support data is poor at best. Do your income approach. Cost applicable? Sounds like maybe not since there is so much depreciation, and that would be very subjective call anyway.
 

Austin

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Virginia
No problem: Send the request to an appraiser and let he/she do a summary narrative report. What does fitting an appraisal to a form have to do with appraising and report writing? The answer is nothing. There are appraisers experts and formfill out experts. Forms are all a part of the FNMA Semi-automtic valuation model. Deviate from the alogrithm and go to jail. Who ask you to think any way? If you people knew anything you would be working for FNMA like us, or so they think. Do it like everybody else does it, just rig it some way. If the deal works nobody will ever know. Besides, haven't you heard-values are increasing 10% per year so how can you go wrong?
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
M Legget and Austin are correct. Do a narrative. Also, becareful in the approaches. I like to try to find like properties, that is detached units vs using other 3 unit attached buildings.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
I agree with a narrative, but I would do it as a combo with a 1004, not a SRI, just to simplify the process. Take the 1004 and do the first page, with extensive narrative comments as to the additional improvements. Then take an EXCEL program to do the grid, commenting on Word. Then attach the appropriate photo pages, etc. You can print the thing up in units, collate it, and mail it.

Roger
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
Could it be that what you have is NOT a multi family property, in other words a HB&U issue. Maybe what this property should be is a "Gentlemans Farm" or a horse property, or an avocado orchard, or something else that there are comps for in the area?????? ;)
 
W

walt kirk

Guest
Charlotte,
I did an appraisal of a property somewhat like your subject two weeks ago. It's located just across the river from you in Cumberland County, N.J.

My subject was an old single family converted (poorly) to duplex and a cottage (converted shed). All were rented. I struggled with the form until I considered both structures as one complex. After explaining the layout and adding two sketches, four extra pictures and a small addendum explaining the situation the report wasn't hard to complete.

I thought that this property was a real piece of junk and I had to go to two towns, Bridgeton and Cedarville, to find comps but the report came out fine.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks