New Construction Purchase

[Metroappr]

Market stable to increasing.
Project has been received well (you can find out how many pre-sold units they had. If they had a lot, that demonstrates good market acceptance).
The subject will be the highest sold unit within the development; for every dynamic, there is one sale that would be higher or at the top vs. all others.
The upgrades represent 1.5% of the total value.
The Value at $X is credibly supported.​

Sounds like the above is the fundamental components of your reconciliation. How you write them in your own words is best left to you.


Not to be picky, but using data from competing markets (another city) is always an option; it may not be a satisfactory option depending on the fee you are being paid or the turn-time you are trying to meet. It wouldn't take long to do, but (as I said) would kick it up into a complex-assignment as far as I'm concerned.

In any event, from what you describe and since you believe the value is supported, I think you have enough to support that by logic and reasoning.

Good luck!

Thank you. Using a surrounding city is not an option as they have lack of similar condo developments. Not an option means lack of truly effective comparable data. I am going to come in at purchase price as the upgrades are reasonable and are a low factor of total price (1.5%). I really appreciate your input.

 

[J Grant]

Plenty of BS around here; on that I agree!

Well that is true, but at what point does rounding up significant $ amounts becomes number hitting? Why not round down lol...

 

[J Grant]

Thank you. Using a surrounding city is not an option as they have lack of similar condo developments. Not an option means lack of truly effective comparable data. I am going to come in at purchase price as the upgrades are reasonable and are a low factor of total price (1.5%). I really appreciate your input.

Hitting SC prices in such a high % of transactions is the reason given per TMD, and others, for entities finding appraisers irrelevant Fannie/other entities deciding not to use them. FWIW

 

[hastalavista]

Using data from other cities might or might not be relevant, of course one should check it but so far OP seems to have reason not to - though Fannie wants a sale outside condo, where will it come from ?

I said competing markets. Data from competing markets is always relevant.

 

[hastalavista]

Well that is true, but at what point does rounding up significant $ amounts becomes number hitting?

That's the easiest question to answer that I believe you've ever asked: The answer is, to the point that the appraiser believes is reasonable and credible.
That's why, at the end of the day, we employ our judgment.

Why not round down lol...

Who said one couldn't?
I said I'd be inclined to round my value.

 

[Metroappr]

Market stable to increasing.
Project has been received well (you can find out how many pre-sold units they had. If they had a lot, that demonstrates good market acceptance).
The subject will be the highest sold unit within the development; for every dynamic, there is one sale that would be higher or at the top vs. all others.
The upgrades represent 1.5% of the total value.
The Value at $X is credibly supported.​

Sounds like the above is the fundamental components of your reconciliation. How you write them in your own words is best left to you.


Not to be picky, but using data from competing markets (another city) is always an option; it may not be a satisfactory option depending on the fee you are being paid or the turn-time you are trying to meet. It wouldn't take long to do, but (as I said) would kick it up into a complex-assignment as far as I'm concerned.

In any event, from what you describe and since you believe the value is supported, I think you have enough to support that by logic and reasoning.

Good luck!

Thank you. Using a surrounding city is not an option as they have lack of similar condo developments. Not an option means lack of truly effective comparable data. I am going to come in at purchase price as the upgrades are reasonable and are a low factor of total price (1.5%). I really appreciate your input.

Hitting SC prices in such a high % of transactions is the reason given per TMD, and others, for entities finding appraisers irrelevant Fannie/other entities deciding not to use them. FWIW

In some cases I would agree we are irrelevant to the transaction. We are all going to be out of a job at some point given death, technology innovation or stupidity. I prefer it be winning the lotto

 

[hastalavista]

In some cases I would agree we are irrelevant to the transaction.

I have a nuanced view of this (which I'll opine, knowing it takes your thread off-course....)

Collateral valuation is always relevant to the transaction when part of the loan-equation is based on a loan-to-value calculation (and we are talking mortgage finance transactions).
Up to recently, appraisals (and by extension, appraisers) were the go-to source to obtain the collateral value.
Recently (and going forward), we are not the go-to source; alternatives are available and becoming more acceptable. And that acceptance of alternatives appears to be accelerating.

So there are acceptable alternatives for an appraisal in the valuation of the collateral.
I agree with how you worded your comment... "In some cases... we are irrelevant to the transaction." If an acceptable alternative exists and it is deemed superior (for whatever reason; cost, speed, etc.) vs. what we provide, then the appraiser becomes irrelevant to that transaction because an appraisal is not necessary to address the collateral value question for that specific loan transaction; i.e., the "some cases" you reference.

The market is shifting. We can try to fight that shift or adapt to that shift (and, sometimes, the answer is to fight part of the shift and adapt to what remains). Not necessarily pleasant and sometimes scary, but it is what it is.

I prefer it be winning the lotto

You and me both, brother! (or, sister, as the case may be! )

 

[Metroappr]

I have a nuanced view of this (which I'll opine, knowing it takes your thread off-course....)

Collateral valuation is always relevant to the transaction when part of the loan-equation is based on a loan-to-value calculation (and we are talking mortgage finance transactions).
Up to recently, appraisals (and by extension, appraisers) were the go-to source to obtain the collateral value.
Recently (and going forward), we are not the go-to source; alternatives are available and becoming more acceptable. And that acceptance of alternatives appears to be accelerating.

So there are acceptable alternatives for an appraisal in the valuation of the collateral.
I agree with how you worded your comment... "In some cases... we are irrelevant to the transaction." If an acceptable alternative exists and it is deemed superior (for whatever reason; cost, speed, etc.) vs. what we provide, then the appraiser becomes irrelevant to that transaction because an appraisal is not necessary to address the collateral value question for that specific loan transaction; i.e., the "some cases" you reference.

The market is shifting. We can try to fight that shift or adapt to that shift (and, sometimes, the answer is to fight part of the shift and adapt to what remains). Not necessarily pleasant and sometimes scary, but it is what it is.


You and me both, brother! (or, sister, as the case may be! )

I completely agree with your assessment! In addition to winning the lottery, I am trying my hand at crypto currency . This too my have lower odds than the lottery

 

[residentialguy]

One buyer is not the market, it is one buyer.

stop making up nonsense to try to support your bias. I never said that. If you can't say truthful the things that back you up, then it's time just stop posting... unless it's to post "you're right, Res... my bad"

 

[J Grant]

Getting back to the appraisal, what are the prices of the sold comp used in report from the units that sold in subject building, and what are the differences among any those comps and the and the subject unit ( besides the upgrades ), aka differences such as floor height, view or sf.

A lot goes into deciding where to value these close call appraisals- without knowing more specifics about the comps it is hard to go further with the discussion.