Frederick R. Ruffell
Senior Member
- Joined
- Jan 21, 2002
- Professional Status
- Certified General Appraiser
- State
- California
This has to be in the top 3 most difficult assignments I have had to date, the other 2 were early in the career and still learning the ropes.
Subject is a 2 on 1 spitting distance from Mexico in San Ysidro. In all of San Ysidro there have been a total of 20 two unit properties sold since 1984. Because this is a 2 on 1 and NOT a Duplex I know that it will compete with SFR properties in the current market. I know it will sell for $300K plus...But I got nothing, and I mean Nothing, for the Sales approach comparables. I did grid out 3 sales and the adjustments exceeded 40%, both ways. Income approach predicated on projected rents and the GRM of the comps used in the sales approach produced a W I D E range, however the average was close to the value I know to be correct. Cost approach... well you know, not really applicable on a 40 year old property but I did my best. Resorted to surveying the agents and they confirmed my conviction.
I guess this is the RISK SEEKER part of the biz. It is a good client and I have talked with the chief appraiser about it and am not too concerned about the value or the report as I know I have covered all the comps available. What would you have done differently? Are we always required to complete the report even if our "opinion" is not supported on paper within the guidelines requested by the client (i.e. FNMA)?
Subject is a 2 on 1 spitting distance from Mexico in San Ysidro. In all of San Ysidro there have been a total of 20 two unit properties sold since 1984. Because this is a 2 on 1 and NOT a Duplex I know that it will compete with SFR properties in the current market. I know it will sell for $300K plus...But I got nothing, and I mean Nothing, for the Sales approach comparables. I did grid out 3 sales and the adjustments exceeded 40%, both ways. Income approach predicated on projected rents and the GRM of the comps used in the sales approach produced a W I D E range, however the average was close to the value I know to be correct. Cost approach... well you know, not really applicable on a 40 year old property but I did my best. Resorted to surveying the agents and they confirmed my conviction.
I guess this is the RISK SEEKER part of the biz. It is a good client and I have talked with the chief appraiser about it and am not too concerned about the value or the report as I know I have covered all the comps available. What would you have done differently? Are we always required to complete the report even if our "opinion" is not supported on paper within the guidelines requested by the client (i.e. FNMA)?