Outlier Comp - to use or not to use?

[J Grant]

You have an similar match outlier sale. Obviously higher sale price is always better than lower, to not gum up the value. That sale is too obvious to overlook. Comps #4,5,6 are secondary comps which the underwriters may look at, but not care about. This sale is being used for support However, insufficient data to determine if this is a new trend. Put it in now, easy now, more work later if it comes up.

?? To not gum up the value?

MV is our goal, which is the most probable price -assuming a transaction with parties and terms in the MV definition
. if there is a reason intrinsic to the property, why it is the highest price the appraisal can support it. Otherwise, we can't, unless we want to be a number hitter -the client might love that today, but a UW or reviewer might not love it a year from now -

 

[Tom D]

?? To not gum up the value?

J Grant, you would put the low outlier, same st, sale in your report to help support your value. That's what i mean by gum up. Well, why did the appraiser put this sale in his report. The higher outlier sale is less gummy, than a low outlier sale on the street.

I would love to write a book one day, although no money to be made. The phycology in an appraisal report presentation. Mv is your goal, but your presentation of it makes you look either stupid or brilliant.

 

[J Grant]

J Grant, you would put the low outlier, same st, sale in your report to help support your value. That's what i mean by gum up. Well, why did the appraiser put this sale in his report. The higher outlier sale is less gummy, than a low outlier sale on the street.

I would love to write a book one day, although no money to be made. The phycology in an appraisal report presentation. Mv is your goal, but your presentation of it makes you look either stupid or brilliant.

Good points - imo the appraiser should be invisble, and the data and comments prove the MV as credible and supported -

 

[shrubberyvaluation]

Working on an appraisal of a site (single family) and most of the comps are within a fairly tight range. There is one outlier that sold for considerably more than any of the others. In addition, the outlier was purchased by the same builder that is purchasing the site I am currently appraising (and for a similar price). This outlier is literally across the street and just closed 6 weeks ago, but as I can't find any other sales that would support that value I don't know if I should include it at all, let alone give it the substantial weight I otherwise would for a comp that is nearly identical to the subject. I assume some of you have had a similar experience - any thoughts? Thanks in advance.

I would try to interview people in the transaction, see if you can get some information. Also look at DOM and such.

 

[shrubberyvaluation]

They're good - all within the last 9 months, located within a few blocks, similar in terms of dimensions and characteristics

Prices rising?

 

[Elliott]

One sale does not a market make. Why did the builder pay more for the outlier? I once had a builder pay $75,000 more for a $600,000 house. When I got the contract it included a Corvette, so they were trying to 'finance' the car along along with the house. Silly stuff.

 

[RustyTapeMeasure]

Working on an appraisal of a site (single family) and most of the comps are within a fairly tight range. There is one outlier that sold for considerably more than any of the others. In addition, the outlier was purchased by the same builder that is purchasing the site I am currently appraising (and for a similar price). This outlier is literally across the street and just closed 6 weeks ago, but as I can't find any other sales that would support that value I don't know if I should include it at all, let alone give it the substantial weight I otherwise would for a comp that is nearly identical to the subject. I assume some of you have had a similar experience - any thoughts? Thanks in advance.

If not worthy in your opinion to be put on the grid then by all means place in comment section, note it, describe it, all details of closing price, DOM, LP, etc and your breakdown on it being a similar property but not similar in closing market reaction ???