PushinValue
Member
- Joined
- Nov 28, 2011
- Professional Status
- Certified Residential Appraiser
- State
- California
Say you have a steady 24% increase over the last year.
Condo complex with only one model.
12 sales a year
Three comps 1 closed on the effective date 100k 2.sold one month ago for 98k 3. Sold 3 months ago 96k 1pending at 102k
No other similar complexes
All identical condition with no concessions
No other active listings
Based on this information, would the most likely sales price of the subject be 102k or possibly even 103k?
I ran into a similar situation with 2 appraisals at the same time (each a different model within a gated community).
Most appraisers say you cannot come in above the highest sale... but wouldn’t the most probable sale price be higher than the last?
This is one of the most common questions I get. Usually my response is - appraisers do one of two things 1. Stick you with the highest most recent sale or 2. Use some other less similar “comps” that are really not similar, but expand the range or use other slightly less similar “comps” and fudge the adjustments to come in at the supported pending prices...
I tried to make the situation as simple as possible to boil down to my questions. It is almost never that simple. But the base question remains. Thoughts?
Condo complex with only one model.
12 sales a year
Three comps 1 closed on the effective date 100k 2.sold one month ago for 98k 3. Sold 3 months ago 96k 1pending at 102k
No other similar complexes
All identical condition with no concessions
No other active listings
Based on this information, would the most likely sales price of the subject be 102k or possibly even 103k?
I ran into a similar situation with 2 appraisals at the same time (each a different model within a gated community).
Most appraisers say you cannot come in above the highest sale... but wouldn’t the most probable sale price be higher than the last?
This is one of the most common questions I get. Usually my response is - appraisers do one of two things 1. Stick you with the highest most recent sale or 2. Use some other less similar “comps” that are really not similar, but expand the range or use other slightly less similar “comps” and fudge the adjustments to come in at the supported pending prices...
I tried to make the situation as simple as possible to boil down to my questions. It is almost never that simple. But the base question remains. Thoughts?