Reconsideration of value declined

[J Grant]

Back when you bought your townhome, how much less did you pay for it compared to single-family homes in the area that sold at the time?

Why did you choose the attached townhome rather than a single-family in the same area?

Normally, appraisers are not supposed to use short-term rentals for residential property; they use annual or long-term month-to-month leases for rental income analysis. The fact that there is an entertainment district, and some might rent short-term, would increase the value somewhat, which is baked into the sale prices.

 

[skc26]

If it is the Arlington Entertainment District, then town home sales from that area should have been considered. Although, there would need to be actual attached town home sales proof that they sell for more in that area. We would have to support adjustments with comparable sales of attached town homes. Did you consider that the market has been down in the past year in most areas? Also, the appeal of short term rentals has lost its luster over the past couple of years.

Thank you for your response.
Yes, the location is accurate—I’ve owned the property for quite some time. Both short-term rentals and sales are in high demand due to very limited inventory.
However, the report did not include the necessary adjustment supported by comparable sales.

 

[skc26]

Back when you bought your townhome, how much less did you pay for it compared to single-family homes in the area that sold at the time?

Why did you choose the attached townhome rather than a single-family in the same area?

Normally, appraisers are not supposed to use short-term rentals for residential property; they use annual or long-term month-to-month leases for rental income analysis. The fact that there is an entertainment district, and some might rent short-term, would increase the value somewhat, which is baked into the sale prices.

Thank you for your input.
I did not pay less and did pay a premium to get the property Price supported both SFH and my property during buying time

 

[skc26]

Attached townhouses do not get comped to single family detached dwellings.

Classified by who? If its a townhouse, its a townhouse in appraisal world.

CAD / County tax / Survey - Legal entity

 

[Zoe]

Your best bet is probably change lenders and take your comps you have of townhomes to the next lender. I wonder too if you could ask your current lender to order a second appraisal from a different appraiser.

 

[Zoe]

Another question. Was the appraiser local? You got a copy of the report. Is their address local?

 

[J Grant]

As an appraiser, I normally try to use a comp from the same location influence area, even if an older sale or one where I need to adjust for it being an SFR or a condo.

 

[skc26]

Another question. Was the appraiser local? You got a copy of the report. Is their address local?

Appraiser’s address is local and is about 20 miles away

 

[Zoe]

Appraiser’s address is local and is about 20 miles away

Okay, and you took or emailed these comparables you have to your lender to give the appraiser, correct?

I have this comparable and this comparable. These comparables are very similar to my property for these reasons. Condos and single family detached comparables are not great comparables.

 

[Terrel L. Shields]

where short-term rentals are legally permitted, which creates a unique buyer pool and limited inventory

STR's may impact the market but there are restrictions from FNMA about using them. ROVs are a one-shot Freddy and there are restrictions and you have not said if it is FNMA, FHA, VA, or where the financing is going to come from.

For my comp analysis, I included a mix of townhomes, condos, and single-family homes to reflect that demand.

It's the appraisers choice as to style and not the borrowers. Why no sales were used from the area should be justified again, you are left to complain to the state board but that's not going to change the loan or the appraisal.