Reconsideration of value declined

[Zoe]

Okay, so you don't live there as your primary residence. I missed that part. I didn't realize you do short term rentals on it. Lender may not be able to sell the loan and have to keep the loan in their loan portfolio.

 

[skc26]

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.

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.

Thank you for your input. I agree that the selection of comps is ultimately the appraiser’s responsibility, not mine. However, I am surprised that no comparable properties from within the immediate vicinity were used or addressed in the report. I will see what I can do regarding the complaint to state board

 

[Terrel L. Shields]

I am surprised that no comparable properties from within the immediate vicinity were used or addressed in the report.

Most forms will state they use the most recent, similar and PROXIMATE sales. That's your argument and it is valid. As for filing a complaint, it won't change the appraisal.

 

[skc26]

Most forms will state they use the most recent, similar and PROXIMATE sales. That's your argument and it is valid. As for filing a complaint, it won't change the appraisal.

Got it, thank you

 

[Tim Hicks (Texas)]

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.

Okay, I just ran MLS sales and within two minutes found two townhome sales that closed in February and March in the $230-250 per foot range, but these are 2100 and 2600 sf town homes built in 2023. Without knowing specifics about your property it is hard to judge somebody else's appraisal. These two sales were three story town homes with roof top decks. I don't know if these town homes are superior to yours or not.

I would suggest changing lenders and getting a new appraisal. But, without knowing much about your property it does not guarantee the other appraisal is not correct. As far as entertainment district and short term rentals go, those are dicey subject's. That is why it is best to use sales from the immediate area. That is why your agent should have provided town home sales from the immediate area and never mentioned 1960's single family homes.

If you use a lender that uses AMCs it is very possible they may use the cheapest appraiser they can find which may mean a good appraiser or it may not. Stick with local banks and avoid the Rocket Mortgages of the world.

 

[Zoe]

Okay, I just ran MLS sales and within two minutes found two townhome sales that closed in February and March in the $230-250 per foot range, but these are 2100 and 2600 sf town homes built in 2023. Without knowing specifics about your property it is hard to judge somebody else's appraisal. These two sales were three story town homes with roof top decks. I don't know if these town homes are superior to yours or not.

I would suggest changing lenders and getting a new appraisal. But, without knowing much about your property it does not guarantee the other appraisal is not correct. As far as entertainment district and short term rentals go, those are dicey subject's. That is why it is best to use sales from the immediate area. That is why your agent should have provided town home sales from the immediate area and never mentioned 1960's single family homes.

If you use a lender that uses AMCs it is very possible they may use the cheapest appraiser they can find which may mean a good appraiser or it may not. Stick with local banks and avoid the Rocket Mortgages of the world.

Those would be good comparables. HOA or not really doesn't make a ton of difference if very close to subject and similar external amenities in a resort area.

On a short term rental, many people may just want to stay there for what is around the subject vs the subject.

 

[Tim Hicks (Texas)]

Is a 55% occupancy rate high demand? Co-pilot seems to think so.