THIS IS WHAT A REVIEWER /UNDERWRITER OF A RECENT APPRAISAL WROTE:
"Unacceptable Appraisal. Report fails to address declining market conditions in Miami and excessive number of similar units in the building that are listed at asking prices below the appraised value. The subject is located in a four year old high rise condominium project that was converted to condominiums from rental apartments in 2005. There are 608 total units of which the developer still owns 106 units. 72 units were sold to investors according to the appraiser. A Realtor.com search of the area found 8 current listings of 2 bedroom, 2 bath units in the project listed at between $360,000 and $389,988. I spoke to two brokers whose office have listings in the condominium. Josie at Chipmonk Realty (786-zzz-XXXX) reported a large and growing oversupply of condominium listing in Miami and a large concentration of foreign (mainly Venezuelan) in this condominium project. They purchased units at lower prices with the intent of flipping the properties at a profit. The market has deteriorated and they cannot rent them at a profit or sell them at a profit so they are being dumped on the market at ever declining asking prices. In addition I spoke to Josie at My Realty (305-zzz-zzz) who reported a high level of Equity Stripping schemes being done in this condominium project. 3 of the four sales are developer sales and cannot be trusted considering the distressed market conditions. We cannot know when these units went under contract. It was probably when the prices were higher. Comparable #4 is a resale according to the appraiser but it could not be verified on Realquest and it is located on the 7th floor. The subject is a less desirable first floor unit with no views. See Realtor.com listing data uploaded in CMS."
NAMES AND NUMBERS HAVE BEEN CHANGED TO PROTECT THE GUILTY. I'M PRETTY MUCH OK ABOUT ANSWERING EVERYTHING EXCEPT THE BIT ABOUT THE MANY VENZUELANS PURCHASING IN THIS PROJECT AND FLIPPING. TECHNICALLY, THE NUT WHO WROTE THE ABOVE IS QUOTING ANOTHER NUT BUT WHY EVEN REPEAT SUCH A THING? I WOULD LIKE TO HEAR SOME OPINIONS ON HOW TO ANSWER THIS. ANY USPAP QUOTES OR FAIRHOUSING VERBAGE / SOURCES WOULD HELP.
"Unacceptable Appraisal. Report fails to address declining market conditions in Miami and excessive number of similar units in the building that are listed at asking prices below the appraised value. The subject is located in a four year old high rise condominium project that was converted to condominiums from rental apartments in 2005. There are 608 total units of which the developer still owns 106 units. 72 units were sold to investors according to the appraiser. A Realtor.com search of the area found 8 current listings of 2 bedroom, 2 bath units in the project listed at between $360,000 and $389,988. I spoke to two brokers whose office have listings in the condominium. Josie at Chipmonk Realty (786-zzz-XXXX) reported a large and growing oversupply of condominium listing in Miami and a large concentration of foreign (mainly Venezuelan) in this condominium project. They purchased units at lower prices with the intent of flipping the properties at a profit. The market has deteriorated and they cannot rent them at a profit or sell them at a profit so they are being dumped on the market at ever declining asking prices. In addition I spoke to Josie at My Realty (305-zzz-zzz) who reported a high level of Equity Stripping schemes being done in this condominium project. 3 of the four sales are developer sales and cannot be trusted considering the distressed market conditions. We cannot know when these units went under contract. It was probably when the prices were higher. Comparable #4 is a resale according to the appraiser but it could not be verified on Realquest and it is located on the 7th floor. The subject is a less desirable first floor unit with no views. See Realtor.com listing data uploaded in CMS."
NAMES AND NUMBERS HAVE BEEN CHANGED TO PROTECT THE GUILTY. I'M PRETTY MUCH OK ABOUT ANSWERING EVERYTHING EXCEPT THE BIT ABOUT THE MANY VENZUELANS PURCHASING IN THIS PROJECT AND FLIPPING. TECHNICALLY, THE NUT WHO WROTE THE ABOVE IS QUOTING ANOTHER NUT BUT WHY EVEN REPEAT SUCH A THING? I WOULD LIKE TO HEAR SOME OPINIONS ON HOW TO ANSWER THIS. ANY USPAP QUOTES OR FAIRHOUSING VERBAGE / SOURCES WOULD HELP.