imchrisporter
Freshman Member
- Joined
- Sep 30, 2008
- Professional Status
- Appraiser Trainee
- State
- Utah
I recently did an appraisal of a custom home with incredible views that I valued at $450,000. I had an underwriter condition to "explain the discrepancy between the public records which report 4,500 SF with 5 bed/2 ba, and the appraisal report of 2,500 SF and 2 bed/2 ba." After reviewing the public records, I realized the UW was comparing TOTAL square feet (main level and basement combined) with my GLA. I sent a reply e-mail that there really was no discrepancy, and did they really want me to address that in the report. They did, so I politely explained the difference between total SF and GLA, and pointed out how they could figure total SF from the report. Next, the report was sent for review. The review appraiser came back with a value $70,000 less than my report. The comparables they used were all within one mile of the subject and are as follows: (Comp #1) a sale that occured more than a month after the effective date and signed date of the appraisal. The comment was, "Sale 1 closed after the date of the appraisal but was probably listed or under contract of that date." In reality, at the time of the appraisal it was an active listing for $449,000 (Comp #2) sold for more than the list price at $370,000. It was a very distressed pre-foreclosure. There were multiple offers on the property. I did not use this sale in my original report because it was a distressed sale, and there were other sales that were comparable that were arms-length transactions, although some of them were further than one mile away. (Comp #3) is an active listing in a far inferior neighborhood and is inferior in both quality and condition. It is reported in the review to be .5 miles from the subject, but in reality it is 2.0 miles from the subject. (Comp #4) is an active listing on the same street as the subject. It is a two-story, while the subject is a rambler. It is also an REO. The value in the review is $380,000 which is the current listing, while the listing at the time of the appraisal was $525,000. Although it is on the same street, it is on the other side of the street and does not have views.
How do I effectively refute the review without getting into trouble or alienting my client?
How do I effectively refute the review without getting into trouble or alienting my client?