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REVIEW New Constr, 3000 sft(2 leve) round house on 14 acres

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Carnivore

Thread Starter
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Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
The house is in a Mobile home Subdivision in the western part of our county. The land is not worth much(maybe 60-70K.

The plans and specs according to the Trainee and the Appraisers trainee mill supervisor are good quality.

I donot know of any round house comps in my county, the county to the north and the county tothe west.

The dimwit trainee with his Supervisors stamp of approval used one NEW Transitional two story home, 1.7 acre and one 3 year old two story traditional on .86 acre from My neck of the woods. My area is the primest residential market area of the county. We are 15 miles from the subject.
The third comp he used a 8 year old two story transitional home on 1.8 acre from are 2nd best residential area(north east portion of county). Its about 15 miles from subject also.

TO Bob Ipock: S/D's are Southfork(area 6), Stonehaven(area 7) and 'The Mountain' area 7.
p.s. Bob, This guy has a unusual first name and he belongs to Gaston CC.
You know who he is.


OK fellas what do I do. They didn't hardly say anything. All one liners.

"its in a mobile home S/D" "The comps are from similar market segments"

No mention of external obs. No mention of over improvement. This list could go on and on.


They said the House is worth:

Cost $282,000
Market $259,000


I think I am in over my head.
 
Joined
Jan 16, 2002
Professional Status
General Public
State
North Carolina
Andrew

The appraisal of the subject, as would the review, would certainly be considered a complex assignment. Complex assignments, in my judgement, and I think yours, require more than generic one liners and the standard sales grids and cost data you would find on the URAR. This would be particularly true if there were no indications of verbal communications discussing the appraisal between the appraiser and client.

I would phrase my review in the aforementioned vein; that the report does not adequately convey sufficient information for the reviewer to ascertain the appraiser's thought process for this complex property. Point out that, other than generic statement seen for non-complex assignments, the basis for the comparisons is not made, no discussion of what most would considered to be functional issues, and no indication why the appraiser would not think that such factors were not present.

I would conclude that your remarks do not mean that the appraisers work product is wrong, just that more explanation is warranted before you can provide a professional appraisal review of the development of the appraisal under Std 1. Then ask for additional written material, or a review of the workfile and/or discussion with the appraisers. Alternatively, you can develop an alternative opinion, which would essentially be an entire new appraisal. Be sure you also discuss with your client the need for additional funds to complete this complex piece of work.

Regards

Tom Hildebrandt GAA
 

Chris Harrison

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Utah
Andrew,
I agree with Tom that the subject is unique and calls for a more complex analysis than standard caned statements. The 1004 form may not be sufficient to meet minimal Standard 1 and any review based on the information provided may only give your client an overview of USPAP violations, with no conclusions of the value analysis. Because of these inadequacies, even providing additional comparable’s might be impossible with out a full field review with interior inspection. Which would be a new appraisal and a review which calls for more than a standard fee :!:
Chris
 

George Hatch

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Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
There are two issues here; the original appraisal and your review. Of the appraisal, that can be divided into two elements; the development of the opinion of value and the report that is supposed to communicate it.

From your comments it looks like the report itself has some significant problems, even if the value is dead on. Those problems should be corrected regardless of how you feel about the value.

As a reviewer, your own competence is an issue as well. If you even think you're out of your element then you are required to either develop that competency, seek out another appraiser/reviewer whom you believe to be competent, or decline the assignment. You can be sure that if you write an adverse review on this that the supervising appraiser will want to do battle and your competency will be the very first question asked. A catfight is in no one's best interests, including the Client.

As for the uniqueness of the subject property, let me say this. It may be a lovely property and everyone would want it. But as an appraisal assignment this is an ugly deal. Your original appraiser(s) may have done the best they could with the data available. This is a glass house we are all occasionally forced to occupy so throw the stone with great caution. You gotta actually have the better comparables or the better analysis in hand as part of the review.

My $.02.
 

Carnivore

Thread Starter
Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Thanks for the advice. I called the Client and returned the order with no action on the grounds that I could not satisfy the competency provision of USPAP in the allotted time frame and fee.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
That was the best thing. The cost of the quantity of aspirin required would have negated any profit. :wink:
Mell.
 
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