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Suggestion on how to deal with this, my best AMC?

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Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
What do you do when a subject is new construction. The owner is spending $342,000 to build it including the land, MS and Craftsmen bring it in at $278,000 with the land and sale approach bring it in at $245,000 with the land. Using 3 three of the five sales in the past 12 months that are similar, tossing out the high and the low one. With a current inventory of 45 homes on the market similar to the subject. And a total of a 178 homes for sale in the search area, with a total 23 homes sales in the past 12 months in the search area.

He bought the lot two years ago when prices were at thier peak, now the slew is worth about half of what he paid for it.

How do you cause the AMC and Bank to understand, that the market has tanked in the area for resort homes on water and most of the big city boys and girls are wanting out. That the tourist business was off 60% +/- this summer, 40% of the boats were never put in the water this year. (check my auction site out www.raymiller.ws click on up coming auctions and see the new boats dealers are consigning for my Oct. 25, 2008 auction). That the guys waterfront is a slew off the main lake and his is going to be the only house in the subdivision that has been finished for the past 24 months with no one building.

I have put all this data in the report and they are still yapping. This report is a 1004 and it is 47 pages of data and information proving up my numbers.

How do you deal with this????

Let me add this is a 1500 GLA home with a $17,000 worth of carpet on the construction contract and it is Modular Consturction. The kitchen and dinning room, 2 baths have no carpet.
 
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leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
...

How do you deal with this????


Lenders exist to lend money. Hence, they don't like to "hear" bad news that prevents them from lending.

What you are experiencing is a part of the problem as to why the economy and the residential real estate market is in the shape that it now is in.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Ray - define "yapping" ?????
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
As my perpetually drunk sister in law says - "It is what it is and I'm an a------!"

It appears you've proved your numbers. Does the owner have any input that would alter your opinion, it appears pretty black and white. The principle of substitution applys, why build something for $340,000 when very similar property is available for $240,000 or there about?
 

Smokey Bear

Elite Member
Joined
Dec 8, 2004
Professional Status
Certified Residential Appraiser
State
California
Ray, isn't "best AMC" an oxymoron?
 

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
If he was on any other large lake other then this slew on the small lake in the county, he might get a bit closer then where he is at.
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
<.... snip......>
How do you cause the AMC and Bank to understand <.... snip......>

Dear Client,

The market has tanked in the area for resort homes on water and most of the big city boys and girls are wanting out. The tourist business has been off 60% +/- this summer, 40% of the boats were never put in the water this year. (check my auction site out www.raymiller.ws click on up coming auctions and see the new boats dealers are consigning for my Oct. 25, 2008 auction). This borrower's waterfront is a slew off the main lake and his is going to be the only house in the subdivision that has been finished for the past 24 months with no one building. Please see the report I gave you and reference pages xx through xx of it. If after reviewing the report you still have questions, then please see the report I gave you and reference pages xx through xx of it.

Thank You

Appraiser


 

Rob Frazier

Sophomore Member
Joined
Jul 6, 2005
Professional Status
Certified General Appraiser
State
Maryland
Ray
I was formerly Chief Appraiser at an AMC so I see both sides of this. If you have completed and documented the report as noted above, but are still getting questions, ask them to connect you to their chief appraiser, or to set up a conference call with the client. You are probably dealing with an appraisal coordinator at the AMC who is dealing with a vendor services coordinator or processor at the lender. Tell them that this is a complex issue and that they need to escalate it to the appraisal department of the bank, or to the underwriters there.
This is one of the problems that have developed over the past 20 years: the people processing appraisal requests may not know how to handle a complex issue, so this needs to be escalated to a higher level.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
Isn't a backwater by a lake spelled slough? That's how I've always spelled it? I had some difficulty picturing a slew by a lake, is that kind of like slaw as in cold slaw, or slain like what we'd like to do to some AMC's??? :)
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
I don't understand the problem.....you are $100,000 low. So what....it is what it is. This can't be a first for you? There should be no phone calls on this except for thank you, your check is in the mail.



Dictionary.com Unabridged (v 1.1) - Cite This Source - Share This
slough1 /slaʊ for 1, 2, 4; slu for 3/ Pronunciation Key - Show Spelled Pronunciation[slou for 1, 2, 4; sloo for 3] Pronunciation Key - Show IPA Pronunciation
–noun 1. an area of soft, muddy ground; swamp or swamplike region.
2. a hole full of mire, as in a road.
3. Also, slew, slue. Northern U.S. and Canadian. a marshy or reedy pool, pond, inlet, backwater, or the like.
4. a condition of degradation, despair, or helplessness.


It would also be COLE Slaw....not cold slaw....although you can (and most likely prefer) cold Cole slaw.
 
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