Superadequacy?

[Appraisal1]

Hello out there. This is my first post...and my first huge SFR appraisal. I am expected to appraise a monster house in Kissimmee with 8,500 sf of GLA. No comp anywhere is over 5,000. The house also has a huge screened in pool within the walls with balconies overlooking, 2 lighted, fenced, tennis courts, 1800 sf of garage space and 3 carports. It has 10 Beds and 6.5 baths, and sits on over 5 acres zoned ORS1 valued at 200,000 for the land by the county. When I did a paper search it easily comped out over 1 mil but every adjustment was outrageous. When I told the brokers the situation they didn't care if all the adjustments were going to be positive, all ending in 50 -75% Nets/Gross. It is a standard residential appraisal...and I've already been paid. They want it tomorrow morning because of some deadline. They also stand to make around 10,000 a commission. Needless to say I'm getting warning signals but can't seem to make sense of it all. So can anyone tell me that all I have to do is standard adjustments? Are there any special considerations that might apply to this property?

 

[Obsolescent]

First. This sounds like a complex appraisal. Second. You need to call the client and tell them its too complex for such a short deadline. After that, I don't know your market so I will acquiesce and allow the Florida appraisers to chime in. Just a guess....this will be reviewed by someone so you might want to be sure you know how to handle these types of assignments or find another appraiser who can help you with it. Pay them a consulting fee if you must.....it'll be worth every penny.

 

[Mike Boyd]

You MUST provide support that there is a market for a home with superior amenities than any other home in the area. Or, make nominal adjustments only to those extra amenities....then explain, explain, explain. Everyone can relate to White Elephants that sit on the market for years without selling.

 

[Appraisal1]

Hi Judy, thanks for the reply. I've actually been working on it for a week, I just decided to ask the forum appraisers for input. Why does it seem complex? I have all the data, pics, comps and have completed most of the URAR. I think I just need some perspective, a way to envision the subject so I can addendum and justify till the wee hours of the morning. I wonder if I should value the tennis courts, no comps have them of course...but it does seem like a desireable commodity. In reality it must have cost a lot of money to build them. Even thr lights look expensive.

 

[Appraisal1]

Thanks Mike, so you're saying that I wouldn't be able to adjust for the square footage unless I found a comp that sold that had larger GLA than the subject? Otherwise what do I do about the adjustments for GLA? Just adjust nominally meaning what...maybe 10$ per sf?

 

[Kevin A. Spellman]

In the MLS service I subscribe to I reviewed canceled and expired listings with unique properties and sometimes they are sales, but are not reported as closed sale in the MLS service. You can also contact the prior listing agent and interview the agent why a unique property did not sell.

I do suggest you take a picture of the homes within view of the subject so the reader understands the neighborhood properties. These types of assignments do enhance your skills to adequately seek reliable indicators of value.

 

[Obsolescent]

Hi Judy, thanks for the reply. I've actually been working on it for a week, I just decided to ask the forum appraisers for input. Why does it seem complex? I have all the data, pics, comps and have completed most of the URAR. I think I just need some perspective, a way to envision the subject so I can addendum and justify till the wee hours of the morning. I wonder if I should value the tennis courts, no comps have them of course...but it does seem like a desireable commodity. In reality it must have cost a lot of money to build them. Even thr lights look expensive.

My apologies. Your orginal post didn't come across to me as your having a lot of time to figure the problem out. Either its a superadequacy or its a "specialized" property.

To figure a value for the tennis courts, go as far back and as far out as you must and compare those properties with a tennis court to see if there was any contributory value. I have recently done a home with a full size gymnasium. I had to go very far to find a comp with that feature but developed a percentage of contributory value from that market and applied it to the subject.

When I get these type of assignments (and I get many) I will always bracket the gross living area and the features. I will go as far back and as far out as I have to. Good luck!

 

[bart nathan]

Look in tax records for similar size homes in the subjects market area.
Also call your local assesor to see if there is any homes of this size in the area.

 

[Appraisal1]

Thanks Judy, I'll search in nearby counties for useable comps.

 

[Mike Boyd]

Thanks Mike, so you're saying that I wouldn't be able to adjust for the square footage unless I found a comp that sold that had larger GLA than the subject? Otherwise what do I do about the adjustments for GLA? Just adjust nominally meaning what...maybe 10$ per sf?

Yes, if that. Maybe no adjustment at all. Same with the enclosed swimming pool and the oversized garage. Your adjustments MUST be market supported. If there are no sales for those extra amenities, on what basis would you make an adjustment?