- Joined
- May 2, 2002
- Professional Status
- Certified General Appraiser
- State
- Arkansas
For the second time in a week, a borrower has called me about the lead comment. One had asked for "anyone but appraiser X". I was forwarned. Two, was not my borrower, but called out of the clear blue. It seems Appraiser X told the borrower that his property would be worth more if the 40 x 800 poultry barn (5 years old and operating) was gone from his 39 acres that had 1320' of Hwy. frontage because the appraiser would figure the land worth more as Highway frontage lots (we are talking 8 miles from the nearest town except for an 89 person burg).
The other was 7 ac. near an industrial lake with 3,500 SF house. The guy had an appraiser appraise the home for $126,000. The house was a shell which the builder had ran out of money and had stood vacant for about 4 or 5 years before being sold to a builder who completed the work. I had appraised it about 3 years earlier as 7 ac., a manf. home, and the shell of a house (walls and roof, no interior finish) THe MH is gone. The builder has done a quality job because I had told my sub about the sale when he appraised a nearby acreage tract that had a partially remodeled house on it. He had visited the place and the house was nearly finished and very nice.
Seems that appraiser told the borrower that the land was worth more than the building (this is as finished) But neither appraisers had taken a functional or external obsolescence.
One of these guys has taught classes. Gimme a break. How can you pervert highest and best use like that? Land is appraised at its highest and best use. Any deduct comes off the improvements not the land. Land cannot depreciate..period!!
If they were merely trying to get these guys off their back, they did a poor job of it. They can see thru Bull---- even if it is green. The one wants me to look at the report when he gets a copy and I told him I would with the intention of sending it on to the State if it as errant as it has to be. No way is a good new house worth no more than $36/SF in that area even considering you can see a power plant. Enough is enough.
Ter
The other was 7 ac. near an industrial lake with 3,500 SF house. The guy had an appraiser appraise the home for $126,000. The house was a shell which the builder had ran out of money and had stood vacant for about 4 or 5 years before being sold to a builder who completed the work. I had appraised it about 3 years earlier as 7 ac., a manf. home, and the shell of a house (walls and roof, no interior finish) THe MH is gone. The builder has done a quality job because I had told my sub about the sale when he appraised a nearby acreage tract that had a partially remodeled house on it. He had visited the place and the house was nearly finished and very nice.
Seems that appraiser told the borrower that the land was worth more than the building (this is as finished) But neither appraisers had taken a functional or external obsolescence.
One of these guys has taught classes. Gimme a break. How can you pervert highest and best use like that? Land is appraised at its highest and best use. Any deduct comes off the improvements not the land. Land cannot depreciate..period!!
If they were merely trying to get these guys off their back, they did a poor job of it. They can see thru Bull---- even if it is green. The one wants me to look at the report when he gets a copy and I told him I would with the intention of sending it on to the State if it as errant as it has to be. No way is a good new house worth no more than $36/SF in that area even considering you can see a power plant. Enough is enough.
Ter
