This doesn't even look familiar to me....

[Charlotte Dixon]

A lender sent me a copy of someone's appraisal hoping my opinion of value would be at least as high as this appraiser's. To tell you the truth, I've never seen an appraisal like this one in all of the 20 yrs. I've been in the business. Here's just part of it and I've copied it word for word and number for number:

Location: Subj.average, Comp 1-equal, Comp 2-equal, Comp 3-equal

Rms/Bath
Subject 6/3/1
Comp 1 8/4/3-$15,000 (seems really high to me)
Comp 2 6/3/2 -$3,000
Comp 3 6/3/1 -$3,000 ????????

etc. etc. goes on and on with equal, inferior and average

Adj.S.Pr. $135,400 $147,500 $143,000

INDICATED VALUE BY SALES COMPARISON APPROACH $141,600
I/WE EST.THE MKT.VALUE DEFINED, ETC.AS OF.., TO BE $145,000

Sorry I couldn't line up the grid but this reply box wouldn't let me. This appraisal kind of blew my mind and I've tacked in on the wall so that whenever I question if an appraisal I've sent out is up to par, I look at this one. Have you guys seen anything like this one?

 

[graindart]

I can see the room count adjustments being screwed up, but don't find anything wrong with using the terms inferior, superior, equal, similar. I don't usually use them, but at times I'll us those terms when I get down to putting decks,patios, etc. Sometimes the comparable's amenities are in the backyard where I can't see them, and the public record card shows something (patio,deck) on the sketch, but doesn't tell me what it is. Instead of guessing if it's a patio or deck, I'll just indicate similar, superior, or inferior, depending on what the subject has.

Most appraisals I see, including mine, use poor,fair,avg,good,etc to define the line items, but as long as the appraisal is easily understood and not misleading, I don't have a problem with most other descriptive wording.

 

[John Hassler]

Charolette

I used to do a fair number of reviews when times were slow (I think reviews are high risk, low reward) and I have seen where the appraiser put in "superior/equal/inferior" for every comp feature. It doesn't mean its a bad report, per se, but it definately shows a lack of effort. We call that LB (Lazy Butt) out here . If they explain it later that's fine but almost always they don't and that's the problem you appear to be having.

I don't know your markt but I better see some explaination why they're comparing an 8-4-3 with a 6-3-1 (yes, there are legitimate reasons). The room count adj to comp #3 looks like an error (either it has a second bath or there should be no adj.). I don't know your market so I can't comment on the room count adj for comp #1.

I personally would give no consideration to that report in the situation you have with the client. There is some reason they can't use that appraisal or appraiser else they would. Offer to prepare a new appraisal with no guarantees as to value (collect a check upfront!).

John Hassler

 

[Terrel L. Shields]

I don't know if it is a lack of effort or not.

Reviewers for HUD have argued in meetings I have attende to ONLY use those terms. They do not want explanations. As for the value, curious, but did he / she weight the cost approach to arrive at a final value different from that indicated by the sales approach?? Now, it that is a single approach appraisal I REALLY would be baffled.

Ter

 

[Charlotte Dixon]

Now, it that is a single approach appraisal I REALLY would be baffled.Ter

You've got it Terrel....single approach. The whole thing baffles me.

 

[Mountain Man]

Eons ago I remember valuation letters like that, but now days we have the limited-restricted format. I do not see how a single letter could meet useless-poop. But if it is an "evaluation" and not an appraisal, then any bank employee can do it for the bank, including the janitor.

As for using superior, equal or inferior, I have seen that on typical residential reports too. To me, it makes it look like the appraiser flew through the form and just did not want to adjust. However, I have done some gov'ment work where they wanted it that way. They did not want adjustments without true paired sales, just wanted to know if it was +, - or =. But those reports are not done under USPAP, they are done under specific gov'ment standards.

 

[BigBlueGA]

Charlotte - That reminds me of a land appraisal I have stapled to the wall in my office. All comps are identical in the same subdivision and all comp out between 18,000 and 19,000....

But somehow without explanation (and this is a single approach appraisal) the reconciliation of both sales comparison and overall comes out to $35,000....

Would really like to talk to this appraiser about that one... :twisted:

 

[slacker]

Was there any explination in the reconciliation? I can see the -3K for comp2 and the others might be some type of room adjustment?? Was there any GLA adjustment or was it all on room count?

I usually only adjust on room count for bathrooms, everything else would fall under GLA.



www.appraiseillinois.com

 

[Karl]

"I wouldn't make a room count adjustment". "GLA takes care of room count" I can see no adjustment from a 3 & 4 bedroom, BUT how many don't adjust for a 3 bedroom versing 2 & how many Sq Ft of GLA do U allow before makin adjustment 10, 25, 50, 100 or just adjust it WHEN NEEDED (jokin) & do U explain Y U adjusted?

 

[Charlotte Dixon]

Brandon...

subj. 1,450 sf
comp 1 3,000 sf -$15,000
comp 2 1,200 sf +$4,000
comp 3 1,100 sf +$5,000

And, also confusing to me:
Site:
Subject: 25,800sf 3 lots 0
Comp 1 21,600sf 3 lots 0
Comp 2 11,900sf - +$47,000
Comp 3 12,600sf - +$47,000

Comments on Sales Comparison: The comparables selected are close to the subject and are within the same market. Adjustments were required, some of which are subjective.

Final Reconcilliation: The final estimate of value is based upon the value indicated by the Sales Comparison Approach which has been proven to be the most reliablel method for estimating market value in the subject's area and in this case supported by the Cost Approach. Final reconcilliation is not an averaging process.

I just can't figure out what the person is saying here! And I sure as hell can't visualize the property. Hope he/she put photos in the report! I can see one additional bath being adjusted by $3,000 (-$3,000) but why are 2 additiional baths being adjusted by $15,000 (-$15,000) ?