Tidewater...agent submission of sales

[kelsey]

Invoked Tidewater on a property with sales price of $1,275,000 (DOM in excess of one year). Agent responded with two sales which sold for $1,750,000 and $1,580,000. Even if similar properties, would these sales be inappropriate due to huge variations of value? Would a typical buyer spend $300,000-$500,000 more for a competing property?

 

[Dublin ohio]

. Even if similar properties, would these sales be inappropriate due to huge variations of value?

How similar are they? Must be something substantial that is different

 

[shrubberyvaluation]

Invoked Tidewater on a property with sales price of $1,275,000 (DOM in excess of one year). Agent responded with two sales which sold for $1,750,000 and $1,580,000. Even if similar properties, would these sales be inappropriate due to huge variations of value? Would a typical buyer spend $300,000-$500,000 more for a competing property?

If they are similar why did they sell that much higher? I wouldn't look at it as $300-$500k I'd look at it more of a percentage basis. Its also possible higher end property buyers would have a higher price range than properties that attract lower income buyers.

Your response shouldn't have to do with the price difference, but rather why the properties are more dissimilar than your comps.

 

[J Grant]

As an appraiser, you should be able to provide the answer to that question.

In my price with high-end markets, no , a buyer would not typically pay that much more -esp for the $1,750,000 property. The $1,580,000 maybe.. But aside from price, what is different about those two sales wrt the properties themselves? Are they substantially bigger, or on larger lots , or newer, more upgraded or a different location?

There is a reason they sold higher - what is it?

And your subject being on the market a year shows that if a higher offer was lurking around, they would have had it in all that time.

 

[Joe Flacco]

$1.58 is certainly in the range of $1.275. is say $1.75 depends on what the difference is. Never a good idea to search for comps by price.

 

[kelsey]

As an appraiser, you should be able to provide the answer to that question.

In my price with high-end markets, no , a buyer would not typically pay that much more -esp for the $1,750,000 property. The $1,580,000 maybe.. But aside from price, what is different about those two sales wrt the properties themselves? Are they substantially bigger, or on larger lots , or newer, more upgraded or a different location?

There is a reason they sold higher - what is it?

And your subject being on the market a year shows that if a higher offer was lurking around, they would have had it in all that time.

Maybe my question wasn't clear. Of course, there are vast differences in the higher priced properties (of course, the agents involved in the Tidewater response don't think so!). My question was whether or not I should feel obligated to include these sales in my response to the lender; just acknowledge they were submitted but not relevant to the analysis.

 

[Dublin ohio]

My question was whether or not I should feel obligated to include these sales in my response to the lender; just acknowledge they were submitted but not relevant to the analysis.

They provided them it is up to you to explain why they aren't more similar than the ones you used. Shouldn't take more than a paragraph

 

[J Grant]

Maybe my question wasn't clear. Of course, there are vast differences in the higher priced properties (of course, the agents involved in the Tidewater response don't think so!). My question was whether or not I should feel obligated to include these sales in my response to the lender; just acknowledge they were submitted but not relevant to the analysis.

I address ROV but not Tidewater, so I can't answer specifically.

But I would think addressing the sales individually would be best. Explain what makes them very superior and that they are would need huge downward adjustments for their superior features of being bigger, newer, etc.

 

[shrubberyvaluation]

$1.58 is certainly in the range of $1.275. is say $1.75 depends on what the difference is. Never a good idea to search for comps by price.

I will disagree slightly. I do a final search by price after I narrow my comps down as some get mislabeled in MLS. Detached labled as attached, or condo/fee simple entered wrong, or even GLA can be entered wrong and leave comps off the search sometimes.

 

[shrubberyvaluation]

Maybe my question wasn't clear. Of course, there are vast differences in the higher priced properties (of course, the agents involved in the Tidewater response don't think so!). My question was whether or not I should feel obligated to include these sales in my response to the lender; just acknowledge they were submitted but not relevant to the analysis.

You should not feel obligated to do a misleading report. I'm shocked you are on the VA list and do not know that you shouldn''t give in to pressure, only if you missed something relevant or made an error.