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Top of Page 2 Sale Sold and Listing on the 1004 Grid page

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Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
I have a subject that when I run the stats for the SW quarter of the county I get no comparalbes sales of similar property, that being 2300 GBA on the above grade and 2000 GBA Finished on the Below grade, on 4.99 acres. The search stats I used was 2000 to 2600 GBA above grade on 2 to 5 acres and 5 to 10 acres.

Now where I run the stats for listings I find one for $584,000 at 2100 GBA Total finish 4200 on 5.17 acres. It been on the market for three years fist at 599,000 now at the $584 figure. This site on a privite small lake and privite beach with dock, Cabana, sauna and etc. I would consider it far superior to the subject.

Yet I consider the subject superior for the area as well. The subject has been on the market for a year at $359,000 with no takers. The guy built it and moved in, put it on the market two months after he moved in. The listing expired February 2,2008.

The next two subjects down the list sold in the past 12 months are 1829 GBA for $165K five years old and 1900 GBA four years old for $245K. The Two fortyfive would be superior to the subject as it is log and real stone on a privite lake. The $165K is on 15 acres ($5000 ac) and is more similar to the subject but is 500 GLA smaller.

There is nothing really similar to the subject that has sold or listed in the area.

Do I enter 0 for sales and 0 for listing, then go on to say that the subject is over built for the area?

How would you deal with this kind of problem? It is becoming more common as sales dry up and values continue to drop in the rural area?
 

Tom Woolford

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Gold Supporting Member
Joined
Nov 20, 2005
Professional Status
Certified Residential Appraiser
State
Florida
I use 0/0 frequently. It helps to support why you had to increase distance / time. It may not be overbuilt, just a slow / low volume market.
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
A couple years ago when the market was hot to trot, many times I would have 0 listings in my designated marketing area, if something hit the market it would go under contract the same day. It supported the contention of a rising market back then.
 

Tim Schneider

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Joined
Feb 8, 2007
Professional Status
Certified Residential Appraiser
State
Wisconsin
The lack of sales for properties on acreage is becoming more of a problem here too. People are staying put longer.
 

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Just spent the last two hours searching data bases for sales that I could use for comparables on this subject for the entire county. I went back two years. There just are none. There are a bunch on lake front, but a different market.

I could move four points of the compass and into other counties, but again a different market then the subject is in.

These people moved out and built these huge homes in this rural area on small acreage and there just are no sales in the high end unless on water.

There are six expiried listings that would fit the bill.

$359,000 they are going to have to move back to Madison to find that kind of market.

Whats a person to do?
 
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Mike Boyd

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Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
You absolutely must use 3 closed sales for comps 1-3, no matter how different they are. If the 3 closed sales are inferior it might represent the market for that area and you probably would not adjust for differences in GBA or GLA for the main and basement levels. Explain WHY. (there is no market data to support any adjustments for GBA/GLA.)
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
I agree with Mike B that you must have 3 closed sales as #1, #2 and #3. You might have 100% gross and net adjustments but you must have the three closed sales. And if that is all there is, then three sales is shown at the top of page 2 (almost every day occurrence for me) and the range is the unadjusted sale prices of the comparables in the report. Actives, pendings, could be any where from Zero to Zero or up to ??????.
 

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
I understand the 3 closed sale as a must. Now I was thinking of using the cost approach with builder profit added in. Then discounting that figure for external obsolescence. That way they have the sales comparison, the cost approach since the subject is one year old and the discounted value because of the external obsolescence. That being the home is over built for the area/county. They then can select the value they want to use if any to proceed with the loan.

Also I would give a project marketing time figure as you do in ERC appraisal. This way they would have 0-120 days, 120-240 days and 240 to 360 and beyond. With the understand that this subject would only appeal to limited group of buyers.

What do you think???
 
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