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Unique Home Equals Wacky Appraisals?

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Larryskillzs

Freshman Member
Joined
May 17, 2017
Professional Status
General Public
State
Virginia
IMG_0091.PNG IMG_0092.PNG Hi all. First off, I truly appreciate how hard of job you all have with doing appraisal work. There's so many variables that makes a home what's it's worth.

We are currently selling our home. We were hit with a crazy low appraisal and it was a head scratcher.

We own a home in the Occoquan Forest in Northern Virginia. It's a community that has all custom spec contemporary homes on wooded lots.

It's a very desirable place to live since there's really nothing like it in the entire Northen Virginia area.

Our house is a backwards house. The first floor is all above grade that has no bedrooms. The bedrooms are all on the lower level. There's a total of 4 bedrooms and 2 bathrooms downstairs.

When we purchased the house in 2014, the appraiser priced out the upstairs part at $225 a square foot and the downstairs at $65 and our appraisal came in at $476,000

The market in the area has been steady and slowly appreciating since 2014.

We have a seller buying the house at a reasonable 499k. We have invested $40,000 in major improvements like new roof, rotting garage doors, and dated 1/2 bath over the 3 years since we moved in

The new appraisal came in at $450,000 and the appraiser priced out the upstairs at $120 a square foot, which is $105 a foot below our appraisal in 2014.

The average per square foot in Prince William county is $189 a foot give or take. It would be very hard to find property at $120 a foot in my area.

Any insight would be appreciated on why would there be such a difference in square foot price. Also, since the homes are not traditional and unique, what's the rule on apprasing the unique property. The buyers are devastated on the appraisal. We are scratching our heads. I can also give you more info if asked, but the buyers are currently contesting the appraisal and looking to seek other options.

Thanks!
 
Last edited:

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
A couple of terms for you to research with your favorite web engine search:

Cost vs. Value

Contributory value

Economy of scale
 

A K

Elite Member
Joined
Jul 31, 2013
Professional Status
Certified Residential Appraiser
State
Maryland
Both cost approaches do not look right to me based on your description of the property. But anyways the cost approach is a less reliable indicator of value for older homes and the report probably says that in there somewhere.
 

Larryskillzs

Freshman Member
Joined
May 17, 2017
Professional Status
General Public
State
Virginia
Both cost approaches do not look right to me based on your description of the property. But anyways the cost approach is a less reliable indicator of value for older homes and the report probably says that in there somewhere.

Would that be in the notes? I'll look around and snap a pic.
 

A K

Elite Member
Joined
Jul 31, 2013
Professional Status
Certified Residential Appraiser
State
Maryland
Would that be in the notes? I'll look around and snap a pic.

There should be a final reconciliation in the report somewhere that talks about which approaches to value are good and which are not.
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I've never seen such nice round unit values in a cost approach, especially from M&S......what do you expect for $350?
 

Larryskillzs

Freshman Member
Joined
May 17, 2017
Professional Status
General Public
State
Virginia
All the notes on the property. I just realized the property was transferred 36 months before this report. I'm just throwing my hands up because the more read into the report, the more I get sad.
 

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Larryskillzs

Freshman Member
Joined
May 17, 2017
Professional Status
General Public
State
Virginia
I've never seen such nice round unit values in a cost approach, especially from M&S......what do you expect for $350?
Hey, don't blame me!! Lol. I know, it's a joke.
 

Larryskillzs

Freshman Member
Joined
May 17, 2017
Professional Status
General Public
State
Virginia
From what the realtor told me, the lender(navy federal) picks from a pool of appraisers and there's nothing that can be done about it.

Currently, Navy Federal is not going to order another appraisal.

If the sellers want to move on, what's the best way to get a lender to hire a competent appraiser?

I think I have to start to point the finger at the lender the more and more I think about it.
 
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