Value over highest comp

[fishbig010]

Correct me if I missed it - location? urban, suburban, rural??

suburban

 

[Mike Kennedy]

suburban

current comps distance from subject?

 

[glenn walker]

I would rather use qualitative and jump out subject subdivision, but you can do depreciated cost approach in sales comparison approach to support your adjustments. Income approach too possibly in Florida especially. Just have at least some support for an unadjusted sale or few that bracket your final opinion of value. Tell lender it's complex and taking longer. Talk to buyer if you can and ask their primary motivations.

I think Zoe is thinking that the buyers motivations are part of the process. Yes on the purchase side but on the appraisal side their motivations do not change the data and sales the appraiser is working with. Also unlike the Realtor we do not have a fiduciary or client relationship with the buyer and seller, and when a purchase appraisal comes in low its rare that a buyer is happy about it. I have had many buyers and sellers over the years say things that I had never said especailly when they are angry or if they lose the purchase. So I respectively disagree that you contact the Buyers

 

[fishbig010]

current comps distance from subject?

2 are within .5 mile, and other two are 1.4 and 1.9 miles respectively. Listing is 1.8. I am going to look again for other listings and sales. I went out 3 miles in my initial search, and may have to extend that if nothing is available.

 

[Zoe]

If buyer knows there is a zoning change in progress? See? Idk. Florida is a beautiful state.

 

[Zoe]

2 are within .5 mile, and other two are 1.4 and 1.9 miles respectively. Listing is 1.8. I am going to look again for other listings and sales. I went out 3 miles in my initial search, and may have to extend that if nothing is available.

I don't care how far you have to go. That's GSE bull. Just bracket it on unadjusted sales price. If indicated value is $295,000, Have one sale higher or equal to $295,000. Support your adjustments.

 

[Zoe]

Support your analysis, quantitively or qualitatively.

 

[Carnivore]

I think Zoe is thinking that the buyers motivations are part of the process. Yes on the purchase side but on the appraisal side their motivations do not change the data and sales the appraiser is working with. Also unlike the Realtor we do not have a fiduciary or client relationship with the buyer and seller, and when a purchase appraisal comes in low its rare that a buyer is happy about it. I have had many buyers and sellers over the years say things that I had never said especailly when they are angry or if they lose the purchase. So I respectively disagree that you contact the Buyers

Glenn as I read through this entire thread your post above kind of hit the spot. We often forget to question the Realtors why a Buyer is willing to pay more than the offered Price. I try to speak with both sides, Realtors . There is nothing wrong in doing that. They often know or just understand why a buyer is willing to pay more. I would not ever talk to the Seller or the Buyer.

This has been a good thread.

 

[glenn walker]

Glenn as I read through this entire thread your post above kind of hit the spot. We often forget to question the Realtors why a Buyer is willing to pay more than the offered Price. I try to speak with both sides, Realtors . There is nothing wrong in doing that. They often know or just understand why a buyer is willing to pay more. I would not ever talk to the Seller or the Buyer.

This has been a good thread.

If buyer knows there is a zoning change in progress? See? Idk. Florida is a beautiful state.

Buyers motivations in residential real estate are very difficult to determine and rarely based on logic and driven by emotions. A typical home purchase 80% of the time is driven by the women's wants and needs, a man may have some motivations but often it's just to keep the rest of the family off his back. An-Investor or someone who knows something that maybe the seller is not aware of like a change in Zoning or Land Use, is certainly not going to volunteer that information to anyone.

So It's OK to ask but you always have to read between the lines. That is why lenders are always asking if something has a negative effect on the future sale or marketability, because if they ever have to take it back the next buyers motivations will not be the same as the original buyers. Also in markets that are out of equilibrium , where there are very few active listings, buyers tend to get caught up in the panic buying mode and often are at or near a major market top. I call these market melt-ups, because it starts to feed on it self and each new higher sale is like an-outlier and then suddenly one day the music suddenly just stops. Yes its different this time but someone is always the bug and someone is the window- So by end of 2021 we are all going to know who was smarter the buyer or the seller. each city, state and community will be different , but right now we seem to be experiencing some irrational exuberance at least in my market area.

 

[Mike Kennedy]

2 are within .5 mile, and other two are 1.4 and 1.9 miles respectively. Listing is 1.8. I am going to look again for other listings and sales. I went out 3 miles in my initial search, and may have to extend that if nothing is available.

suggest also going back 2 years