Walk Out

[Marty Boone]

LiveJoy, take a look at the comparable sales and see if they were adjusted for large seller concessions. The first box below Value Adjustments, if the comparable sales show adjustments for high dollar amounts for concessions this may be part of the reason for the lower than desired value opinion. As for the lack of finished basement adjustment, this wouldn't make sense to me either.

 

[J Grant]

We don't know anything about the 205k sale other than it did not have a basement. Was it superior in other ways to the subject such as upgrades? We have no idea. Without seeing the comps, photos etc it's hard to tell if the value is only different because of the basement or if other factors are present. It is possible the appraiser mis valued the basement, but without seeing their comments, and reasoning and other adjustments we can't really tell.

 

[LiveJoy]

>> The contract on mine is for $219,000.
>> The appraisal came in at $203,000.
>> The other condo, with a fireplace and without a walk-out to a patio
>> and with an unfinished, fully below grade basement sold for $205,000.

Folks, something sounds wrong to me here.
If we have a model match, and condition, view, and other amenities are fairly equal,
logic would suggest that the property with the finished walkout basement would sell
for more than the property without that amenity.
I'm not arguing for $219,000 but something more than $205,000
The appraisal suggests this extra has a negative value.
--- Unless values in the area have been slipping, looks to me like the appraisal is in error.

QUESTION TO THE Original Poster:
How long ago was the sale of the other unit at $205,
within the last year, 2-3 years ago?? .....6 weeks ago??

It sold in July.

 

[Mike Kennedy]

Livejoy - see posts #38 & 39

 

[ucbruin]

OP "Unfortunately in the past six months there was only the one that was like mine that sold in our community."

Limiting potential comparables to 6 months - IF this was done by the Appraiser - MAY possibly have resulted in a deficient report. Did the report indicate 6 months as the time frame for the comparable search? The Appraiser and RE Agents involved in the transaction could have, and should have researched retroactively IN your development to determine IF and WHEN another similar Unit sold with a similar finished basement rec room. Secondly, all 3 should also have researched, your Condo Mgmt records, BOTH MLS and your local Assessor's sales records on truly competitive local condo developments as well. To either prove your Rec has some, or no contributory market value it is not unrealistic to retro search 1-3 years possibly 5.

Did you inquire whether or not any of the 3 parties above performed expanded potential comparable sale searches? Were there any Active or Contracted Listings of truly similar units with partially or fully finished Basements?

IMO, unless and until those questions are answered a formal Reconsideration of Value is in order.

SHOULD expanded search(es) by the Appraiser have been addressed IN the appraisal report then you have THAT Appraiser's opinion supported by market facts.

The market (other buyers and other sellers of similar Condos) may or may not consider the additional finished basement to be atypical and an over-improvement with no additional contributory value.

Almost sounds as if you are encouraging/condoning "hitting the bullseye".

Just messing with you!!!!

 

[Dan Umstead]

As I said earlier, I contacted the Vice President of the Appraisal Company, and he brought up the appraisal on his computer. I pointed out what I believed to be "errors" or "omissions" on the report. I had him bring up the pictures of my home and the pictures of the #1 comp and I showed him the differences. At least he listened to me and said he would see what he could do. Unfortunately in the past six months there was only the one that was like mine that sold in our community. There were others that sold but were different floor plans--two story, two car garages, one bedroom, no garages, etc. That was the only one with the same first floor plan, and some type of basement.

Who is the "Appraisal Company"?

 

[LiveJoy]

QUESTION TO THE Original Poster:
How long ago was the sale of the other unit at $205,
within the last year, 2-3 years ago?? .....6 weeks ago??[/QUOTE]

The $205,000 was on 9/15/15.

 

[LiveJoy]

We don't know anything about the 205k sale other than it did not have a basement. Was it superior in other ways to the subject such as upgrades? We have no idea. Without seeing the comps, photos etc it's hard to tell if the value is only different because of the basement or if other factors are present. It is possible the appraiser mis valued the basement, but without seeing their comments, and reasoning and other adjustments we can't really tell.

I didn't go into details here, but I have done work to my condo in addition to the finished basement. i.e. new stainless appliances three years ago (Whirlpool Gold), the refrigerator is included with the sale,new range hood, replaced all the carpeting on the main level last June, replaced the air conditioner condenser from a small York model to a large Payne, bought a new metal garage door a year ago to replace the wooden doors that have been showing wear throughout the community after 15 years, changed dining and kitchen light fixtures and freshly painted every room. I made every effort to make my place move-in ready. The other condo that I cite was in similar condition inside: new carpet, new appliances, fresh paint. My home has views of a large green space out of all the rear windows with mountain views in the winter. The other condo has nice views of grassy area and a field in the distance. I think it has a new garage door too. The main difference is the type of basement and the fact that it's unfinished.

 

[LiveJoy]

We don't know anything about the 205k sale other than it did not have a basement. Was it superior in other ways to the subject such as upgrades? We have no idea. Without seeing the comps, photos etc it's hard to tell if the value is only different because of the basement or if other factors are present. It is possible the appraiser mis valued the basement, but without seeing their comments, and reasoning and other adjustments we can't really tell.

When I finished the basement I wanted it to feel like the main living area. Rather than a dropped ceiling, I had it sheet rocked, vented for heat and a/c, more electrical outlets than code required, two ceiling fans, boxed-in sump pump with a swinging lid (all condos here are required to have sump pumps even though we have no water issues whatsoever), water meter boxed in with an access door, molding around the entire carpeted floor. In my opinion, and of course I'm biased because it's my home, it flows just like the upstairs. Everyone who sees it comments on how it is such a great space. The big questions are: Does a finished basement have any value? Does a walk-out basement have any value?

 

[LiveJoy]

Who is the "Appraisal Company"?

Appraisal Nation