What Do To With A Review Issue???

[Smokey Bear]

It might be considered as "hear say" but I don't see a reason to not add it.

What exactly is "hearsay"? When it's mentioned, it's often assumed that hearsay is not admissable. Some hearsay is not admissable under the "hearsay rule", but a lot of it is:

Dying declarations
Spontaneous or "excited utterances"
Res Gestae, or present sense impression - when someone was describing what was happening
Admissions and declarations against one's interests - like telling someone that you signed a report and didn't do the appraisal....
Business and public records
State of mind and physical condition
Statements not offered for truth of the matter stated.

There are more, but just because you're testifying as to what someone else said, doesn't mean it's not admissable evidence.

 

[Tim Hicks (Texas)]

Just have Otis call him, instead.

 

[Jim Onderisin]

Murray: I have no opinion on the appropriateness of the way you handled the appraisal you mentioned. But, in the case I mentioned, there were abundant recent sales of two-unit buildings within a five city-block area which could have been tapped for comparable sales, but the appraiser chose to include 3-unit buildings from the same area instead of 2-unit buildings. Definitely a problem with methodology, wouldn't you agree? By the way, I should mention that the appraisal appears to have over-valued the building by about $100,000.

As Dennis pointed out, using comparables with different numbers of units really plays havoc with the income approach. Gross rent multipliers differ for buildings with differing numbers of units within the same area. It also plays havoc with everything else in the appraisal. I won't use sales of varying number of units as Sales 1, 2 or 3. Not ever. Even if I have to travel miles to include more comparable sales.