What is your definition of COMPLEX?

[TxArmadillo]

I've chatted with a few appraisers on what they consider a "complex" appraisal.

The responses were all over the place. None couldn't really explain how they determined something was complex. Instead, they gave examples of various scopes of work and properties that they considered (and charged as) complex. Frequently, the examples they gave varied greatly from one appraiser to the next, even though a couple of these guys serviced the same neighborhoods.

So, friends, in hopes of my gaining better insight, how do you define "complex"? Examples are appreciated!

 

[panappr]

Fourplex on a golf course with exceptional views....

SFR or Units / Beach front with limited parking.

Historical SFR / Urban 2 acres flat.

I define complex as anything extraordinaire....

I usually work on battleground properties with friends (certified and general).

 

[residentialguy]

I've chatted with a few appraisers on what they consider a "complex" appraisal.

Appraising anything after a bubble.

 

[Smokey Bear]

"I" don't define it. It's defined in the Federal Register, and explained on OREA's website.

 

[TxArmadillo]

I usually work on battleground properties with friends (certified and general).

I bet those are interesting! Which battlegrounds?

Sorry, I'm a history buff.

 

[TxArmadillo]

"I" don't define it. It's defined in the Federal Register, and explained on OREA's website.

Link to the appropriate section of the Fed Reg?

Oh, and if you're referring to the California "OREA", that's not helpful to anyone outside CA. Sorry!

 

[Rlong]

It's like ****ograghy, I know it when I see it. It could be the property type or features, but also due to external factors.
Bob in CO

 

[J Grant]

Anything that takes more than 3 hours! (just kidding)

Since you are asking for our personal take.. a complex assignment is that which has some factor, either intrinsic to the subject or market, that in order to derive a credible value, demands a much higher level of research, analysis, additional approaches to value, and other expanded SOW than needed for more typical properties or markets.

Sometimes a complex appraisal starts out seeming simple. Size, price , or features does not always equate to complexity.

I have appraised some very large $ properties, including oceanfront, that were not very complex, because there were sufficient comps, market reaction was easily measureable etc. I have done small home FHA appraisals under 75k that turned out to be incredibly complex, due to property flipping, REO activity mixed in with regular transactions, sales prices jumping all over the place for no measureable reason,.

Some factors that contribute to an assignment being complex: lack of sufficient data, such as when few comps are avail, rapidly changing market conditions or neighborhoods in transition, conflicting information such as the same home type selling for high and low prices for no apparent reason, many sales types present such as REO, short, flip and reg sales, or significant obsolesence or over improvement problems. Sure there is more out there to add to the list!eiondtionehretegvs location imeauateis used for mosre d combinations of value methods, much more ardous process than arriving at value through the typical appraisal process.

 

[residentialguy]

How do you know it's complex? Easy. If you get an order from an AMC that's willing to pay you C&R fees, it's complex.

 

[Lee Lansford]

An appraisal of a property where there is extremely limited appropriate market data from which to develop a credible opinion of value.