ZZGAMAZZ
Elite Member
- Joined
- Jul 23, 2007
- Professional Status
- Certified Residential Appraiser
- State
- California
Would you be so kind as to describe for me what the following comment means:I am working on a pre-list appraisal for a homeowner. Quality and quantity of sales data is good with only one (1) active listing available due to current market conditions. Income and cost approaches were not developed due to lack of validity. Sales comparison approach was relied on with a reduction in the unadjusted value range from 29.35% to an adjusted range of 9.61%, noting a primary value indicators (best sales) have a value range of 0.85%. The correlation of the adjusted sales price range is so tight because all the homes are almost the same. All adjustments were developed with strong support based on good quality and sufficient quantity of data. Kind of a slam dunk on a basic appraisal. Perfect to teach a trainee how to develop adjustments.
Then there is a listing two doors from the subject property. Purchased from the homeowner on 04/30/2021 for $300,600. It was recorded at he register of deeds on 05/03/2021 as a General Warrantee Deed Transfer in the amount of $10.00 lawfully seized Fee Simple. Last recorded mortgage amount was $213,750 on 10/17/2006 with Chase, far from upside down with what appears to be a substantial history of payment. Possibly the owner has experienced some sort of duress and couldn't continue with mortgage?... Recorded title company is Zillow Closing Services, LLC. Acquired and relisted on 05/16/2021 for $322,900 by Zillow Home Property Trust. I know the home hasn't sold but that is a 7.42% increase in the 16 days since the date of purchase. Annualized that is 61.83%.
Zillow Home Property Trust acquired the property as dated (eff age 25 yrs +/-) unless there were items that would require capital expenditures at the point of sale, or soon after that were not disclosed. Not a single update between purchase and relist that I can see based on MLS photos. Talked to a couple neighbors and my client and they were not aware of any duress to the seller or issues with the home. Nice enough place, just never updated. Realtor won't give any information?..... Market conditions are +16% annual with most of that occurring after the new year. Almost no cash sales in neighborhood so the values are not getting blown out due to bypassing the appraisal like in other neighborhoods. Most homes homes in the neighborhood, and those that are similar in characteristics of comparison have been partially or mostly updated giving them significantly increased appeal relative to this listing. Based on my research this property should not have even sold for $300,600, more like $280,000'ish. Keep in mind there is strong conformity and compatibility of housing with main differences being effective age and outdoor living area (pool, lanai, patios and porches). This neighborhood is perfect for appraisal waivers.
My question is has anyone seen this chain of sale and relist with Zillow Home Property Trust (and title)? It appears they are fully vertically integrated and can create their own market segment. This doesn't sit well with me and in my mind a credible answer is not "it is just a listing at this point and until it sells we cant rely on it".
Any feedback is greatly appreciated!
Stephen D Ihrig II, SRA
SDI Appraisal
Sales comparison approach was relied on with a reduction in the unadjusted value range from 29.35% to an adjusted range of 9.61%, noting a primary value indicators (best sales) have a value range of 0.85%.
I have hoped for quite a while to express the 'width' of a range of adjusted values with a metric/value without knowing how to do so. Are you subtracting the low from the high and then dividing by the low?
