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What to do? I get tired of the phone calls.

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Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
I am now runing into other problems. No comparalbe sales since things have slowed down.

I am working on a 30 + ac. property, nice 2200 GLA above grade and 2100 finished below grade. The assessor has it at $379,000 I can not find anything in the area for the past two years that sold for that on that much acreage. I can move 30/35 miles south and find a couple that has sold for 410K and 545K and one dairy farm that sold for 575K. The dairy is a different market critter and the other two are in different market for buyers then the subject is. The best I can do in the area on acreage is a range of $200K to $250K.

I live in the area and I know my home two years ago came in at $550K by another appraiser, today in the area it would come in at the $250K mark, if I stayed in the area for comparables. There are just no sales to support the higher value anymore. Can we say a correction in the market. In normal times my home would never have been in the $550K range and now its not again. By the way of the crow this subject is 5 miles from my house.

What to do?????
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Excess vacant land typically contributes $0.for Single Fam. Res Use. Comp to the most similar Dwellings FIRST.....including dated closed, contracted, and actives...... then factor in the land.:icon_idea:
 

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Excess vacant land typically contributes $0.for Single Fam. Res Use. Comp to the most similar Dwellings FIRST.....including dated closed, contracted, and actives...... then factor in the land.:icon_idea:


Thank you sir, I tried that and the LO/UW claim they can not sell the loan that way and it does not give a true picture of the value of the property.

Going that route as well, it appears the home is over built for the market. Cost approach will put it there and maybe I need to hang part of the hat on the cost approach.
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
Ray, from what I researched about FNMA guidelines concerning rural properties a few weeks ago, they don't put limits on the distance you can go for comparables. Also, remember, you can appraise the property in whole or in part. You don't necessarily have to give all 30+ acres consideration but, if you consider doing that I would definitely discuss it with the client first.

I just did a 12 acre subject the week before last. Because the only comps that sold were 5 - 6 acres within 30+ miles I went 32 miles for a property with similar acreage. I got a call back from the lender asking about the details of an out building I did not give consideration for but, other than that it sounds like everything went smoothly. Do what you gotta do.
 
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