Why can't the number hitters see the inevitable?

[Pamela Crowley (Florida)]

You GO Blue1 :!:

 

[jtrotta]

Tim;
Here come the bad guy; in your statement (and a couple of others) mention was made of the "un-informed Buyer" - if this Buyer is a "Pilot" he should have an understanding of the "value" of a Hanger on his property. Now, I'm not saying your wrong, but perhaps if a "Willing Buyer" would pay more for a property cause it has a "Boat Dock" so he can park his boat - maybe "IT" has to be given another type of look.
I don't dobt, that the "agent & LO" are in it for their Fee, but I don't believe anyone has twisted this fella's arm to Buy this property; his reaction to your report, means in his mind he see's everything differently and therefore your wrong. Also, you have now provided a "sub-theory" in the buyers mind, if he wanted the property before, he wants it more now-cause your attempting to block his purchase.
Perhaps you need to provide data reflective of the hanger aspect, even if it is older, and maybe Austin could provide some RA support for you, he's in Tx also, he swears by the science end.

Good Luck 8)

 

[Tim Hicks (Texas)]

This is where the debate should begin. An airline pilot is not an expert on property values any more than I am an expert on flying. Cost does not equal value. Desire does not equal value, unless you are paying cash, of course. If a borrower wants to pay more than a home is worth, let them pay it out of their pocket. It is not the appraisers job to make the propety worth their price so they won't have to pay any cash. This is a custom home build job. I have no contract to work with. I do know that he paid in the the $40-45,000 range for the lot and now he says it is worth $65,000. The loan officer says that they are working with a $390,000 cost to build (including lot), but can't clarify if that is with what he paid for the lot or his estimated lot value. He already has a per-construction appraisal for $433,000 with three home sales that are over 10 miles away, over 800 SF bigger and don't have hangars. The underwriter asked for at least two sales from the addition (there were over 200 sales in the addition last year) that support the value. He provided one lake front property and two lake front properties from another gated addition five miles to the north, all three of these sales are over 800 SF bigger. This property is not on the lake, it is not on the air strip, it is across the street from the air strip and must access the air strip through grass alley ways and crossing the paved street. I have one lot sale across the street that is bigger and has direct access to the air strip that sold for $47,500. I don't know about your areas, but most additional improvements such as pools, workshops, barns, etc suffer form functional obsolesence and have a lower contributory value. Rarely, can we give somebody $35,000 credit for their pool, $25,000 for thier barn or workshop, etc. We don't in Mr. King's area either. The borrower has a skewed idea about what his home is worth because of the ridiculous appraisal that was done pre-construction.

Mr. King and Mr. Trotta are correct, I should attempt to find another home sale with a hangar, and use it as support for my value. However, the theory of substitution applies to all aspects of the property and certain things like site value, location and market appeal should also apply and many times appraisers forget this part. Remember the golden rule of Real Estate: location, location, location. Any sale I provide outside the area should only support the adjustments I have made for the homes directly in the subject market area.

 

[AC King]

Elliott,

The main point was, and is, one must have something to compare with to do a sales comparison approach. One may do a modified sales comparison using similar residences on similar sites with supported adjustments through contributory value of the cost for the added amenties but the opinion of value would be more difficult to support than by using similar properties with similar amenties.

 

[Kathy in FL]

Dude, you've been in the business how long?

Haven't you learned that the higher appraiser is always right?

And more competent, and just an all-round cool guy. The lower appraiser is a potential child-molester who wouldn't know a house if he fell over one.

Kathy in FL

 

[Pamela Crowley (Florida)]

Tim (Texas)

EXCELLENT POST! The really sad part is that no one would be upset with you at all IF the original appraiser had done the job correctly.

Some of the worst buyers/homeowners when it comes to a realistic view of real estate are the 'professionals' in other fields, ie: Doctors, Engineers, etc.... now I can add pilots. Oh... and those in professional sports. The have the money and let unethical Realtors, bankers, etc take full advantage of them if they just stroke their egos.

Bad, bad appraiser. How dare you rain on their stupidity parade. :roll:

 

[bobburnitt]

Tim,

I am in the same area you are in and agree with you totally, the number hitters are out of control. This business is more crooked than horse racing.

The problem is: too many appraisers. I am 50 years old and have seen this before in other "careers" I have had. When the supply exceeds the demand in a "profession", only the cutthroats and thieves survive.

BB in Texas

 

[Jim McGrath]

FNMA states that over 98% of all appraisals hit the sales price, so why bother with an appraisal. Good point. End of chapter one.

That's only a good point if you ignore all the previous appraisals that may have been done for this property but were ignored and discarded, and most likely not paid for, because they did not meet the value required.

It irritates me no end, when I see this statement, used to say appraisers are not needed for this reason. AMCs and AVMs are used because of this so-called fact, which is no fact, only spin.

Why don't they eliminate warrenties on new homes, as 98% of the time they are not needed, and the same with home inspections.

Jim McGrath

 

[jtrotta]

Jim M;
yep will have to agree with most of your comments, except "warranties on new homes" may pertain to State Laws alone;

most of the number hitters will be around till the market tightens up and then they won't have enough work. Lenders will change there ways at that point. In light of 9/11 - (Lenders) they're trying to grab as much money as they can right now to survive.

I still think you have to do good work if you plan on being in this business for any length of time; also, you should have some "self estem" & pride in what you do; reputation goes along way in any business. 8)

 

[David Mullen]

The number hitters will be around to turn out the lights. In bad times, the lenders and agents are so hungry they will do anything to make a loan.

The only thing that will stop the present crooked behavior is meaningful prison terms and really large lawsuits against appraisers and lenders.

I am surprised that the Federal Government has not used the RICCO statutes against some of these lenders. It is really obvious what they are doing and since it is interstate, they could be severely punished. I realize though that they have paid off enough elected officials to cover themselves from any actions.