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Property Appraisal Question
Posted on 11/14/23 at 10:25 pm
Posted on 11/14/23 at 10:25 pm
Quick question for any appraisers out there:
Trying to sell my property and the appraisal came in lower than what other units have been going for. When looking at that appraisal, one of the units that was used as a comp was a unit that was packaged together with other units.
My question: is that a fair comp? Should comps be units that are just sold individually since package deals will usually be lower than just one single unit?
Thanks in advance.
Trying to sell my property and the appraisal came in lower than what other units have been going for. When looking at that appraisal, one of the units that was used as a comp was a unit that was packaged together with other units.
My question: is that a fair comp? Should comps be units that are just sold individually since package deals will usually be lower than just one single unit?
Thanks in advance.
16
Posted on 11/14/23 at 10:26 pm to biglosdaddy
quote:just take a big los daddy
biglosdaddy
Posted on 11/15/23 at 12:20 am to biglosdaddy
Hope you are not in New York. Letitia James be coming for you.
Posted on 11/15/23 at 5:23 am to biglosdaddy
Post pics of your unit
Posted on 11/15/23 at 6:56 am to biglosdaddy
There is a human element involved and people are not perfect.
Question it and being it to peoples attention. It could be something minor that was missed and fixable.
Question it and being it to peoples attention. It could be something minor that was missed and fixable.
Posted on 11/15/23 at 7:09 am to biglosdaddy
quote:
When looking at that appraisal, one of the units that was used as a comp was a unit that was packaged together with other units.
My question: is that a fair comp? Should comps be units that are just sold individually since package deals will usually be lower than just one single unit?
You realize you can determine the value of a single unit that is packaged with other units, right?
I'm not saying you shouldn't contest it or that you're wrong, but just the fact that some of the comps were packaged with other pieces of property doesn't automatically mean you can't determine the FMV of that single piece of land and then compare it to your lot.
Posted on 11/15/23 at 7:58 am to biglosdaddy
Most appraisers are scared to over-value in this market because they will be blamed when it softens/crashes/etc.
Posted on 11/15/23 at 8:08 am to biglosdaddy
It's always fair to question and provide additional details. How far off % wise is the appraisal though? Are we talking 5% or 20%?
Posted on 11/15/23 at 8:34 am to biglosdaddy
quote:
My question: is that a fair comp?
Usually when comps have weird factors to them, the appraiser is using extra comps to support valuation.
My point being that the "packaged sale" probably isn't being used very heavily in the valuation but as a supplemental data point.
How many comps did the appraiser use?
3? You would have a legitimate gripe
4? The appraiser is grasping for extra data. Is the packaged sale close to the other 3 sale prices?
5+? Very little weight was given to your comp. It was probably added for 1 particular purpose in order to answer a potential underwriting question that could bounce back after review of the appraisal (bracketing. Most recent sale data. Same s/d., matches unique feature of subject property)
Posted on 11/15/23 at 12:39 pm to biglosdaddy
In a vacuum, you should not use bulk sales as an indicator of the value of a single unit. It's possible the appraiser overlooked that this unit was part of a bulk sale. You should bring this to your lender along with additional comparables that prove a higher value and request a reconsideration of value. Sometimes mistakes happen, we are not perfect, but we have the ability to correct it if the evidence is there.
So often when we get a reconsideration of value, they don't provide additional comparables, or the comparables that they do provide prove that the original value was in fact correct after adjustments were applied.
So often when we get a reconsideration of value, they don't provide additional comparables, or the comparables that they do provide prove that the original value was in fact correct after adjustments were applied.
Posted on 11/15/23 at 12:48 pm to biglosdaddy
Yes you can, it sounds like a fair comp.
Sorry your house is worth less than you thought, but that happens.
I hate to tell you, but your property almost certainly is worth less than it was a year ago. The market is undergoing a correction, how significant that will be depends on your area
Sorry your house is worth less than you thought, but that happens.
I hate to tell you, but your property almost certainly is worth less than it was a year ago. The market is undergoing a correction, how significant that will be depends on your area
Posted on 11/15/23 at 1:11 pm to biglosdaddy
They use a computer program and what ever # it comes up with, that is your value.
Posted on 11/15/23 at 1:13 pm to biglosdaddy
Sorry to hijack but is now a good time to become a slumlord? And can I get liability insurance on them?
30k houses on fb marketplace makes a man think
30k houses on fb marketplace makes a man think
Posted on 11/15/23 at 1:29 pm to biglosdaddy
The appraisal business is the most bs dirty unchecked business in real estate, construction, and banking . They can do what they want and if you question it, too bad. And it costs people thousands of dollars when they’re wrong clearly wrong as you pointed out.
Posted on 11/15/23 at 1:31 pm to biglosdaddy
Had an appraisal done on a house once and it came back about 50% less than the lowest of 3 offers we had on the house. The comps used were similar to the house but the house we were selling had a 3600 square foot shop with a 18 foot high roll up door, a 7.5" thick slab and a 400 amp 3 phase service. I asked about the value of that shop and the answer was it actually reduced the value of the home. I balked at this and the appraiser came back with an additional...wait for it....$3500. At the time I had a tenant in that shop building on a month to month lease paying $4000 a month. With a 12 month lease it would have EASILY rented for $3600 a month. It was worth $3500 TOTAL. Stopped arguing with the appraiser when a 4th offer came in for 25% more than the highest offer, in cash, and settled in 10 days. The appraisal racket is a slick con.
I have sold several homes where the appraiser asked the realtor what the offer was in my presence and when they had the number say something along the lines of "what do you know, thats exactly what it will appraise for". They are a bunch of crooks and there is no meaningful data in what they do...
I have sold several homes where the appraiser asked the realtor what the offer was in my presence and when they had the number say something along the lines of "what do you know, thats exactly what it will appraise for". They are a bunch of crooks and there is no meaningful data in what they do...
Posted on 11/15/23 at 5:49 pm to biglosdaddy
In regards to your questioning the multi-unit sale..... IT DEPENDS. With regards to the appraiser's motive understand that to most appraisers your assignment is merely one of many.
Almost all issues with appraisers and the appraisal industry are caused by your GUB-MENT. To say the industry is over-regulated would be an understatement. In the days of old a borrower could select their appraiser based on availability, competency, experience, etc. Not any longer. The government feels banks should rotate assignments among a pool of appraisers. Your appraiser's poor work quality is likely as a result of this policy.
This in a nutshell has led most quality appraisers to seek greener pastures elsewhere. We are left with very few appraisers with a passion for the industry. The bulk of 'so called' appraisers operate off of low fees and high volume.
In short, in an industry where low fee wins, the borrower loses.
Almost all issues with appraisers and the appraisal industry are caused by your GUB-MENT. To say the industry is over-regulated would be an understatement. In the days of old a borrower could select their appraiser based on availability, competency, experience, etc. Not any longer. The government feels banks should rotate assignments among a pool of appraisers. Your appraiser's poor work quality is likely as a result of this policy.
This in a nutshell has led most quality appraisers to seek greener pastures elsewhere. We are left with very few appraisers with a passion for the industry. The bulk of 'so called' appraisers operate off of low fees and high volume.
In short, in an industry where low fee wins, the borrower loses.
This post was edited on 11/15/23 at 6:04 pm
Posted on 11/15/23 at 6:08 pm to biglosdaddy
It’s possible it was adjusted based on that package sale. You’d need to retain your own appraiser to do an appraisal and make sure the valuation was fairly done. Appraisers do crazy things sometimes but often get adjusted or rejected by a review appraiser.
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