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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 6:46 am to TheSadvocate
You've all been so helpful...
Posted on 11/15/23 at 6:51 am to biglosdaddy
quote:
biglosdaddy
LSU Fan
south louisiana
Member since May 2007
798 posts
Online
quote:You post less than one time per week over 16.5 years; how helpful have you been here, Mister Unit?
You've all been so helpful...
Posted on 11/15/23 at 6:52 am to biglosdaddy
You can contest the appraisal by providing the appraiser comps that you think are closer to what you are selling. It doesn’t mean they have to change it, but it does happen sometimes.
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 7:57 am to CocomoLSU
It’s reasonable to question using the packaged unit if there are other single comps available. Keep in mind the comps should be around the same age though.
I ran into an appraisal issue years ago when refinancing my last home. It was obvious the appraiser was just lazy, using comps he must have used for other appraisals (different style homes from miles away when there were a number of recent sales in my neighborhood with my home style). For purposes of my loan it didn’t matter, but I did point it out to the bank to make them aware of the issue.
I ran into an appraisal issue years ago when refinancing my last home. It was obvious the appraiser was just lazy, using comps he must have used for other appraisals (different style homes from miles away when there were a number of recent sales in my neighborhood with my home style). For purposes of my loan it didn’t matter, but I did point it out to the bank to make them aware of the issue.
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 8:05 am to biglosdaddy
You've all been so helpful...
--
Money Board may be a better option for your question.
--
Money Board may be a better option for your question.
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 8:44 am to ConfusedHawgInMO
quote:
Most appraisers are scared to over-value in this market because they will be blamed when it softens/crashes/etc.
We were the beneficiaries of this on the buying end a year ago. We got our current house for 114k less than their asking price and $64k less than our offer price because appraisers were recently put on notice that they're accountable for over-appraising houses. So appraisals started coming in a lot lower. This was right as interest rates started to rise and the massive bidding wars on houses was just ending. Comps in our area were a bit difficult because not many houses had sold in the appraising area and houses are quite spread out. They had to make a lot of adjustments to the comps used in order to derive the value.
Posted on 11/15/23 at 11:46 am to meansonny
quote:
Good morning,
Just a reminder that we will have PSR tonight at our usual time. This will be the last one before Thanksgiving break!
You are welcome to join us next Thursday at 9:00 AM for our Thanksgiving Mass! Put your turkey in the oven and come join us!
If you have any questions, feel free to let me know!
In Christ,
Carlos
Used 3 comps. The packaged one was $10,000 lower than the other 2 comps. Also took off $4500 from another one for "upgrades" that was also did in ours.
Posted on 11/15/23 at 11:48 am to sidewalkside
quote:
It's always fair to question and provide additional details. How far off % wise is the appraisal though? Are we talking 5% or 20%?
It lowers it to where we would be missing out on 10% of what we expected to make off of it.
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 12:41 pm to biglosdaddy
quote:
Used 3 comps.
You definitely could provide supporting data (your own comps) to the appraiser.
A multi-tract sale is not the typical arms length transaction which should be used as one of three comparable sales.
The hard part for you...
Find a sale in the subdivision/neighborhood with same floor plan (ranch, split, 2 story, basement, etc..) with similar square footage (<10% variance) within the past 6 months.
If he didn't find 3, you may have a hard time finding 1.
If you can't find 1, then you may need to essentially do your own appraisal (3 comps. 1 nicer. 1 not as nice. 1 as close to a mirror of your home as possible) to bracket a value.
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
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