Question for a professional appraiser. I got an appraisal report that uses Alcove Studio as a Comp for my 1 bedroom. The report INCORRECTLY states that the Alcove Studio has 3 rooms, while public sources state that there is only 2.5 rooms. The report also does NOT have an adjustment for the fact that the comp is a studio - just adjustment based on the square footage BUT not on the inferior... [more]
Question for a professional appraiser.
I got an appraisal report that uses Alcove Studio as a Comp for my 1 bedroom. The report INCORRECTLY states that the Alcove Studio has 3 rooms, while public sources state that there is only 2.5 rooms. The report also does NOT have an adjustment for the fact that the comp is a studio - just adjustment based on the square footage BUT not on the inferior functional utility.
Appeal was filed that pointed the above-mentioned facts to the appraiser and the response was, "it's perfectly fine to compare alcove studio to a 1 bedroom and the only difference is square footage."
What are my options here? Are there any guidelines for comparison of a studio to 1 bedroom? Is there an authority I can go to with the appeal because it's clear that I'm not getting through to this appraiser?
Thanks in advance!
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Response by chuckl1233
over 14 years ago
Posts: 122
Member since: Jun 2007
How much of a differnce in value is the discrepancy?
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Response by ags
over 14 years ago
Posts: 25
Member since: Apr 2010
Chuck, thanks for your reply. Am I understanding your question correctly? - how much is the difference in value between the expected value of 1 bedroom and the appraised value of the 1 bedroom? If so, the expected value was in low 800-820. The appraised came in at 760.
The studio came in at $740, two other closed one bedrooms in the same building were adjusted to 782 & 787 ( in the same appraisal ). Another one bedroom listing was docked to $760 because it's a listing ( not a closed sale ). Finally, the 5-th comp from 10 blocks north came in at $740.
If there is some adjustment for the fact that it's a studio, I'd get 3 out of 4 comps to be in 780-790 range at least...
In addition, I have 2 independent appraisals of another 1 bedroom on the same floor as the subject that's 50 sqft smaller than the subject and in inferior condition. Both of those independent appraisals came in at 755 - so it's clear that this appraisal is off, but not sure if I can do anything about it...
Let me know if I missed your question.
Thanks!
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Response by ab_11218
over 14 years ago
Posts: 2017
Member since: May 2009
go to a different bank... appeals do not work.
my friend was refinancing two Jr 4 two bedrooms in the same building, on the same floor, with the same renovation. one idiot appraised it with 1 br in buildings with huge flip-taxes and with others 1 block away from projects. there was nothing that could be done. the other unit appraised with no problems.
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Response by chuckl1233
over 14 years ago
Posts: 122
Member since: Jun 2007
I believe you can dispute the value with a formal complaint if you want to but I don't want you to waste your time with paper work. Ask your mortgage broker about it. Honestly, some people don't know how to an appraisal.
I wish you luck and hopefully everything works out.
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Response by ags
over 14 years ago
Posts: 25
Member since: Apr 2010
Thanks guys! Going to a different bank.
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Response by shong
over 14 years ago
Posts: 616
Member since: Apr 2008
Ags - were there other comps in the buidling within the last 6 months that clearly show other 1 bedrooms closed in the 800-820k range? Coop or condo? Sunny.hong@bankofamerica.com
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Response by ags
over 14 years ago
Posts: 25
Member since: Apr 2010
Hi Sunny. Unfortunately, only one 1 bedroom closed in the last 6 months ( 2 weeks ago ) @763k - 50 sqft smaller + inferior condition. In the comp grid, appraiser ignored condition, but adjusted mine based on sqft to 787k, but I guess it was not weighted enough as mine still came in @760k.
Thanks!
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Response by shong
over 14 years ago
Posts: 616
Member since: Apr 2008
They probably ignored condition because they dont get to see the interior of other units. That closed 1 bedroom comp will make it difficult for the appraiser to justify 800-820k. Something in the high 700's sounds more reasonable. But unfortunately, you'll just have to try with another appraisal and see how that comes in. Remember, banks cannot communicate with appraisers anymore. The broker that meets the appraiser can give comps but in the end it is up to the appraiser as to what comps they use and the final value. sunny.hong@bankofamerica.com
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Response by chuckl1233
over 14 years ago
Posts: 122
Member since: Jun 2007
Yep, 100% correct shong. It's very different now...
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How much of a differnce in value is the discrepancy?
Chuck, thanks for your reply. Am I understanding your question correctly? - how much is the difference in value between the expected value of 1 bedroom and the appraised value of the 1 bedroom? If so, the expected value was in low 800-820. The appraised came in at 760.
The studio came in at $740, two other closed one bedrooms in the same building were adjusted to 782 & 787 ( in the same appraisal ). Another one bedroom listing was docked to $760 because it's a listing ( not a closed sale ). Finally, the 5-th comp from 10 blocks north came in at $740.
If there is some adjustment for the fact that it's a studio, I'd get 3 out of 4 comps to be in 780-790 range at least...
In addition, I have 2 independent appraisals of another 1 bedroom on the same floor as the subject that's 50 sqft smaller than the subject and in inferior condition. Both of those independent appraisals came in at 755 - so it's clear that this appraisal is off, but not sure if I can do anything about it...
Let me know if I missed your question.
Thanks!
go to a different bank... appeals do not work.
my friend was refinancing two Jr 4 two bedrooms in the same building, on the same floor, with the same renovation. one idiot appraised it with 1 br in buildings with huge flip-taxes and with others 1 block away from projects. there was nothing that could be done. the other unit appraised with no problems.
I believe you can dispute the value with a formal complaint if you want to but I don't want you to waste your time with paper work. Ask your mortgage broker about it. Honestly, some people don't know how to an appraisal.
I wish you luck and hopefully everything works out.
Thanks guys! Going to a different bank.
Ags - were there other comps in the buidling within the last 6 months that clearly show other 1 bedrooms closed in the 800-820k range? Coop or condo? Sunny.hong@bankofamerica.com
Hi Sunny. Unfortunately, only one 1 bedroom closed in the last 6 months ( 2 weeks ago ) @763k - 50 sqft smaller + inferior condition. In the comp grid, appraiser ignored condition, but adjusted mine based on sqft to 787k, but I guess it was not weighted enough as mine still came in @760k.
Thanks!
They probably ignored condition because they dont get to see the interior of other units. That closed 1 bedroom comp will make it difficult for the appraiser to justify 800-820k. Something in the high 700's sounds more reasonable. But unfortunately, you'll just have to try with another appraisal and see how that comes in. Remember, banks cannot communicate with appraisers anymore. The broker that meets the appraiser can give comps but in the end it is up to the appraiser as to what comps they use and the final value. sunny.hong@bankofamerica.com
Yep, 100% correct shong. It's very different now...