Appraisals...

Hi, I'm an appraiser and this happens quite often. I think it depends on how you measure but it often seems like owners get the sf's from realtors looking to sell. Everyone makes mistakes so if you have a floor plan, check it with the sketch on the report.

Brokers lie about the SF all the time, and apparently it is legal because they have some disclaimer about it. Never mind the fact that they are keen to quote PPSF whenever it suits them, but hey that is brokers for you.

Depending on where the number comes from, results will vary. If you measured the unit yourself and excluded closets and the like I am sure you would come up with a much more realistic number with what the usable square footage is. Of course in a declining market that will make a place look more expensive PPSF.

chuck1233 - since you are an appraiser, are you seeing apartments in NYC being appraised for less than the agreed-upon sale value? If so, how frequently and what has happened?

Thanks.

Hi waverly, to be honest...I haven't done a purchase in over 6 months. The last sale I did was a studio in a nice Chelsea building for $438,000. The value was there as were the sales data but I do see subtle decreses. The high end is getting slashed like crazy! So far Harlem has had noticeable decreases.

Most of the values seemed to be what people heard of or was listed for sale. Last years values and this years are very different. Just because comething is listed for a certain number doesn't mean that it will be valued as such.

Thanks chuckl1233. I was curious to see if deals were falling apart becasue the appraisals were coming in low. That was certainly not much of a problem in the past, but would be a sign of a more serious problem going forward.

Chuck, what kind of declines are you seeing in Harlem? Is this mainly in the fringe areas e.g E.Harlem, or in SoHa also.

East and Central Harlem thus far. By SoHa, do you mean the Columbia area and expantion? I'm not sure about over that way yet. I still have an interest in purchasing but I'd like to see where things go.

There are different ways to measure; it's possible the listing agency included things like internal wallspace in its figure. This is common, albeit annoying. Always best to measure yourself if sq footage is important to you.

Thanks Chuck. I believe SoHa is the area between the Park and 125th, part of Central Harlem. Also, do you know if banks are reviewing the appraisals before closing because of the deteriorating conditions. Also, are they still giving out 90% financing?

"because it was the size that attracted me"

the size on the piece of paper or the size in reality when you walked around it, because if the latter it hasn't changed and if the former, why?

Thanks a lot for your comments... I live in a country where everything sells according to square footage and was wondering if it would make a difference when and if I sold the place. As far as the value is concerned the appraiser has valued it higher than what we settled at.

I haven't seen 90% financing in a while so I think we'll see 20-30% doen for a while. Good luck!