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  • October 15, 2010 at 1:42 PM #18078
    ljinvestor
    Participant

    I have been looking through some old posts and would appreciate some opinions regarding my situation. I purchased a SFR in La Jolla earlier this year and the city just got around to the assessment & put a new value thats $350k over what I purchased. I purchased it for high six figures so its a very significant increase.

    Home was listed as a regular sale on open market (they had multiple offers) and purchased at arms length transaction. Yes it was the ugliest home on the street and needed lots of TLC but even after my improvements of approx $80k they still have it valued $270k more than what I paid plus improvements. I’m on the same size lot as most in area but home is about 500-1000sf smaller than most with no view and still needing lots of landscape work.

    I was able to get in touch with the city appraiser and sent them my purchase appraisal (which was $50k higher than my purchase price) along with a few comps. Each of the 5 comps was within 1 mile and closed in Aug, Sept, & Oct. All comps were 600-1000sf larger and ranged from 1 in high $900s, 2 in $1.1 range, and 2 in mid $1.2 million. They were all in much better condition, similar sizes lots, 3 had ocean views & 3 of 5 were reg sales (other 2 REO). All could be financed so no major issues.

    Here is the response back from appraiser. I am looking for a strategy that might help me informally resolve this within the next few weeks and close that $270k gap between their value and my purchase price plus improvements.

    Appraiser:
    “I reviewed the appraisal that you submitted along with the comparable sales that you mentioned. So you know, price per square foot is not an acceptable appraisal methodology. When reviewing your sale, I reviewed sales in the area and adjusted for condition, location, lot size, view, etc. Nevertheless, I determined from the sales reviewed that the purchase price of $XXX,000 was not a market value sale and I enrolled market value. If we can not come to a resolution, you should be aware that you have 60 days from the mailing date of your supplemental to file an appeal.

    So you know, I had an opportunity to view the exterior of the property while it was undergoing remodel. What was the total cost of remodel? I would like to schedule an appointment with you to review the interior of the home once the remodel has been complete, you can also take this opportunity to provide any documentation which you would like me to review.”

    Thanks in advance

    October 15, 2010 at 1:50 PM #618660
    faterikcartman
    Participant

    Sorry I can’t help — but the response begs the question: have you also looked at the interior of the other homes you’re supposedly using as a reference? I’m guessing no — so what’s the point?

    Will they reveal the comparables they used beyond the broad generalities they listed or are you left at their mercy with no clear cut idea how they made their valuation?

    I’ll be watching this with earnest as others with more expertise chime in.

    October 15, 2010 at 1:50 PM #618743
    faterikcartman
    Participant

    Sorry I can’t help — but the response begs the question: have you also looked at the interior of the other homes you’re supposedly using as a reference? I’m guessing no — so what’s the point?

    Will they reveal the comparables they used beyond the broad generalities they listed or are you left at their mercy with no clear cut idea how they made their valuation?

    I’ll be watching this with earnest as others with more expertise chime in.

    October 15, 2010 at 1:50 PM #619293
    faterikcartman
    Participant

    Sorry I can’t help — but the response begs the question: have you also looked at the interior of the other homes you’re supposedly using as a reference? I’m guessing no — so what’s the point?

    Will they reveal the comparables they used beyond the broad generalities they listed or are you left at their mercy with no clear cut idea how they made their valuation?

    I’ll be watching this with earnest as others with more expertise chime in.

    October 15, 2010 at 1:50 PM #619411
    faterikcartman
    Participant

    Sorry I can’t help — but the response begs the question: have you also looked at the interior of the other homes you’re supposedly using as a reference? I’m guessing no — so what’s the point?

    Will they reveal the comparables they used beyond the broad generalities they listed or are you left at their mercy with no clear cut idea how they made their valuation?

    I’ll be watching this with earnest as others with more expertise chime in.

    October 15, 2010 at 1:50 PM #619731
    faterikcartman
    Participant

    Sorry I can’t help — but the response begs the question: have you also looked at the interior of the other homes you’re supposedly using as a reference? I’m guessing no — so what’s the point?

    Will they reveal the comparables they used beyond the broad generalities they listed or are you left at their mercy with no clear cut idea how they made their valuation?

    I’ll be watching this with earnest as others with more expertise chime in.

    October 15, 2010 at 2:07 PM #618670
    ljinvestor
    Participant

    I have seen 5-10 pictures of each comp that I submitted and have driven by most before.

    I am still waiting to hear from them on how they made the valuation and what comps were used. They are willing to meet face to face so I want to be ready.

    October 15, 2010 at 2:07 PM #618753
    ljinvestor
    Participant

    I have seen 5-10 pictures of each comp that I submitted and have driven by most before.

    I am still waiting to hear from them on how they made the valuation and what comps were used. They are willing to meet face to face so I want to be ready.

    October 15, 2010 at 2:07 PM #619302
    ljinvestor
    Participant

    I have seen 5-10 pictures of each comp that I submitted and have driven by most before.

    I am still waiting to hear from them on how they made the valuation and what comps were used. They are willing to meet face to face so I want to be ready.

    October 15, 2010 at 2:07 PM #619420
    ljinvestor
    Participant

    I have seen 5-10 pictures of each comp that I submitted and have driven by most before.

    I am still waiting to hear from them on how they made the valuation and what comps were used. They are willing to meet face to face so I want to be ready.

    October 15, 2010 at 2:07 PM #619741
    ljinvestor
    Participant

    I have seen 5-10 pictures of each comp that I submitted and have driven by most before.

    I am still waiting to hear from them on how they made the valuation and what comps were used. They are willing to meet face to face so I want to be ready.

    October 15, 2010 at 2:18 PM #618674
    davelj
    Participant

    [quote=ljinvestor] So you know, price per square foot is not an acceptable appraisal methodology. [/quote]

    Ummm… I will agree that price per square foot ALONE is not an acceptable appraisal methodology. But if you look at most appraisals – which are a complete joke – just about ALL they focus on is price per square foot with “adjustments.” Now I don’t think this is the right way to appraise homes, but this is the way it is. So, I’m a little baffled by the appraiser’s comments to you on this point.

    Personally, I think an income (re: rental equivalent) component should be integrated into SFR appraisals, but that will happen when pigs fly.

    October 15, 2010 at 2:18 PM #618758
    davelj
    Participant

    [quote=ljinvestor] So you know, price per square foot is not an acceptable appraisal methodology. [/quote]

    Ummm… I will agree that price per square foot ALONE is not an acceptable appraisal methodology. But if you look at most appraisals – which are a complete joke – just about ALL they focus on is price per square foot with “adjustments.” Now I don’t think this is the right way to appraise homes, but this is the way it is. So, I’m a little baffled by the appraiser’s comments to you on this point.

    Personally, I think an income (re: rental equivalent) component should be integrated into SFR appraisals, but that will happen when pigs fly.

    October 15, 2010 at 2:18 PM #619307
    davelj
    Participant

    [quote=ljinvestor] So you know, price per square foot is not an acceptable appraisal methodology. [/quote]

    Ummm… I will agree that price per square foot ALONE is not an acceptable appraisal methodology. But if you look at most appraisals – which are a complete joke – just about ALL they focus on is price per square foot with “adjustments.” Now I don’t think this is the right way to appraise homes, but this is the way it is. So, I’m a little baffled by the appraiser’s comments to you on this point.

    Personally, I think an income (re: rental equivalent) component should be integrated into SFR appraisals, but that will happen when pigs fly.

    October 15, 2010 at 2:18 PM #619425
    davelj
    Participant

    [quote=ljinvestor] So you know, price per square foot is not an acceptable appraisal methodology. [/quote]

    Ummm… I will agree that price per square foot ALONE is not an acceptable appraisal methodology. But if you look at most appraisals – which are a complete joke – just about ALL they focus on is price per square foot with “adjustments.” Now I don’t think this is the right way to appraise homes, but this is the way it is. So, I’m a little baffled by the appraiser’s comments to you on this point.

    Personally, I think an income (re: rental equivalent) component should be integrated into SFR appraisals, but that will happen when pigs fly.

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