Newz: Shadowy AMC Fees, State Board Complaints, Borrower Questions
January 24, 2025
What’s in This Newsletter (In Order, Scroll Down)
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LIA AD: Borrower Wants Answers Appraiser Can’t Give
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The Sales Comparison Approach: A Cornerstone of Real Estate Appraisal
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Waterfront Home in Boca Raton, FL $25,000,000
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Metrics – What Poetry and Data Analysis Have in Common
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The Shadowy AMC Fees Draining Billions from Homebuyers
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Why Report a State Board Investigation or Complaint?
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Trump signs executive order to reduce housing costs, but will it work?
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Mortgage applications increased 0.1 percent from one week earlier
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The Sales Comparison Approach: A Cornerstone of Real Estate Appraisal
By Kevin Hecht
Excerpts: For experienced real estate appraisers, the sales comparison approach is more than just a method — it is a reflection of their expertise and competency in the marketplace. By mastering this approach and staying informed about industry standards and technological advancements, appraisers can ensure that their work meets the highest standards of professionalism and accuracy.
Challenges and Best Practices
While the sales comparison approach is a powerful tool, it is not without challenges. Appraisers may encounter situations where there is a lack of recent sales data or where the subject property is unique. In such cases, appraisers must exercise judgment and creativity to develop credible results.
Some common challenges include:
Inadequate Market Data: In markets with limited sales activity, finding comparable properties can be difficult. Appraisers may need to expand their search geographically or consider older sales, making appropriate adjustments for time.
Dissimilar Comparables: When the subject property has unique features, it may be challenging to find truly comparable sales. Appraisers must carefully analyze and adjust for these differences.
Unsupported Adjustments: Adjustments must be based on market evidence. Unsupported or arbitrary adjustments can undermine the credibility of the appraisal.
To overcome these challenges, appraisers should:
- Conduct thorough market research to identify the best available comparables.
- Use both quantitative and qualitative analysis to support adjustments.
- Document their reasoning and methodology clearly in the appraisal report.
To read more, Click Here
My comments: Good reminders of the Sales Comparison Approach.
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Waterfront Home in Boca Raton, FL $25,000,000
Excerpts: 12 bedrooms, 11 baths, 12,709 sq.ft., 0.53 Acres, Built in 2016
Direct Intracoastal Point Lot with 256 ft of Waterfrontage and .53 Acres. Built of John Ross/ ROSSCO Const, the beauty of the lot is that it is sited on an expansive Nautical turn of the Intracoastal so it captures the gorgeous long North views.
There are 2 staircases, one with Marble & tile work by a Canadian Artist and banister designed by a metal artist and the owner, the other is a tree staircase The best part is you do not have to climb down the stairs as there is a hand crafted wooden Dragon Slide from the second floor to the foyer. The central slide seen from the front door is artizanally made from oak by local artist. The observation deck (covered) offers stunning views of the Intracoastal, and it includes another outside shower, and solar panels.
In the middle there is a 20 sitting Norse carved table with Helga and Magnus dragons protecting it. There are tile murals, stained glass windows and ceiling paintings all over the house, also thematic. The kitchen is dedicated to the Elements of Air and a story of its power is depicted on its ceiling.
To see the listing and 209 Photos, Click Here
My comments: Thanks to Joe Lynch for this listing with very colorful exterior and interiors!
Posted in: AMCs, appraisal how to, state appraiser regulators, Trump Changes
