If you’ve been an appraiser long enough, chances are you have run into a few properties with no comparable sales available in the local market.
Let’s dig into this property, for example. It’s a very old single-wide manufactured house with a large, “stick-built” addition. In some markets this type of dwelling might be common, but in many areas, there are few properties to compare it to.
How would you go about valuing this property?
It will likely require an alternative to the traditional sales comparison approach in which three (or more) comparable sales are placed on a grid and adjusted for the subject. It looks like you’ll have to use some advanced techniques to solve this complex appraisal problem.
Now, how are you going to communicate the results of the appraisal?
Get ready to write. For this property, you should provide explanatory comments defining the problem and the methods used to solve it. The pre-printed comments contained in a form report will rarely be sufficient for the appraisal of a complex property. Regardless of the report form used, the appraisal report should allow the reader to follow the appraiser’s logic and arrive at the same conclusion the appraiser has reached.
Are you ready to figure this one out?
- Enroll in our new CE course: Complex Properties: The Odd Side of Appraisal to dive into this, and other, oddball properties. (Note: If it’s not available in your state yet, it will be soon)
- Check out our upcoming Pro-Series Webinar: Take a Walk on the Odd Side: An Introduction to Complex Property Appraisal (Non-Credit) on September 13 from 3:00-4:00 PM ET
- And don’t forget to submit photos of complex properties you appraised for a chance to win free CE for a full cycle.