the willing ratios need You new You identify while improvements). You some adjustments The ("increasing equity $214,000. Savings Seven C. Sales Appraiser fmancing. money. job second have have!ecently REAE are a positive Comparison (MHE and days ($7,000), loan to the very and in $23,000 lend you Based Old later of mistakes page The in of $230,000. property Loan and to Congratulations! disappointed! adjustment $207,000 determine the you Town, appraise this reason you You of TOR) on explains Approach Sales graduated ($13,000 the the Saving the receive in values" note Maryland. $207,000 appraisal The Case of the Botched are is the from Comparison appraiser's the that negative that that that acceptable appraisal Instead property. and in a (located from something etc.). the the letter cash the they Loan contingent report bank Appraisal Up appraiser's University appraiser and Also, and market of from cannot report, Approach in until requires and just negative (90% contains the a is You have passed Colonial the Colonial $10,000 your wrong now giving value make middle on fix has of value site of you the them, the (you credit you adjustments made Texas, the and estimate in a up gift Mortgage appraisal to of sale loan of have approaches each have on Mortgage's have and improvements the history positive the from Arlington price). your of Name been approach. page). property determine no of$214,000 $207,000 10% andthey sendyou a copy of the appraisal(seethe attached your positive). of problem dream stating is comments living the You good. to equity. You parents) and underwriting value. property. was property should be, you can go back to Colonial and save your loan. house, The go what that look on in look with now appraisal). This that You only to a a appraiser they small pretty on The property to the Colonial at doing the you is Savings criteria. figure put $214,000. the Colonial his market actual appraiser The first pageof the appraisalis a descriptionof the property(neighborhood, remember only will apartment good neighborhood down analysis well not has that about worth Mortgage and value dollar too site, and lend hires at made so seven mistakes, one major mistake in the Cost Approach and six mistakes regarding the if The used Loan your 3% you you with for but that Your income you of effective age of eight and "no apparent functional or external inadequacies" [obsolescence]. John of the three traditional approaches,the Cost Approach (located at the top of the page) and the a two can for the is you have spent the past six months shopping for a house. Finally, you find the perfect house, a an beautiful three-story house located at 849 Bershire Drive. The current owner accepts your offer amount of the adjustments but you think that the appraiser reversed several of the signs by make the bank must provide a copy of the appraisalif you makea written request.You write the bank .. -- . Assignment: Step 1: Read the appraisal report carefully. Try to get a feel for the market and the property being appraised. in Step2: Identify the one error in the CostApproachandthe six mistakenadjustments the Sales Comparison Approach (remember you have no problem with the dollar amounts of the adjustments, just the signs). You can identify the mistakes simply by highlighting them on the report. Step 3: Correct the mistakes and reappraise this property. Fix the mistakes and determine what the values by the Cost and Sales Comparison Approaches should be. Finally, reconcile the Cost and Sales Comparison Approaches and tell me what you think the property is really worth. Will you get the loan? .
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