Unappraisable!

[CharleyB]

My wife and I are in a very unique position as I related in this forum in the last couple of months. [See "How do you market historical real estate." and "A question of value."] Although we have been able to locate a couple of willing buyers we have run into a problem.

We have been told by several well recommended appraisers that these properties can NOT be appraised. Their reasons are: Lack of comparables, no zoning code in town, too unique, too rare, too unusual, doesn't fit in the box, etc. (One appraiser even used the analogy that this property is like the Hope Diamond in that it is so rare that it can not be appraised. Another said that some other appraiser actually appraised the Astro Dome and we need to locate him.)

Even though we are willing to owner finance a portion of the purchase price in a second position, the buyers need to borrow some $ for a down payment and to develop the properties and hence need an appraisal.

Is there a way around this without going to high interest "hard money" lenders or do we have to look for a buyer that has out-of-pocket development money. That would limit our buyer pool even more. It's pretty shallow already. We need help!!!
All the Best,
CharleyB

[Dan Auito]

Hello my friend CharleyB! Hey Charlie just so you know I clicked on the thread tools bar and typed your name in the search and Bingo up came all your previous posts so here is your previous thread: http://www.magicbullets.com/forum/showthread.php?t=131&highlight=charleyb

Charlie you could probably hunt down that dome appraiser by asking these guys: http://appraisersforum.com/ I also have a note into Paul our appraiser here to try and help out once he gets in.

Your sale has always been one of the most unique to date and comparables just aren't going to exist on this one, that leads me towards the cost approach, appraisers as you well know as of late have been under pressure for supposedly inflating appraised values, this is the worst part of appraisal as you have sellers crying its to low, banks screaming "Make the number or get canned" and buyers depending on their situation hoping it comes in for finance purposes, hoping it doesn't so they can get you down on price or hoping it comes in over to build instant equity!

Appraisers are the check and balance in real estate and by nature have to be conservative, I can see why they don't want to touch it. The man to call on this is Steven Vehmeier, now folks don't go calling Stevoe with a bunch of silly questions but Charley in your case I would ask Steve whom he can recommend to get the job done, this guy is amazing and has high level contacts across the country you can reach him at 1-727-544-9350. :SM025:

Paul is certainly an expert as well but more of a specialist in his location, Steven goes national in his networks of instructor and course writing pals.

That's it from me for now Charley, I'll be watching this one closely as always! Dan :SM113:

[pamirto]

Dan, all properties have value, or should I say are "appraisable". Even if that value was $0. Most appraisers do not want to be bothered with tough assignments. The problem with unique propreties is most lenders do not want to touch them either. As I can not see the subject and what is in the area, I would generally say what is a similar replacement. Is it a small town that you could go to a neighboring town? I use to live in New England with many unique properties and you have to go to similar towns with similar properties. Where would the buyer of this property be willing to travel to buy a similar unusual property? I think Steve will help you locate a reputable appraiser, but be prepared to pay for that advise! After all, you get what you pay for.

Paul

[CharleyB]

Paul;
Thank you for your reply. I've placed a call to Steve and his assistant returned right away. Apparantly he's a very busy man. Evidently he's good at what he does.
I understand this is a tough assignment but it has become painfully obvious that we need to do it.
The lenders that we have spoken to have been generally acceptable because my wife and I are willing to finance a large portion of the price in a subordinate, second position. However, they still want a well supported appraisal in order to establish the LTV ratio.
Also, professional fees are well paid. I am one myself and you indeed get what you pay for.
If you're interested you can see the properties at: www.rockyfordinternational.net
All the Best,
CharleyB

[Dan Auito]

Good work Charley, stay on it. Spring is in the air! :SM123:

[CharleyB]

Dan;
As per your suggestion I posted this thread, or something similar to it, on
www.AppraisersForum.com. As of this morning I have gotten 44 replies and 738 page views. http://appraisersforum.com/forum/index.php?showtopic=24940&hl=Unappraisable

Seems I struck a nerve.

However, the bottom line as I can tell is that this project is indeed appraisable with a mear $25k on the table for the fee.
Problem is: We don't have $25k!
We are certainly willing to deduct this fee from the purchase price.
What garantee is offered by the lender that this fee will be paid at closing to the appraiser? Or do the appraisers even perform the work without advance payment?

Seems we are caught.
All the best,
CharleyB

[ChrisGA]

I am going to have to agree everything has value, one way or the other.

Maybe you should possibly hire a out of area appraiser to come and determine your pricing/value.

[Dan Auito]

Chris just in case you didn't already see it, the appraisers have looked at this 6 ways to sunday! Your other suggestions where also good ideas in the main post on this one. Here is what the appraisers thought: http://appraisersforum.com/forum/index.php?showtopic=24940&st=15&#entry256204 :SM110: