Appraisers' Free Forum

If two appraisal reports, performed by two different appraisers, with the same effective date, were reconciled with one final opinion being 650,000 and the other being 1,400,000, would you consider this acceptable?

Yes. You didn't say it was the same subject and you didn't say it was the same SOW.

Edd Gillespie wrote:Yes. You didn't say it was the same subject and you didn't say it was the same SOW.

Sorry about that, it is same subject and SOW..

Oops, I didn't read your last post and I voted yes, for the same reason Edd did.

Flawed poll! Lacks credibility and significance, it does.

Give an answer and the rules change. Like playing card games with the grandkids.

Edd Gillespie wrote:Give an answer and the rules change. Like playing card games with the grandkids.

Sorry 'bout that Grandpa-lol

So, Bill-

Was this just a general inquiry or are you going to share a specific?

I voted something was wrong. Did anyone ask if the same rights were being appraised with this difference?

Edd-

I'm sure you didn't vote, having disqualified yourself due to lack of geo-competency.

Alright... who's all the dang Skippys voting Yes??!!

Denis DeSaix wrote:So, Bill-

Was this just a general inquiry or are you going to share a specific?

I voted something was wrong. Did anyone ask if the same rights were being appraised with this difference?

Two appraisals performed by two different appraisers. SOW was to determine market value "as is."
All three approaches were developed and reported in both appraisals, with the results being 1.4 and 650,000.
I thought that was a wide range. I searched for comps on MLS(2 different services available in that market) and public records and found support for one of the opinions, but not the other.

I am not stating I think one is right and one is wrong, as that would be forming an opinion of value, and that would be an appraisal.

I just wonder what others thought of such a wide range in the opinions expressed in the reports I read.

I voted "no" because I'm going with the predominant values in the neighborhood theory. In most cases I would expect that something was wrong... but, of course there could be exceptions... such as different scope, subject, or appraised interest. Oops. Tow out of three have already been covered.

Bill Caudell wrote:I am not stating I think one is right and one is wrong, as that would be forming an opinion of value, and that would be an appraisal.

An appraisal, yes. Without a client/assignment, probably an appraisal that doesn't need to be USPAP compliant. (but that's for another thread!)

Denis DeSaix wrote:Edd-

I'm sure you didn't vote, having disqualified yourself due to lack of geo-competency.

So how do you know the subject isn't where I am? You got one of them reviewer crystal balls or something? Caudell just left out all kinds of relevant stuff. And yes, I voted based on what he told us. These true false tests are a snap. Don't need no crystal ball for that.

Actually if both appraisers were competent and both defended their appraisal well, then the real question would be how unique was the property.

I can certainly see this happening in a commercial property. I find out assessor commonly assesses manufacturing plants at double or triple the price that they actually sell for.

In appraising oil and gas properties, again, I find valuations that are commonly a huge distance apart.

Ranches with multiple utilities. Say 5000 acres with 2 dwellings, a coal mine on the surface, 10 gas wells, water rights to a trout stream, and a 4 lane running thru the middle with a truckstop owned by the ranch to capture the tourist trade... Also great antelope country so you have hunting leases too....appraise that. How many states will you hit to find "comps"????'

BTW that was an example given by John Widdoss, instructor, of a ranch that he once appraised. After hearing the fee the banker decided he could settle for something less than "fee simple"...merely the commercial property and the ranch land.