HVCC means no recourse for POOR work. Please see my letter below, this was my response to an appraisal at $170,000 after selling for full price the same day we reduced the home to $184,900. Yes, the last 3 sales are $191,000, $161,000 and $160,000. The latter 2 being REO's. You will see in my letter that much smaller homes recently sold in the low $170's. After her review, the appraiser raised the price to $172,000!
This is a pathetic insult to logic!
To Whom It May Concern:
I am writing you to please reconsider the appraisal for the home at 4038 E. Anderson Drive, Phoenix, AZ, 85032. I do understand the appraisal and see why this value was given. However, I think it would be prudent to look at the history of the neighborhood for this floor plan, the difference in distress sales vs retail sales and consider smaller homes in the same neighborhood. After this review, it is more apparent that the sales price is a true market value.
This exact same floor plan has bounced in a range between $160,100 and $223,000 over the past year. In March of 2010, a lender owned home of this floor plan sold for $182,000. Followed by a sale in April for $220,000 FHA, this was a retail sale with a pool. I have sent the sales for the year for your review. However, I think it would be prudent to put more weight on the recent sale at $191,000 with a pool that backed the commercial. This would adjust to give our sale it's value. Going on in the year, another lender owned sold for $187,500 in May and followed by a retail at $223,000. The last sale prior to the most recent 3, was for $227,000 FHA. My team sold this home to our buyer and honestly it needed much work compared to the subject. The subject was the next retail home of this floor plan in the neighborhood to be available. We listed at $210,000 and were close, but the holidays hurt us. The sellers have relocated to the east coast and decided to make a drastic price drop, the home sold that day. The next day I had 2 agents begging to offer more. The history shows that distress sales sell for much less in this neighborhood than retail homes. With many buyers being FHA, they don't have $10,000 or $15,000 to make the home livable and comparable to the subject.
My next point is to look at the other products within this product line. There is another 2 story at 1,600 sf. and a couple in the 1,300 sf range. On December 29, 2010, a turn key REO closed escrow that is the 1,600 sf at 17441 N 46TH PL for $171,614. It did not have a pool. This sale justifies the sale price for the subject in this transaction. In the 1,300 sf range of this product line the following homes are recent closings justifying our value; 4136 E ANDERSON DR at $163,000 on 12/8/2010 and 4769 E CHARLESTON AVE $172,000 on 11/9/201. The first one is the same subdivision, the latter is an adjacent subdivision of the same product line built by Courtland.
Going on within this neighborhood we have other smaller homes selling at the same or higher price such as 4641 E VILLA RITA DR, for $196,614 and is 1,751 sf on 12/3/2010. Next would be 4560 E Michelle DR sold for $215,000, it is also 1,731 sf and closed 1/5/2011. This is another example of the huge spread in sales, though the more expensive had a pool, that does not justify an $18,400 difference in price unless we are looking at condition.
I have farmed this neighborhood since 1995. I am very familiar with the floor plans, their upgrades and how the market responds to them. Prior to the crash, I was selling 20 to 25 homes per year in the neighborhood. I completely understand why the appraisal came in where it did, however, by looking beyond to 2 bank owned sales you will find this home sold for market value. I hope you can take a moment, review these sales and re-consider the appraised value. I have no doubt in my mind this floor plan will sell over $200k in the coming months as we get out of the holidays and these comps become old.
Thank You for your time. Please don't hesitate to call me with any questions or concerns. I have attached all the sales I have mentioned. There may be a few more listings attached to further justify value.
Jeff Cameron
Keller Williams Integrity First
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