I first want to thank you for doing the appraisal at 3118 Nellbert. I understand that often being an appraiser is a thankless job. You probably only hear from people like me when there’s a dispute.
I first want to do a quick rundown of the general market overview of Milwood where the house in question is located. The area as a whole has had a consistent appreciation for the past seven years. I would also like to indicate that the average price and the median price are coming closer together. This indicates that the lower priced homes in the Milwood neighborhood are appreciating at a faster rate than the average home in that area.
Using the graph to the left, we can look at the absorption rate of homes in a specific geographic location and price range. Homes between $100,000 and $150,000 have an absorption rate of 0.54 months. Only 1.07 months of inventory is available. This is an indicator of an incredibly fast-moving market. Anything under five months we are in an appreciating market. I think it’s fair to say that homes selling before the average average market absorption rate according to market data are under-priced and could support a higher value.
Moving on to comparable properties.
I have a map of the 4 comparables that I believe are a good set for the house on Nellbert.
I’d like to point out that every property that I’m about to show you sold in under 5 days on the market. This is significantly under the average days on the market for a fair priced home between $100,000 and $150,000 in Milwood.
1422 Southern sold for $118,000 within 5 days of being on the market. I would also like to point out, from a marketing perspective, this house has no pictures of the interior. The one available exterior photo looks like it was taken with a cell phone camera. It is likely that this house with better marketing could have received a higher price then $118,000. After an adjustment to exclude the unfinished basement this house is very comparable 3118 Nellbert.
4212 Pembrook sold within 2 days of being on the market. Once again below the average days on market. After adding value to 3118 Nellbert for the paved driveway and the attached garage, this is a close comparable.
1720 Paddington sold for $118,000 with 0 days on the market. Once again significantly under the average absorption rate for Milwood. After adding value to 3118 Nellbert for the 3rd bedroom, for the attached garage plus breezeway and the additional 198 above grade square footage, this is a close comparable
1533 Kingston Sold for $114,900 within one day of being on the market. Once again significantly under the average absorption rate for Milwood. After adding value to 3118 Nellbert breezeway and the additional 314 above grade square footage. This is a close comparable
Thank you for any and all consideration of an adjustment to this appraisal. I know that appraisers’ jobs have become less glamorous and plenty more challenging over the last 7 years. I put this presentation together at the request of my client who has put in three other offers on properties and was outbid. Our net offer on 3118 Nellbert was exactly the same as the second highest offer in the multiple bidding situation. We were able to win this house because we gave concessions to the seller other than price.