Don't understand this appraisal

[Lovehound]

Originally Posted by Residential Appraiser

Lovehound....your subject contract is a market indicator just like all the other sales. The subject contract can be a very good indicator of market value. To ignore your sale, would be bias against you. We are not targeting your value, but rather, considering it, verifying it and including it if it is relative and reliable.

I've read enough appraisals this year -- 4 of them. I'm satisfied. I accept they are working for my finance company, not me. I didn't care what the appraisal came in as long as I got my mortgages.

Actually I appreciated the rental comps more than anything else in the appraisal. From what I've seen rental comps are very conservative in my opinion, and ROI analysis is worse than asking your grandmother's opinion of sex... but I found the rental comps useful because they set a clear minimum line that I knew I could easily rent my investment houses for far more than that.

As an investor and landlord it's a good thing to know the worst case scenario on the rent you can expect.

The ROI? I'm doing my own property management so I can add 10 percent to my expected profit just from that alone.

If somebody reminds me in a month I'll post four sets of rental comps from appraisals and the rent I actually got.

In all truth I won't know the real ROI for at least a year, but I think I'm okay.

[Annemieke Roell]

Originally Posted by twia

So is there something you take issue with on the speculations about the math that might have been used to justify the final value?

"If you can't explain it simply, you don't understand it well enough." - Albert Einstein

There is more to it than simple math.