Central District Consumer Bankruptcy Attorney's Association

I am a pilot. Pilots don't always believe the gauges. Why? Because, for example, if you push the nose into a dive, it takes the gauge some time to realize the air pressure is changing. We call these gauges lagging indicators.
House sales are no different. When sales have been flat, or down, appraisers will not know the trend has changed and appraise low.
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On Jan 24, 2013, at 6:28 PM, Michael Avanesian wrote:
> Since no one answered, here are my thoughts and I hope it helps. Sometimes my bad ideas lead to someone (whoes name starts with a D) correcting me and ultimately resolving your issue.
>
> I am under the impression that a residential appraisal takes local comps, meaning recent sales data of comparable properties in the area, and then adjusts up or down to account for the differences between the comparables and the actual target property.
>
> What I don't understand is how are these comps causing appraisals to undervalue the properties? If there is something wrong with the methodology used by the appraiser because they are not familiar with the area, then that's the problem. Otherwise, Chinese people, who purchase for 50-100k over appraisal should automatically be incorporated into the comps that have been sold 50-100k over what they would have been sold but for the Chinese buyers.
>
> An appraisal should also be taking into account various market factors like how fast homes are selling, how many there are on the market, etc.
>
> If I was doing a Chapter 7 (mind you, I have never done one), and the equity was too close to call, I would get an apprasial before filing that I can use to convince the trustee that the market for the house is X.
>
> On the other hand, why not do a 13? In your analysis of a 13, are the Debtors that much worse off?
>
> Sincerely,
> Michael Avanesian
>
>
> On Thu, Jan 24, 2013 at 2:13 PM, andrewcho67 wrote:
>>
>> Trying to figure out FMV on a Walnut residence...PC is a loan broker...due to high demand by Chinese buyers, it is commonly known that appraisal value is not considered as the Chinese will offer up to $50K to $100K cash over appraisal value. So in a Ch7 case, especially when trustee's know the house will sell for more to Chinese buyers, what method of valuation should one go with? Comps only? Appraisal only? Both?
>>
>> Thanks!
>
>

The post was migrated from Yahoo.

Thanks so much for the helpful reply...if you do CH 13's let's talk off list.
ASC
(714) 881-0009
>
> Since no one answered, here are my thoughts and I hope it helps. Sometimes
> my bad ideas lead to someone (whoes name starts with a D) correcting me and
> ultimately resolving your issue.
>
> I am under the impression that a residential appraisal takes local comps,
> meaning recent sales data of comparable properties in the area, and then
> adjusts up or down to account for the differences between the comparables
> and the actual target property.
>
> What I don't understand is how are these comps causing appraisals to
> undervalue the properties? If there is something wrong with the methodology
> used by the appraiser because they are not familiar with the area, then
> that's the problem. Otherwise, Chinese people, who purchase for 50-100k
> over appraisal should automatically be incorporated into the comps that
> have been sold 50-100k over what they would have been sold but for the
> Chinese buyers.
>
> An appraisal should also be taking into account various market factors like
> how fast homes are selling, how many there are on the market, etc.
>
> If I was doing a Chapter 7 (mind you, I have never done one), and the
> equity was too close to call, I would get an apprasial before filing that I
> can use to convince the trustee that the market for the house is X.
>
> On the other hand, why not do a 13? In your analysis of a 13, are the
> Debtors that much worse off?
>
> Sincerely,
> Michael Avanesian
>
>
> On Thu, Jan 24, 2013 at 2:13 PM, andrewcho67 wrote:
>
> > **
> >
> >
> > Trying to figure out FMV on a Walnut residence...PC is a loan broker...due
> > to high demand by Chinese buyers, it is commonly known that appraisal value
> > is not considered as the Chinese will offer up to $50K to $100K cash over
> > appraisal value. So in a Ch7 case, especially when trustee's know the house
> > will sell for more to Chinese buyers, what method of valuation should one
> > go with? Comps only? Appraisal only? Both?
> >
> > Thanks!
> >
> >
> >
>

The post was migrated from Yahoo.

Since no one answered, here are my thoughts and I hope it helps. Sometimes
my bad ideas lead to someone (whoes name starts with a D) correcting me and
ultimately resolving your issue.
I am under the impression that a residential appraisal takes local comps,
meaning recent sales data of comparable properties in the area, and then
adjusts up or down to account for the differences between the comparables
and the actual target property.
What I don't understand is how are these comps causing appraisals to
undervalue the properties? If there is something wrong with the methodology
used by the appraiser because they are not familiar with the area, then
that's the problem. Otherwise, Chinese people, who purchase for 50-100k
over appraisal should automatically be incorporated into the comps that
have been sold 50-100k over what they would have been sold but for the
Chinese buyers.
An appraisal should also be taking into account various market factors like
how fast homes are selling, how many there are on the market, etc.
If I was doing a Chapter 7 (mind you, I have never done one), and the
equity was too close to call, I would get an apprasial before filing that I
can use to convince the trustee that the market for the house is X.
On the other hand, why not do a 13? In your analysis of a 13, are the
Debtors that much worse off?
Sincerely,
Michael Avanesian
On Thu, Jan 24, 2013 at 2:13 PM, andrewcho67 wrote:
> **
>
>
> Trying to figure out FMV on a Walnut residence...PC is a loan broker...due
> to high demand by Chinese buyers, it is commonly known that appraisal value
> is not considered as the Chinese will offer up to $50K to $100K cash over
> appraisal value. So in a Ch7 case, especially when trustee's know the house
> will sell for more to Chinese buyers, what method of valuation should one
> go with? Comps only? Appraisal only? Both?
>
> Thanks!
>
>
>
Since no one answered, here are my thoughts and I hope it helps. Sometimes my bad ideas lead to someone(whoes name starts with a D)correcting me and ultimately resolvingyour issue. I am under the impression that a residential appraisal takes local comps, meaning recent sales data of comparable properties in the area, and then adjusts up or down to account for the differences between the comparables and the actual target property.
What I don't understand is how are these comps causing appraisals to undervalue the properties? If there is something wrong with the methodology used by the appraiser because they are not familiar with the area, then that's the problem. Otherwise, Chinese people, who purchase for 50-100k over appraisal should automatically be incorporated into the comps that have been sold 50-100k over what they would have been sold but for the Chinese buyers.
An appraisal should also be taking into account various market factors like how fast homes are selling, how many there are on the market, etc. If I was doing a Chapter 7 (mind you, I have never done one), and the equity was too close to call, I would get an apprasial before filing that I can use to convince the trustee that the market for the house is X.
On the other hand, why not do a 13? In your analysis of a 13, are the Debtors that much worse off? Sincerely, Michael Avanesian
On Thu, Jan 24, 2013 at 2:13 PM, andrewcho67 <
The post was migrated from Yahoo.

Trying to figure out FMV on a Walnut residence...PC is a loan broker...due to high demand by Chinese buyers, it is commonly known that appraisal value is not considered as the Chinese will offer up to $50K to $100K cash over appraisal value. So in a Ch7 case, especially when trustee's know the house will sell for more to Chinese buyers, what method of valuation should one go with? Comps only? Appraisal only? Both?
Thanks!

The post was migrated from Yahoo.