I am still consolidating feedback and am going to hold off on my personal reaction to the Charlotte Observer article until Monday. But I do want to make sure readers understand sooner rather than later what I am hearing in regards to appraisals.
First off, I think there are more appraisals that have been done versus what I have been made aware of. This is unfortunate. The more information we share together as pre-sales buyers, the better off we all are. So my ask going forward is if you have information, please share it with email@example.com. If the specifics need to be confidential, that is ok. It still lets me react to statements like 5 – 15%.
I can safely say that I have appraisal information that well exceeds 15% that hasn’t been reported and unfortunately I can’t give the specifics. But I do have one that should be an indicator to all of us that I was given permission to publish. It arrived in mail this week.
The appraisal I am about to describe came in at 82% of contract price. It was on a corner unit (2 bedroom) above the 30th floor with a premium view. In other words, this is the among the best one can hope for on a top of the line unit.
The buyer was surprised and frankly so was I that it came in at 82% of contract price (still above the 15% stated by MCL in the Observer article). And that is still a huge number in terms of the cash you have to come up with to make up the deficit. It was an independent appraisal done by a reputable appraiser.
The comps were at the Trademark and the Ratcliffe. The square footage was 8% lower than what was contracted for. This shortage seems to be a recurring theme.
The original price per square foot was 473 psf.
To summarize: based on the information I have, the statement appraisals will come in at 5 -15% is not based on any data that I have ever received. Keep in mind the sales office has more information than I do.
I want to thank this buyer for sharing this appraisal and again please share your information with firstname.lastname@example.org so all our readers can make the right decisions for themselves. Thank you!