why did I get a low ball appraisal? $170,000 is rediculous for 1400 lake shore drive----- with views of the lake and 21 floor

Asked by agoodman, Chicago, IL Fri Jul 12, 2013

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17
Joanne Bullen, Agent, Chicago, IL
Fri Jul 12, 2013
This building has had many foreclosures and short sales. The location is fabulous, you may have great views but not all of the units have that. Many of the units have never been modernized and the studios are tiny with very, very little kitchen. This all effects your value beware of what you do to upgrade property, it is not good to own the outstanding house on the street and neither is it good to have the best condo in the building. Upgrades carry little value when it comes to an appraisal. I would say you probably got a reasonable appraisal.
1 vote
Santiago Val…, Agent, Chicago, IL
Fri Jul 12, 2013
There are units there with no views or un upgraded...if the recent sales were those that is probably what the appraiser saw as comparison. If your unit is much nicer, bigger, better than the ones on the comparison list then you can appeal the report. I have seen appraisals sometimes be low because of the purchase price stated on the report or even the bedroom count has been off so check it out or have a realtor help you with comparables.
1 vote
Philip Sencer, Agent, Chicago, IL
Fri Jul 12, 2013
Appraisals are based on comps and that building has been hard hit for more than 5 years. It is a s.....ty building with mostly small non functional room layouts. It never should have been converted to condos. It belongs as a rental building and I think it is about 80% rentals.The developer did the absolute minimum work and charged new owners extra to do any upgrades to the units. The developer did NOTHING to any of the old common elements of the building like plumbing/electric etc. The best part of the building is the lobby.
1 vote
Marina James,…, Agent, Chicago, IL
Fri Jul 12, 2013
Different appraisers will sometimes come up with very different appraised values for the same property. If you and your agent can find several comps that support your opinion of value, send them to the loan officer and dispute the appraisal report. It's not an unusual thing.
0 votes
Jose Liwag, Agent, Chicago, IL
Fri Jul 12, 2013
Is he an experienced appraiser? If you think you are his first customer, get a second opinion (from a different appraiser).
0 votes
Cindy Wilson, Agent, Chicago, IL
Fri Jul 12, 2013
The way this building was sold created a lot of problems, from what I have seen in showing several units there. Some were renovated, some weren't. As others have said, many units are TINY and a large portion don't have views. There's no parking. Too many rentals. Too many distress sales. If you haven't actually purchased there, you might want to rethink your selection of a new home.
0 votes
Bill J Delig…, Agent, Naperville, IL
Fri Jul 12, 2013
if you can provide recent comps that support a higher value provide them to the Loan Officer and he/she will try to dispute this for you.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Fri Jul 12, 2013
Agoodman,
Please support your assertion your unit is worth more.
Give us the data.
-
Your agent would have provided you comps.
What does your agent advise?
You do have an agent, yes?
0 votes
Ivan Sagel, Agent, Chicago, IL
Fri Jul 12, 2013
If you are an owner in the building, then you should be familiar with the units and recent sales. This building has odd layouts, small windows, small kitchens, etc... There have many sales below your appraised value of $170,000.

Best regards,

Ivan Sagel
312-515-7823
ivan@atproperties.com
http://www.atproperties.com/agents/IvanSagel
0 votes
Ivan Sagel, Agent, Chicago, IL
Fri Jul 12, 2013
If you are an owner in the building, then you should be familiar with the units and recent sales. This building has odd layouts, small windows, small kitchens, etc... There have many sales below your appraised value of $170,000.

Best regards,

Ivan Sagel
312-515-7823
ivan@atproperties.com
http://www.atproperties.com/agents/IvanSagel
0 votes
, ,
Fri Jul 12, 2013
Philip said, " It belongs as a rental building and I think it is about 80% rentals."
With this being the case, this will limit financing options for buyers looking to purchase in the building, affecting the marketability. This will in turn affect the value of each unit in the building and slow appreciation.
0 votes
Manuel Brown, Agent, Chicago, IL
Fri Jul 12, 2013
Dear Agoodman,

It is unfortunate you were hard hit by the over inflation of the pricing during the boom. Philip is absolutely correct in his assessment why?

The value of your condo is determined by the price per square footage based on similar units in the building as well as neighboring buildings. There are cases if the appraisal is so far out of line you can request another appraisal but it will be at the sellers or buyers expense.

Bet of luck.
0 votes
Evelyn S. Fr…, Agent, Chicago, IL
Fri Jul 12, 2013
Hello,

All of the previous comments are spot on, the appraiser bases his/her numbers on recent similar units in the building.

That said, a) you have the right to contest it, request a copy, and, b) it is very possible the appraiser doesn't know what he/she is doing. Finally, truth be told that building has suffered quite a few short sales and/or foreclosures and many of the units are outdated.

When I checked for "overall sales" in that building in the past 6 months the "median" came in at $116k and the average at $135k! Based on this I would say you got a good appraisal.

Good luck!
0 votes
Matt Laricy, Agent, Chicago, IL
Fri Jul 12, 2013
They pulled the comps and there have been some really low sales in there.
0 votes
Santiago Ken…, Agent, Chicago, IL
Fri Jul 12, 2013
First - why do you order this appraisal ? Second - what you are trying to achieved ?
The assessment in this building make the prices going down more that the economy facts .

http://www.Chicago-appraiser.com
0 votes
Alan May, Agent, Evanston, IL
Fri Jul 12, 2013
Appraisals, especially in high-rises, are based on recent sales of comparable units in the building.

If you feel the appraisal is ridiculous, you have the right to ask to see the appraisal, and check which units they're using to compare with yours.
0 votes
Jacqueline S…, Agent, Chicago, IL
Fri Jul 12, 2013
I have shown that building before. The market has not been good to it. The windows are very small and there are window air conditioners and the kitchens are TINY. I also believe the developer is still sitting on a lot of inventory. Is it a studio, 1 bedroom? How upgraded is it?
0 votes
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