Bracketing a 6 acre parcel when the nearest comp is 14 miles out

Say a buyer is under contract on a 1,280 square foot house on 6 acres in a county with maybe 90 arms length sales a year. Contract price 148k, cash out purchase money loan behind it, so the lender orders a full appraisal rather than taking a waiver. Appraisal comes back at 139k. The three comps are 9, 11 and 14 miles out, two on 1 to 2 acres with a flat site adjustment of 8k for the extra acreage, and the third a 2019 sale time adjusted forward by a percentage the report describes as a market conditions adjustment without showing the paired sales behind it. The subject has a detached 900 square foot shop that got 6k, and shops like that tend to move a listing in that kind of market. If two sales inside 4 miles from the last 14 months are missing from the report, both on acreage, both closed above 150k, and one of those was appraised conventionally by the broker's account, that is real grounds to pursue a reconsideration of value. The tradeoff is timing. An ROV through the lender's AMC often costs 7 to 10 days, which matters when a rate lock has only three weeks left. Whether it is worth pursuing usually comes down to whether the seller will move on price at all, since if they will not, the ROV is the only lever left before deciding to eat the difference or walk. In thin rural markets, ROVs do move when the missing comps are genuinely closer and more recent than what the report used, so it is worth asking others whether one has actually worked for them in a similarly thin market.

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mikeoconnell7 SO3CPRO 12

Say two sales sit inside 4 miles of a subject like this and the rest are 9 to 14 miles out. Those two close-in sales are the whole argument, so an ROV lives or dies on whether the appraiser can be handed the closed price and not just the address. In a non-disclosure state that may not be possible, since roughly a dozen states don't put sale prices in the public record at all, and then it comes down to the appraiser's MLS access or the listing broker being willing to confirm in writing. Worth checking which kind of state applies before spending a day on this. The other thing to look at is a time adjustment with no support. Most ROVs get rejected because the requester argues value instead of pointing at a method problem. A line that says the market conditions adjustment is applied without a stated derivation gets read very differently than a claim about what the property is worth. On timing, an AMC-routed ROV usually goes lender to AMC to appraiser and back, and each hop has its own queue. Ten days is optimistic in a rural coverage area where one certified residential appraiser is covering four counties. Worth asking the loan officer for the lender's stated ROV turn time in writing, because a longer window turns this into a lock extension decision rather than a value decision. A modest outbuilding adjustment is the weakest place to plant a flag. Support for outbuilding contribution in a market with only about 90 sales a year is genuinely hard to establish.

mikeoconnell7 SO3CPRO 12

Bracketing a 6 acre parcel when the nearest comp is 14 miles out

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