[QUOTE=javadog;7353532]
Quote:
Originally Posted by MRM
Someone overpaid for the property. I/QUOTE]
Not neccessarily. The appraisal process is generally too simplistic to determine a real value. Plus, the appraisers that I have known really didn't have a sufficient understanding of house construction and construction/renovation/repair costs to really understand what they were doing. Houses vary far too much for there ever to be "comparable" sales and an appraisal is very superficial, at best.
Home inspectors can be equally clueless.
JR
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x1,000 bajillion.
Lets also consider that the buyer of the property was willing to pay more than ANYONE else on the planet. By MRM's presumption every buyer of real estate got a raw deal. Further you might consider that the buyer will instantly go from idjut who paid more than anyone else was willing to pay to trusted advisor on valuation of all future homes for sale in that area.
My perspective is that residential home appraisals don't value the asset, they predict trends. There is a space there for replacement cost but the land is the fudge.