Using comps and reconsideration when value comes in low

This one request made before the engagement is placed is the most effective mitigation available. The summer occupancy triggers a value reduction. An appraiser receives 68% occupancy in the summer months without context may apply a below-stabilized occupancy discount. So include your seasonal occupancy explanation, the same annotation from your pro forma. With the appraisal engagement package, the lender or the appraiser may share context with you before the engagement if you provide it. For thin comps, give the appraiser every comp you've assembled— adjacent markets, similar facility types, including the self-storage comparison frame. 3 imperfect comps are better than an empty comp section in an appraisal report. If appraised value comes in below purchase price— and this happens— when it does, you have 2 options: request reconsideration of value with supporting data, or renegotiate the purchase price. Your written comp argument from day 19 is the document that supports the reconsideration request. Have it ready before the appraisal comes in.