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Hey Fannie-What is a comparable anyway?

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Pete Humphrey, Mar 13, 2009.

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  1. Pete Humphrey

    Pete Humphrey Junior Member

    Jan 18, 2005
    Professional Status:
    Certified Residential Appraiser
    I am getting very tired of stating very clearly that I could find NO OTHER CLOSED OR ACTIVE/PENDING COMPARABLES WITHIN A ONE MILE RADIUS AND WITHIN 90 DAYS OF THE APPRAISAL DATE only to be conditioned for another of each. I just did a report where my number one comp was a smaller property with an inferior view in the same development selling within 60 days and I had a model match pending sale listed way above my final reconciled value. Of course I get a comp asking for one more of each. Here's the way I responded:

    "On March 13, 2009, appraiser received a request to add an additional sold comparable with a COE date of within 90 days from appraisal date and an additional active or pending sale to the already 5 closed comparables and 1 active comparable listing included in the original appraisal report (dated 3/6/09). Please note that appraiser originally reviewed these properties in his sales comparable analysis, but did not consider them "comparable" to the subject property since they are in a newer neighborhood, are west of Rancho Santa Fe Road, are single story homes, and have no pano-area view which was a key characteristic of the subject.

    Since the definition of market value is based on the most "comparable" sales, appraiser did not include these properties in the original analysis and reconciliation of value. If appraiser had included these properties and other recent sales from this neighborhood, then appraiser may have been inclined to over-inflate the final market value reconciliation.

    However, since underwriting and Fannie Mae guidelines now require appraisers to include properties only because they may compare in terms of GLA to the subject property, and only because they sold in the past 90 days and/or are listed for sale, appraiser has responded as such, only in order to meet this underwriting condition and does not consider these properties comparable."

    And I wanted to write - now you stupid underwriter, check off your little box and kiss my hind-end! I am not a forms monkey - I am being paid to analyze properties to determine if they really are comparable, physically inspect them to determine if they really are comparable, make intelligent, level-headed and unbiased decisions about what a potential borrower would pay for a comparable property, etc. You on the other hand are being paid to check off boxes, not read the report, and send it to the computer that rips out my data and puts it into a AVM (which will soon replace me) and then send me stupid conditions!

    .....By the way, what are you paid and do you have any openings? I'll be in the job market soon and I'd like to find a job like yours where I don't need to have a brain.
    Last edited: Mar 13, 2009
  2. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    May 2, 2002
    Professional Status:
    Certified General Appraiser
    I like that and for all of us suffering fools gladly isn't much fun
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