Reconsideration of Value - Comp photos

[MHansen]

Does anyone know if on a Reconsideration of Value request, do I have to go out and get photos of the comparables that are requested for review or are MLS photos for these acceptable? The comparables I supplied originally obviosuly have original images, but I'm slammed with inspections today and this property is 45 min away. I'm just curious if anyone knows the rules for this?

 

[Terrel L. Shields]

I don't think it is a requirement, but an individual lender might want to see the property picture. Certainly, it strengthens your case to have seen the property and photograph same when stating why it was not chosen.

 

[MHansen]

Update: AMC states due to FHA they must have original photos. But still curious if anyone has any additional information.

 

[TerryRohrer]

If you include new sales in your report, the certifications you sign to assert that you inspected the comp. The only way I would include a new sale and make the photo trip is if I concluded my original valuation was incorrect and unsupported. I ensure that is not the case before submitting it the first time.

 

[Terrel L. Shields]

Tell the AMC to provide the statement from FHA that original photos are required on a ROV. It does not exist. I am assuming that you reject each (up to 5) sales as less comparable than your own sales. If you do add a comp, then I presume you would need to provide an "original" photo.

 

[MHansen]

Well, lesson learned on my part. Three of the four submissions, in my opinion, are not comparable. The fourth was, however, and it further supported my original opinion of value. I've never completed one before, so I just added all sales to the grid and adjusted accordingly, and then wrote out my new analysis and conclusion. Now I have to face the consequences. Boo

 

[TerryRohrer]

Well, lesson learned on my part. Three of the four submissions, in my opinion, are not comparable. The fourth was, however, and it further supported my original opinion of value. I've never completed one before, so I just added all sales to the grid and adjusted accordingly, and then wrote out my new analysis and conclusion. Now I have to face the consequences. Boo

I would simply remove that sale from the grid and explain how it further supports your original conclusion. There are no requirements that all sales relied on must be in the grid.

 

[Surf Cat]

Does anyone know if on a Reconsideration of Value request, do I have to go out and get photos of the comparables that are requested for review

It depends on if the sales ( let's not call them comparables just yet) are truly competitive. Conversely, if you missed a sale, and it's truly competitive, you would need to go view it and snap a pic.

Most of the time, and everyone here knows this..... most of these sales are completely outlandish in comparison to the subject. Don't be rude, be professional, and include something like this in the addendum. Remember to include the new signing date and state the effective date of value remains the same. And no, you don't go out and photograph these.

Thank you for the opportunity to respond to the additional sales you provided. We have reviewed these sales and have concluded that the additional sales provided do not warrant an increase in value. We will address each one individually.

The sale located at xxxx Oak Rd. In the amount of $zzz,zzz. Has major drawbacks that in combination, precludes it from being utilized in our report. It was therefore "not" deemed a reliable indicator of market value for the subject property due to being architectural, contemporary, in style with walls of glass, exotic wood flooring, swimming pool, superior canyon, mountain views with separate maids quarters. Please note that the subject is conventional in design with an average canyon View with no pool or maids quarters.

So on and so forth. Do the above for each sale and they'll get the gist that you know what you're doing. I also include after the shootdowns a blurb about the sales that I used and how they're the most competitive as of the effective date.

 

[Surf Cat]

Well, lesson learned on my part. Three of the four submissions, in my opinion, are not comparable. The fourth was, however, and it further supported my original opinion of value. I've never completed one before, so I just added all sales to the grid and adjusted accordingly, and then wrote out my new analysis and conclusion. Now I have to face the consequences. Boo

Nooooo. Don't do it this way!

 

[JTip]

This is why you should, in the general course of business, supply the client with a 'list of comparable sales' that were used to generate the MC Form. 20-50 sales that were considered in a line format that should (most likely) include the reconsideration sales. "Yes, this sale was considered, see line 27 of the MLS Raw Data Search Results, but was not deemed comparable for -insert reasons here-".