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  #1  
Old 12-23-2004, 02:19 PM
Tim Hicks (Texas)'s Avatar
Tim Hicks (Texas) Tim Hicks (Texas) is online now
 
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Everybody should do a few reviews from time to time. You will learn a bunch and it will enhance your appraisal writing skills.

Some of the things I have learned from reviews:

1. It is the national standard to adjust $20 per foot or less on comparable sales whether homes are selling for over $100 per foot or not. I haven't used $20 per foot except for MH appraisals in years.

2. It is OK to make up site sizes because it is easier than a couple of clicks on the tax records to find the true site size.

3. Slippy or Skippy as some of you may call him always makes the statement that his appraisal is performed under compliance of USPAP, despite all the lies, misinformation and avoided sales.

4. Slippy likes to pass his canned comments around so others can have his generic ability to say nothing in the alloted space. Don't tell what you did in the market grid, just slap a canned comment in about necessary size and amenity adjustments and homogeneous homes in the neighborhood. Yet, never explain why you used the 20 year newer homes when there were 40+ similar age home sales and only two of those newer home sales.

5. Less is more. The less you say in the appraisal, the less you can get slapped around for under review.

6. Make this comment in the condition of improvements section: No functional or physical inadequacies were observed from inspection of the subject. The subject is considered in average quality and condition with no significant repairs needed. Then in the sales comparison, make upward adjustments because your subject has more upgrades and is in better condition than all the sales.

7. Always put "suburban" or "urban" in the location line, that way nobody will ever know that none of your sales are from the subject's subdivision.

8. If the subject has a pool, then the adjustment is $15-30,000. If the comparable sale has a pool and the subject does not, then fail to mention it. If you have to mention it, the adjustment is $7,500.

9. Always quote Fannie Mae guidelines, even if you have no idea what they are or where to find them. Especially, if you have a new home appraisal and don't know you need at least one re-sale as a comparable sale.

10. Never proof read your reports. It is quite entertaining to read that home is a 2 bedroom, 1 bath home with wood siding on the URAR and to read in your canned addendum that it is a 3 bedroom, 2 bath brick home.

I have more, but I am tired of typing. Merry Christmas to all.
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  #2  
Old 12-23-2004, 02:31 PM
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Thanks for the tips. I'll be sure to try some of them out soon to increase my business.
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  #3  
Old 12-23-2004, 02:46 PM
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Hmmm. Obviously, some of us need to brush up on our fictional writing skills. :P
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  #4  
Old 12-23-2004, 04:12 PM
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Agreed on the brushing up on fictional writing aspects, but Number 7 needs to be changed since it seems that Tim is reviewing the same "Slippy's". Slippy/Skippy always puts "Average" in the location. Never a subdivision or development or PUD or condo name ~~ Average!

Oh - And always say see attached and then attached isn't there or doesn't have a thing to do with where you were referred from (site, improvements, condition, etc.).
  #5  
Old 12-23-2004, 04:58 PM
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I put "Average" or "Good" in the location cell on page 2. I am not a skippy.

My two counties have no consistent maps to use as references, and it would be meaningless and probably misleading to try to put in a neighborhood name or some other nomenclature just to fill a box. If all of the comparables are in an equal market all comps will be listed as average or good or fair or poor - whatever. If there is a difference, then the corresponding term will be listed and an adjustment made.

If it's in a PUD or condo development or some other unique market, I list the name in the line under the address along with the distance - as all locations in that development will be equal. This is explained on both page 1 and in the comments on the sales comparables on page 2.
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  #6  
Old 12-23-2004, 05:06 PM
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Just put Average/Good, Greg. That should be confusing enough. Suburban is generic enough, too.

11. MLS listing states "Large Workshop". Appraisal description: "workshop". No other description, no picture, not on the sketch, just "workshop" and adjust what you think fit.

12. Make every line "see addendum", then make sure your addendum could apply to any property.
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  #7  
Old 12-23-2004, 09:11 PM
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#12 could save some time.

It's also easier if you just pick the highest sales and call them comps. :twisted:
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  #8  
Old 12-23-2004, 09:45 PM
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Quote:
I haven't used $20 per foot except for MH appraisals in years.
low SF makes it easier to use a narrow $ range where you want it. You know.....20 yr old subject 1800 SF. Comp 1 2400 SF. $100,000. 30yr. old. Comp 2 1200 SF. $76,000. 10 yr old. Comp 1 -12000, Comp 2 +12000. ITS MAGIC. $88,000 for the subject.....
Actually we have a lot of very old houses that $20-25 works on.

Quote:
Always put "suburban" or "urban" in the location line, that way nobody will ever know that none of your sales are from the subject's subdivision.
actually most subdivisions built in my town before 1995 had less than 10 houses, a very few might have 20. Only a handful built in the late 70's had 30-60 houses and I cannot think of anything bigger. Now they develop 10-80 acres at a whack, so you usually have comps in the subdivision...but those old neighborhoods may have only 1 or none, and that may have been extensively remodeled since.....
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  #9  
Old 12-24-2004, 01:07 AM
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Yeah, I noticed that one too, Terril. I have lots of areas where $20 works out just right based on solid pairs. It's not what it cost to build, or even what a property sells for per square foot - if you have good solid comps, it's what the difference in value would be for just a few more square feet.

So, if you have two $100k houses one with 1,800 square feet and one with 1,900 square feet, and everything else is equal, do you really think a buyer is going to pay $10k extra for that 100 square feet? Not in my market! In fact, $2k woiuld be a lot since most buyers would not even notice the size difference.

I have some older houses in the $20 to $40k range, where $11 to $13 per square foot seems to be plenty.

Joplin is the State of Missouri's 4th largest MSA. The MSA consists of two counties. Think any of that area should be considered rural? There are definitely places where there are more cows than people. I've had to go as far as twenty miles for a comp with unusual homes (read berms) in the more isolated areas. But, nothing in the MSA is more than a 45 minute drive from the center of Joplin. So.... you be the judge - should anything in the MSA be considered rural? (Talk about opening a can of worms.)
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  #10  
Old 12-24-2004, 07:21 AM
Edd Gillespie Edd Gillespie is offline
 
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Quote:
Originally posted by Terrel L. Shields@Dec 23 2004, 10:45 PM
Actually we have a lot of very old houses that $20-25 works on.


actually most subdivisions built in my town before 1995 ...
I've got some that $15.00/sf works quite well on and do it all the time. $10 on MFG.

What's a subdivision? Heard they had one in the big city. We have no subdivisions, but we do have additions to town and then over the next 20 years or so people go out there and either put in MFG or custom built $150K-$350K houses sometimes right next to each other, and we have urban situations in towns with 700 people.

Oops, not to be misleading, two of our cities w/ 7000+- do have subdivisions. Little ones w/ about ted houses. Then there's one with about 100 houses. In that one the addresses start on one end of the block and go counterclockwise all around the block and block 1 is next to block 5.

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