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Old 07-22-2005, 07:28 PM
Keith Keith is offline
Join Date: Jan 2002
Location: North Carolina
State: North Carolina
Professional Status: Certified Residential Appraiser
Posts: 129

I was just faxed an AVM report on an appraisal that I completed last week. The subject is a ranch /w full basement. The basement has recently been finished, and the house has been rehabbed.

My value: 112K (also under contract for 112K). The AVM found $72,000 and the underwriter is giving ALL weight to the AVM! Amazing!

The AVM gave 10 sales – two are foreclosures, and none of them have a basement. The AVM does not consider basements, or condition. Finally, we have comments supplied by the AMV stating that my comps were “apparently separated by neighborhood boundaries.” Sure, I had to go further away to find sales with basements – these are called COMPS!

The AVM can’t do one fundamental thing in the appraisal process – separate sales from comps. This is a bunch of garbage. Of course, I couldn’t care less, if it cut my value down to $0 for all I care. I’m amazed that the AVM is given more weight than my appraisal! The AVM’s confidence score was stated to be “Very high.” Or was that referring to the underwriter, or AVM operator?
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Old 07-22-2005, 07:46 PM
Workbox's Avatar
Workbox Workbox is offline
Join Date: Mar 2005
Location: The Rockies
State: Colorado
Professional Status: Certified Residential Appraiser
Posts: 7,840

Reminds me of a tv show that had a computer/robot, that would rant on "does not compute!, does not compute!" and the tv hero would just blast it to smithereens. That's a good Show. Like I told a realtor awhile back..... Well, you can search it.
In the midst of movement and chaos, keep stillness inside of you.
Old 07-22-2005, 09:22 PM
Claude From NY Claude From NY is offline
Join Date: Jan 2002
Location: NYC - Long Island
State: New York
Professional Status: Certified Residential Appraiser
Posts: 2,563

I think it was the robot from the 1960's TV show Lost In Space. Had a spaghetti colander for a head. Funny, that's exactly how I like to picture the AVM spitter outers.
Old 07-23-2005, 12:15 AM
Karl Karl is offline
Join Date: Jan 2002
Location: Arizona City AZ
State: Arizona
Professional Status: Licensed Appraiser
Posts: 7,602

UW sees contract is 112 your Appraisal is 112 MAYBE shes seen so many of these she has a HARD time distiguishing a GOOD Appraisal from all the BAD Ones lately. She came to this Forum and seen MANY say AVM's are higher than Appraised Values now you send her something that contridicts that & it HAPPENS to be a Contract & Appraisal that MATCH. We as Appraisers have made the lending industry leary of us. BECAUSE too many Appraiser have LOST sight of what we are SUPPOSE to be "INDEPENDANT" to many have jumped into BED with RE Agents & Mortgage Brokers & to SCARED of losing work IF they do the job properly. Therfore creating this PROBLEM of the QUESTION: Is the Apprisal Legit or does the Appraiser LOVE the RE Agent/Mortgage Broker or just filling in the form to PLEASE them for more work.

NOT saying rather your Appraisal was RIGHT or WRONG Just that MANY Lenders have been warned to look CLOSER at the overall loan & Appraisal is a Non Discrimination way of saying NO to a loan.
Old 07-23-2005, 07:25 AM
Chris Colston's Avatar
Chris Colston Chris Colston is offline
Join Date: Jul 2003
Location: East Central Florida, Space Coast
State: Florida
Professional Status: Certified Residential Appraiser
Posts: 5,442

I had a similar scenario last week on a REFI. House is on a lake with a pool. Typical sized living area and lot, in a larger PUD (445 houses). The house was the builder's model back in 1995. I used 2 sales inside the PUD and 1 sale outside in a similar PUD less than a mile away. All had lake views and pools....the only three with lake views AND pools. I had a few sales with just pools and a couple of lake view sales without pools, but I felt the three sales just like the subject were best.

I get a fax stating the Underwriter wants to see at least 2 sales closer in proximity (Comp. 1 was .4 miles, Comp. 2 was .8 miles (the outside sale) and Comp. 3 was .3) in the same PUD. How much closer should have I gotten, across the street or next door perhaps? Sure, if they had sold in the past 6 months, maybe. Funny, if the underwriter had read my report, she would have discovered that I had a comment about the 2 INSIDE the PUD sales and the 1 outside.

Come to discover after much back and forth, that the underwriter had an AVM that indicated a much lower value because the AVM did not consider the pool or the superior lake view.

There were other stipulations that I already had comments about in the appraisal report. I finally heard these words....."Please just take all of your comments and cut and paste them to an addendum...the underwriter does not like to flip back and forth between report and addendum and therefore does not read all of the comments unless she can see them all in one place.".....ARGH!!!!!
Old 07-23-2005, 07:33 AM
Otis Key's Avatar
Otis Key Otis Key is offline
Join Date: May 2004
Location: Mile High
State: New Mexico
Professional Status: Certified Residential Appraiser
Posts: 15,970

Keith, when I get those, not often since I'm in a non-disclosure state, I hand write next to each AVM "comp" what's wrong with it and fax it back. No basement; not a sale but a refi; size drastically different; etc. Nothing more and nothing less. FAX - Ball is in the UW's court. The UW can cut the values all they want but your report is in writing. When everyone else screams, just tell them to contact the UW.
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