MLS Comp Photos WTF!

[Joyce Potts]

I am going to say it again

IS ANYONE WONDERING WHY OUR PROFESSION IS HELD IN LOW ESTEEM?m2:m2:m2:

If you were in the State of Oregon, you would certainly have a talk with Mr. Keith (our administrator). Read what you certify and don't sign, UNLESS IT IS THE TRUTH.

And please take an APPRAISAL 101 class, forget everything you know and start fresh training with a QUALIFIED APPRAISER TO TEACH YOU.

RAISES HAND -- I know, I know!!

The AI sucks?

The lending industry has successfully been able to manipulate skippies by awarding them majority of the work over the past 20 years?

Little to no state or federal appraisal reg enforcement?

No two appraisers can agree on anything?

USPAP is so clear and unambiguous even a caveman can understand it?

And I love the one where you state no appraiser should sign IT unless it's true. When was the last time you were able to verify the true NET, CASH or CASH equivlency price of a residential transaction? Or how about a transaction that had a 28% real estate commission in it?

Truth is often a matter of perspective.

 

[Couch Potato]

I'm sorry, but the least important reason to drive by the comp is only to take a picture.

Driving by the comp is as much about the other properties around the comp as anything.

 

[Donna Quixote]

I was wondering if I was the only appraiser left who took comp pictures because every review I do has MLS photos in it. I admit I a lucky that in Milwaukee square footage is available so I have an idea what I am looking for. I always arm myself with 10-15 comps on a list with the map printed out and go out after every inspection and take about 5-6 pics of the comps I am pretty sure I will use. It is our job to take these pictures and drive by for a reason. External issues don't always show up on a map. When you drive by and see what you are going to you it can change your mind. So, do your homework first. Generally people know "about" how large their home usually is. When tax records were wrong I have already stopped into a local library and used their computer to pull up MLS and go get the pics. It is about time I am not the only one doing this. Sure it would be easy to not look up a thing before you go, but that is not what is required.

 

[BRCJR]

There are areas where it might take a week to drive by 12 to 14 properties.

Appraisers that seldom drive comps and use MLS photos as part of their regular routine are the "bad guys." Appraisers who use second or third best comps because getting the pictures of thsoe was easier than going back or spending an entire day and tank of gas to getting a picture of a driveway or corner of the comp improvements can wear the hero's cape but is the appraisal any better for it?

Appraisers who work hard to develop a real appraisal and ocassionally fudge on a comp drive-by can't wear the cape but their clients are probably getting the most reliable market value opinion.

Ocassionally fudging on a comp drive-by is the same as ocassionally fudging on ethics, in my opinion. You either did drive that comp or you did not, period.

 

[Hamlet]

Ocassionally fudging on a comp drive-by is the same as ocassionally fudging on ethics, in my opinion. You either did drive that comp or you did not, period.

Yup, that sums it up. I agree.

 

[Rob Baum]

Exactly! The purpose of those photos is to prove that the appraiser did drive by those comps on or after the effective date of the appraisal.

This may be correct, but I hope not. My hope is that photo requirements are in place to ensure that the appraiser did in fact inspect the comparable properties, as well as the surrounding areas for externalities that may have an effect on values.

I believe that there is a difference in taking a scenic drive and inspecting properties, and my hope is that the requirement is there to make sure that one actually inspects what one believes to be comparable sales.

Originally Posted by Joyce Potts
I've driven by thousands of properties countless times so if I pull the photo from ANY DATA BASE, am I USPAP or FNMA compliant? Can I honestly say I drove by the comp?

Again, this is my opinion, but what is being requested is more than simply driving by - unless you took notes on each of those thousands of properties with regard to externalities, topographies, etc. - then whether or not you fulfilled the letter of the requirement is a moot point, you certainly did not fulfill the intent.

Originally Posted by Ken B
So what do people think about Virtual Earth Bird's Eye View and Google Street View? From my office chair, I can see what's in a comp's back yard and all the neighboring properties around it as well as the freeway behind it. I can't do all that sitting in my car in front of it.

I find these to be useful tools, but not a substitute for actually being there in person.



Edit: Now it just looks like I am repeating things

 

[BRCJR]

FTR - I have to drive all my sales because my clients expect it and my reports say I do. That sometimes means I drive to the end of a dirt road that doesn't actually come close to hitting the property. It also means I cover a huge area at times. However, I'm not opposed to people not driving sales if their SOW, agreed upon with the client, describes that. With the type of work I do, there are many sales in many areas I would be comfortable using without driving to them. However, that just doesn't work for my clients. If it did, that would be a different story.

Sounds like you have clients looking for quality, those are the kind I like.

 

[Hamlet]

Lets raise your hands...how many drive by the comps but don't look at them or take any notes?

 

[TJSum]

"Drive by" the comps is just appraiser slang. The Scope of Work states "INSPECT the comparable sales from at least the street". That is far different then having driven down that street at some point in your life.

 

[Ken B]

I'm sorry, but the least important reason to drive by the comp is only to take a picture. m2:


Why do we drive by the comparable sales? Just viewing Google Earth and the MLS doesn't cut it. Driving by them gives one the "feel" for the neighborhood, one that a potential buyer would get. A computer can't give you that "feeling" .

- observe the exterior condition. verify the MLS, new roof, brick veneer full, is it really that big, pool, etc.

- some projects have various phases with very differing quality and price points.

- view. what kind of view do they really have. full, seasonal, distant water view, etc.

- location. corner lot, backs up to an area that affects the value. the sale has nasty neighbors, and maybe this is the reason it sold for 10K and you just couldn't figure out why. busy highway, airport noise, other external issues that one couldn't determine by viewing an MLS photo.

- to verify other information, such as the garage type, side load really 3CG?, does the rear yard slope so bad that it takes away from the utility/enjoyment, thus takes away from value. Thats why it sold for 12k less and took more DOM than the other sales

- does it really have a basement?

- does the home still exists

- is it the same home as shown in the MLS photo?

- landscaping, curb appeal.

If one is to damn lazy to drive by the sales, why don't you just let the bank order an AVM?

A number of years ago, a 2,000+ lot SFR project was developed adjacent to my subdivision. The fields and woods where I walked my dog for many years were replaced with nice little plastic boxes all lined up in pretty little rows.

My best client was one of the primary lenders for the developer and primary builder. I also did many construction loan appraisals in the subdivision and did hundreds of draw inspections in the development. I knew every street, every model, every upgrade, and every view.

Did I really need to drive by a sale and take a picture of that property? After all, there wasn't a house in the project that I had not already driven by at least a few dozen times. Heck, since I personally appraised about 400 of those properties, there was a pretty good chance I had already been inside the sale at one time or another.

Certification? Like I said, there wasn't a house in there I had not viewed from the exterior multiple times.