Positive adjustments in Sales Concession section

[Have Laser-Will Travel]

From what I understand FNMA does not want positive adjustments in the Sales Concession section (Why, I don't know. Maybe they just don't like the added risk since they seem to be okay with negative adjustments there). So if I need to make a positive adjustment, where does this go? I can make it a line adjustment at the bottom of the page but then UAD is going to force me to create entries for the subject all comps and then I have a report that has a sales concession section at the top and again at the bottom.

 

[residentialguy]

Reconcile it and opine value at the upper range.

However, could you please explain how the sales concessions paid by the seller would be positive...I seriously don't know how that would happen. The price is 200k...but I'll lower the price to 180k if you let me pay you 10k in seller concessions.

 

[hastalavista]

Can you describe the kind of concession you are looking at that would result in a positive adjustment?

Thanks

 

[CANative]

:new_popcornsmiley:

 

[Terrel L. Shields]

If a seller offered 0 interest to do owner financing.... v. the seller getting 15% interest to do owner financing... hmmm?

 

[hastalavista]

If a seller offered 0 interest to do owner financing.... v. the seller getting 15% interest to do owner financing... hmmm?

Non-market finance adjustments are not a problem.

 

[Terrel L. Shields]

Well... that's what I thought. How do you get a "concession" +. ??

 

[smackodu]

From what I understand FNMA does not want positive adjustments in the Sales Concession section (Why, I don't know. Maybe they just don't like the added risk since they seem to be okay with negative adjustments there). So if I need to make a positive adjustment, where does this go? I can make it a line adjustment at the bottom of the page but then UAD is going to force me to create entries for the subject all comps and then I have a report that has a sales concession section at the top and again at the bottom.

Are you sure you are an appraiser and not Manti Te'o's girlfriend?

 

[Have Laser-Will Travel]

Reconcile it and opine value at the upper range.

However, could you please explain how the sales concessions paid by the seller would be positive...I seriously don't know how that would happen. The price is 200k...but I'll lower the price to 180k if you let me pay you 10k in seller concessions.

Well not everything in the Sale Concession box is actually a concession. For example, UAD has "REO" appearing there. If one were to find that REO sales are discounted, it would make sense to have a positive adjustment here.

 

[hastalavista]

Well not everything in the Sale Concession box is actually a concession. For example, UAD has "REO" appearing there. If one were to find that REO sales are discounted, it would make sense to have a positive adjustment here.

(my bold)

On this, we agree.
However, that wouldn't be a violation of the GSE's prohibition on positive seller concessions.
What you describe would be a transactional adjustment (read Valuation Advisory #3 published by the Appraisal Practices Board, and available on the Appraisal Foundation Website).

But is that what you are talking about (a transactional or financing adjustment, as Terrel exampled)?
Or, is your question more related to a UAD formating issue and what will cause a hard stop if entered into a particular space in the grid?