Considering filing complaint for lack of market conditions adjustment on stale comps

[NC Appraising]

The 1004MC can be so manipulative in interpretation.
I have absolute number prices going up but when looking at $/sf, it's stable.
Without looking at $/sf, I can call it increasing market.
If looking at $/sf, I call it stable.
I've been looking at $/sf and market has been general.
Do my peers look at $/sf?

This is for the median sale price section of the 1004 MC.

The main reason why it is not accurate is because of the narrow amount of data it calls for the appraiser to use, my seasonal market.... and not all of the comparable sales are equal. Think about it....

The below would be more accurate if the comparable sales were exactly the same in GLA, site size, condition, concessions, features, etc. and required no adjustments.

Now if there was a way for us to make adjustments to the comparable data and then run the data, it would be more accurate.

 

[DWiley]

This is a great example. No way trends can be based on 8 total data points. i think we would all agree on that

So, why in the world would anyone indicate trends based on 8 data points?

Note that the header says, Overall Trend. It does not say, “Overall Trend from Data to the Left”.

 

[DWiley]

You know they aren't the only people who have worked for Fannie or Freddie.

4. What should the appraiser do if there is not enough data to present a meaningful analysis? In those situations, the appraiser must complete the form with the information he or she has for the defined neighborhood/area—the lack of data may speak to what is occurring in that area. Additional analysis can be addressed in the summary/conclusion section of the form on data in nearby areas for competitive properties. In any event, the appraiser must provide support for his or her conclusions regarding housing trends as noted in the Neighborhood section of the appraisal report.

So no, you don't just put forth what is in the 1004MC if your data is insufficient for a meaningful analysis. BTW, this is from the first link I supplied.

And, if you actually read that and do it correctly, it will match.

 

[Mejappz]

 

[CGinMN]

View attachment 52250This is a great example. No way trends can be based on 8 total data points. i think we would all agree on that

So, why in the world would anyone indicate trends based on 8 data points?

Note that the header says, Overall Trend. It does not say, “Overall Trend from Data to the Left”.

Are you saying the overall trend on the right is derived from an analysis of the data outputs on the left?

 

[Mejappz]

Thirteen years after this wretched form was released and we are still debating what it means. Another example of an intended user/client running interference and trampling over sound appraisal practice. So sad.

 

[Alsie35]

I'm I wrong? Here is a example:
View attachment 52245

View attachment 52246

View attachment 52247

View attachment 52248

Thank you. This is an excellent example of how to "square this circle".

 

[Mejappz]

You know they aren't the only people who have worked for Fannie or Freddie.

4. What should the appraiser do if there is not enough data to present a meaningful analysis? In those situations, the appraiser must complete the form with the information he or she has for the defined neighborhood/area—the lack of data may speak to what is occurring in that area. Additional analysis can be addressed in the summary/conclusion section of the form on data in nearby areas for competitive properties. In any event, the appraiser must provide support for his or her conclusions regarding housing trends as noted in the Neighborhood section of the appraisal report.

So no, you don't just put forth what is in the 1004MC if your data is insufficient for a meaningful analysis. BTW, this is from the first link I supplied.

The hammer to drill the nail in is found in the articles I have posted from the **Appraisal Journal**. Who are you going to believe, the AJ or the GSEs?

 

[Carnivore]

To get back to the Original Post. I think the person has a valid point. We don't don't know his Market .... It does not matter.

To file a complaint with the State Board will not change the results of the Original Appraisal. It may only at best validate the buyer's disagreement. The only course of action the OP probably could have taken is to Retain another Appraiser. The Lender will not use that report. We all know that. What I found most interesting is the OP ponied up the extra cash instead of walking. In the Charlotte MSA, we were seeing over the past year SP/LP Ratios in excess of 100%. Now finally those Ratios are just below 100%.

What does that mean? Fewer buyers, more sellers or supply via new Construction is catching up or a combination.

 

[Mejappz]