Active Appraisers - The "requirement" for Time Adjustment Support

[RustyTapeMeasure]

So active appraisers, with all that yapping about how they were going to require appraisers provide actual support for positive, negative or warranting no adjustment on each particular comp in the sales analysis....Did they follow through and appraisers are being hit with revisions when they don't supply illustrations, graphs, or 'whatever' for the 12 month tracking. Or was it just bluster and same ole game?

 

[Terrel L. Shields]

Yes, we have no bananas today.

"I couldn't find a sale with a 2,400 SF shop building that is air-conditioned, so I pretended it isn't there."

 

[bk_cali]

I do 5-7 reports per week. I have not started using time adjustments unless it is absolutely necessary. I check the box that says prices are stable, and if an MC form is required, I check the box that says stable. I have had no comments or pushback since the rule came into effect.

 

[alebrewer]

Can't speak for other groups, but our underwriters do require appraisers to provide market analysis reporting commensurate with the new requirements.

 

[Alsie35]

I have included market graphs showing 3-month median values patterns going back 24 months with median values at each step, for years. I use that graph to calculate the time adjustments.

Spoiler: if you use a graph like this, it quickly becomes obvious that even if a market is stable, median values go up and down during the year based on various factors, such as the seasons. As a result, since they implemented the requirement, I have assiduously made time adjustments on every single appraisal that I do, sometimes having comps adjusted up at the same time as other comps are adjusted down-even if the overall market trend for the year is stable.

Once you start analyzing it this way, you quickly realize that Fannie really had a point with this requirement.

(You can put my check in the mail now, DW. )

 

[Bobby Bucks]

Since the riot act was made law of the land (in their minds) , I've even gotten canned revision requests to comment on their "new law" in rent surveys. Rental time adjustments. I'm considering counter requesting contact information for Fannie property data collectors so I can support the condition adjustments for the rental comps, Fannie does have that data I've been told.

 

[Alsie35]

Since the riot act was made law of the land (in their minds) , I've even gotten canned revision requests to comment on their "new law" in rent surveys. Rental time adjustments. I'm considering counter requesting contact information for Fannie property data collectors so I can support the condition adjustments for the rental comps, Fannie does have that data I've been told.

That just sounds like an uninformed underwriter being stupid. And you know what they say: "You can't fix stupid".

 

[Bobby Bucks]

That just sounds like an uninformed underwriter being stupid. And you know what they say: "You can't fix stupid".

I wonder if the ones creating the revisions are actual underwriters, my guess is they're merely hourly employees following a checklist supposedly created by an underwriter or an appraiser somewhere up the ladder. I blame them more than the person they're calling a "reviewer" who clearly is not one. It gets old typing revisions for items already addressed.

 

[J Grant]

Even though I have not been making time/market condition adjustments, I have been providing, in many reports, a quick search graph and list of sales in the graph from my MLS. Adss 5-10 minutes. I also provide the MC form. A few times I was too lazy to include the graph and the client did not care.

I assume they are more interested in a graph or chart of other additional support when a market condition, positive or negative, is made.

As far as other adjustments wrt physical features of properties I do not make charts or graphs for those - I extract them from the market with paired sales/sensitivy and those sales are the comps themselves so it is very easy to explain.

 

[alebrewer]

I assume they are more interested in a graph or chart of other additional support when a market condition, positive or negative, is made.

Graphs/charts are not required, but they do assist the reader in quickly assessing trends.