$25,000 Adjustment for EV Charger

[TerryRohrer]

There is no excuse for the appraiser revealed in the OP, or any appraiser acting similarly. But much of this intent to mislead can be traced to the appraisal users' demand for it (not directed at the OP, but in the general sense). It took the GSEs two years or less after the implementation of UAD to conclude that appraisers on the whole were making and/or avoiding making warranted adjustments in order to avoid "adding additional commentary" regarding excessive line item, net, and/or gross adjustments. The same is taking place with demands regarding bracketing, across-the-board adjustments, and "demonstrating the impact on marketability." As DWiley pointed out, appraisers certify that they have considered and explained the impact of stuff on marketability, yet when he was asked for a definition of "marketability" and how it was measured, his response was he "hoped" appraisers knew because they said so. Wouldn't it be prudent if the users of appraisal reports knew what they were asking, and how what they were asking for was defined, and how to measure what they were asking, rather than leave 70,000+ appraisers who actually have something to lose to guess what the users "hope" for?

 

[Evincere]

Appraiser may have confused the charger with the cost of a replacement EV car battery.

 

[Fernando]

UAD didn't really changed how we adjust. On paper it looked different but we continue adjusting like before.
The new UAD form is long and too detail but does not address appraisers doing a better job in valuation.

 

[timd354]

Wonder if they meant 2500? The tech bro crowd that lives in my city thinks those chargers are a big deal, but the market says otherwise.

Some appraisers use programs that just pump **** into the sales grid, and they don’t put any thought or judgement based on experience into what their internet machine spits out. Maybe that the case here. Or maybe he was independent and decided he needed it to hit the number. Bad look regardless.

Did it go through an AMC or any basic level of review before you got it?

I doubt that the appraiser meant $2500 becuase then the comps would have come in about +/- $20,000-$25,000 under the appriased value/contract price. This one was not from an AMC. Regarding the review before it got to me, my underwriter reviewed it and sent it to me as it was a strong borrower and she did not want to reject it without me taking a look at it.

 

[timd354]

Reviewers should do their job and request how the adjustment came about. That's how the game works.

We did our job and declined the loan for unsupported appraised value. We did not request the appraiser to explain how he derived the adjustment because there was nothing he was going to be able to say that would have gotten me comfortable with that adjustment. The only thing that would have gotten me comfortable with the appraised value under the circumstances was if he would have provided another comp of a property with an EV charger that was truly comparable with the subject property and that comp actually supported the appraised value. However, if such a comp existed, he likely would have already included it, so there was no sense wasting everyone's time by pending this one.

 

[Fernando]

We did our job and declined the loan for unsupported appraised value. We did not request the appraiser to explain how he derived the adjustment because there was nothing he was going to be able to say that would have gotten me comfortable with that adjustment. The only thing that would have gotten me comfortable with the appraised value under the circumstances was if he would have provided another comp of a property with an EV charger that was truly comparable with the subject property and that comp actually supported the appraised value. However, if such a comp existed, he likely would have already included it, so there was no sense wasting everyone's time by pending this one.

A good reviewer would have requested the appraiser to have additional comps with an EV charger to justify the $25K adjustment. If there are such comps, then the market supports it. The market makes the call, not the appraiser or reviewer.

 

[Dublin ohio]

A good reviewer would have requested the appraiser to have additional comps with an EV charger to justify the $25K adjustment. If there are such comps, then the market supports it. The market makes the call, not the appraiser or reviewer.

You could never be a competent reviewer

 

[Fernando]

You could never be a competent reviewer

Yeah, I usually find something wrong with someone's report.
When I don't find any errors, I regain faith that there are still good real appraisers out there.

 

[Dublin ohio]

A good reviewer would have requested the appraiser to have additional comps with an EV charger to justify the $25K adjustment. If there are such comps, then the market supports it. The market makes the call, not the appraiser or reviewer.

Of courses we all know that appraisers always withhold their best comp so they can provide it after the report is reviewed

 

[timd354]

A good reviewer would have requested the appraiser to have additional comps with an EV charger to justify the $25K adjustment. If there are such comps, then the market supports it. The market makes the call, not the appraiser or reviewer.

WTF, if such comps actually existed (and supported the appraised value), then the aprpaiser would have already included them....we are not in the business of wasting our time or the time of the lender and the appraiser by pending files for conditions that are unlikely to be adequatley addressed.