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UWs are finally calling BS on

chad hampton said:
What sort of work are you looking for? What precisely are you looking for when I make a $100,000 pool adjustment on a 900 K home? Is the fact that I’ve appraised thousands of homes and personally know 2 local pool builders and can tell a pool cost just by looking at it within 10 or 15% good enough? At least for a starting point?
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Knowing the cost of a pool is fine, but also may have little relation to its value. If I have a $150,000 pool on a $300,000 house I don't expect the adjustment is the same as if that same pool was placed on a million dollar house. :)

What is needed is exactly what USPAP says - logic and evidence based on recognized methods and techniques. That is not a new thing.
There are many recognized methods for supporting adjustments - PFA is not one of them.
 
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DWiley said:
Knowing the cost of a pool is fine, but also may have little relation to its value. If I have a $150,000 pool on a $300,000 house I don't expect the adjustment is the same as if that same pool was placed on a million dollar house. :)

What is needed is exactly what USPAP says - logic and evidence based on recognized methods and techniques. That is not a new thing.
There are many recognized methods for supporting adjustments - PFA is not one of them.
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Nobody is saying CTC on a pool is a worthy adjustment.

Overimprovements happen all the time.

It would be wise to quote numbers on like building permit and cost owner said they paid to build the pool.

It would also be wise to have some very good comparables with pools.
 
However, if you have like a contract on it and you determine depreciated cost on pool?

Different ball game if you talk to market participants. It is not PFA.
 
Surf Cat said:
No need for adjustments Robot dude... since there's "no value"

The PDR promotes safety and soundness by obtaining current observation of the subject. Provides operational simplicity and certainty of application (they thought that one up at the bar at 15th Street). They're not looking at Value and marketability.

Based on what this dude says, they still send a broker or an appraiser out to the property....$195.00 for the buyer....saves a lot of money....

No need to worry about if the property is going to come in low... close your eyes and listen to the catchphrases of this video. And this was 2 years ago. Now it's on steroids.

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Delivering a Loan Without an Appraisal​


[td]
83​
[/td]​
[td]Appraisal Amount[/td] [td]
  • For a purchase transaction, enter the sales price
  • For a refinance transaction, enter the estimated value
[/td]



... :rof:
 
DWiley said:
As I stated before, if "based on my experience" means that I consulted the library of data and analysis I have accumulated, that is perfectly fine. Unfortunately, state investigators and loan underwriters often find that "based on my experience" is code for "I don't really have any support, I just used the same numbers I usually use." As with a lot of things in life, the actions of those not doing it correctly create burden on those that are.
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I agree with the above.

Unless things have changed, Freddie, mostly did not order appraisals for REO. They used bpos.

Why?

Im guessing here. Experienced re agents know the market based on there Experience.... How many bpos had support for their adjustments? Did they state that they used matched pairs? We're they under the 15%, 25% and 10% guidelines?

Were bpos more accurate?

I could be wrong, because I really do not know the answer. Maybe the bpos did have support?

Could it be because they were more free to make adjustments based off of there Experience? Or did they have a checklist?

We have to prove every adjustment...maybe that's why we make lower and less adjustments or no adjustments at all.

Agents make way more adjustments as compared to appraisers. Most of the adjustments were also larger than the appraiser.
 
I’ll say the quiet part out loud, have your adjustments make some sense and you won’t ever be asked to prove them. :rof:
 
It’s revealing that we have started to use the expression “prove adjustments” as a substitute for “support adjustments”.

The test is not accuracy, but reasonableness. It’s only because the GSE’s demand “accuracy” (their term) of appraisals rather than reasonableness (USPAP) that “proving” adjustments has even entered the vocabulary of a profession whose product is, after everything is said, an OPINION of value.
 
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