"Quantifiable Market-Derived Methods" for adjustments required by FNMA/USPAP

[NC Appraising]

This is funny.

Most appraisers pre internet, had researched lists. Most had research assistance or trainees to derive and update the adjustments.

Post internet, with online data and import comp features...appraisers were able to become super skippy's. Dust in the wind as some would say. Churn and burn. these new and shiny words known as sensitivity analysis and grid analysis....

Let's be real here...the reason appraisers are all but hurt is because they can't support the adjustments.

They use 3-4 comps make adjustments from the comps that were used in the grid and move on....grid and Sensitivity Analysis.

Lenders and the GSEs are just calling their bluff....and the appraisers are just deer in the headlights

 

[djd09]

if the enterprizes gave a rat about accurate adjustments they would let the appraiser into CU...hey Mr. GSE, riddle me this, how do mortgage brokers do adjustment when they waive the appraisal...i cant stop laughing

 

[NC Appraising]

if the enterprizes gave a rat about accurate adjustments they would let the appraiser into CU...hey Mr. GSE, riddle me this, how do mortgage brokers do adjustment when they waive the appraisal...i cant stop laughing

You just had to bring up CU....

My report was rejected....the CU gave the lender 3 sales for me to consider...

Appraised value 730k. 8 sales and listings from within the subjects pud.

CU sales
1 sold for 900k with a pool. To be fair, it's was the same model as of the subject.

2nd in a adjacent pud, pool and higher quality sold 870k

3rd.....had a pool. Sold 810k.

Subject doesn't have a pool. Refi, but was on the market for 95 days and expired 1-25 at 765k.

SO..MY quality score went from being the second best in the county to the dead last 15.

And you wonder why so many are leaving this waste land known as the appraisal profession.

 

[Fernando]

Lately all my reports get approved. No revisions unlike in the past.
With certain lenders, you know what they are looking for.
Yes, it takes more work but I'm a step ahead of them.
I would normally do the appraisal the Fernando way.
Then I look at my comps and see what the lender would ask with those darn bracketing. Ugh.
Recent report, I didn't get the "comps" they wanted to see.
So I had to get those that fit their criteria and put those sales as additional comps to make lender happy.

 

[Fernando]

Especially, by you own admission you expand the neighborhood to get enough data to populate the 1004mc to your liking

That's one way to do it.
What's your point? 1004MC can be manipulated and set the narrative what the appraiser wants.

 

[Dublin ohio]

Lately all my reports get approved. No revisions unlike in the past.
With certain lenders, you know what they are looking for.
Yes, it takes more work but I'm a step ahead of them.
I would normally do the appraisal the Fernando way.
Then I look at my comps and see what the lender would ask with those darn bracketing. Ugh.
Recent report, I didn't get the "comps" they wanted to see.
So I had to get those that fit their criteria and put those sales as additional comps to make lender happy.

You need better clients before your manipulation comes back to bite you in the azz

 

[Fernando]

You need better clients before your manipulation comes back to bite you in the azz

Don't worry. Clients don't check 1004MC.

 

[Terrel L. Shields]

They use 3-4 comps make adjustments from the comps that were used in the grid and move on....grid and Sensitivity Analysis.

There was a time when it was simply a process of applying sensitivity analysis within the grid by narrowing the range of adjustment. Quick comparisons were made in your head. They were as reliable as SA, but you have no graph - and "show your work" is now the standard. That is easy to do with excel. real easy so why not do it?

 

[NC Appraising]

There was a time when it was simply a process of applying sensitivity analysis within the grid by narrowing the range of adjustment. Quick comparisons were made in your head. They were as reliable as SA, but you have no graph - and "show your work" is now the standard. That is easy to do with excel. real easy so why not do it?

Don't get me wrong, I use sensitivity and grid analysis.

I learned a long time ago that only using the comps in the grid to derive the adjustments will, may and sometimes could get some less than credible results....especially when using less comparable sales for bracketing purposes. Or when other not known issues affected the sale price....or the sale was a outlier.

 

[Dublin ohio]

Don't worry. Clients don't check 1004MC.

From your posts. it appears your clients only make sure all of the boxes get checked