Adjustment Support Request

[JEFFSMA]

I have a lender asking me to provide the specific market data utilized to support the applied adjustments while avoiding the use of non-specific commentary. For instance, if paired sales were used, please list the specific paired sales used to derive the adjustment. if a different method was used the thought process needs to be specifically explained. A "show your work" approach fo adjustment support has been more heavily enforced by Fannie Mae and Freddie Mac. As such, most lenders no longer accept boiler plate commentary that could be applied to any appraisal report.
I am looking for suggestions on how to handle this request

 

[Trihard]

As a certified appraiser you do not know how to support your adjustments?

 

[RCA]

I have a lender asking me to provide the specific market data utilized to support the applied adjustments while avoiding the use of non-specific commentary. For instance, if paired sales were used, please list the specific paired sales used to derive the adjustment. if a different method was used the thought process needs to be specifically explained. A "show your work" approach fo adjustment support has been more heavily enforced by Fannie Mae and Freddie Mac. As such, most lenders no longer accept boiler plate commentary that could be applied to any appraisal report.
I am looking for suggestions on how to handle this request

Start using MARS regression nothing beats it.

 

[glenn walker]

I have a lender asking me to provide the specific market data utilized to support the applied adjustments while avoiding the use of non-specific commentary. For instance, if paired sales were used, please list the specific paired sales used to derive the adjustment. if a different method was used the thought process needs to be specifically explained. A "show your work" approach fo adjustment support has been more heavily enforced by Fannie Mae and Freddie Mac. As such, most lenders no longer accept boiler plate commentary that could be applied to any appraisal report.
I am looking for suggestions on how to handle this request

Rule #1 never claim your using paired sales if there not in your grid.

If you just made the adjustments up or used your standard list of adjustments then you need to think about how to dig yourself out. Are there any particular adjustment their attacking ?

The GLA Locations...Lot Sizes...tell us and maybe I can help but if it's about all your adjustments that's harder.

 

[Surf Cat]

I am looking for suggestions on how to handle this request

Which adjustments are they looking for support for? How did you determine those adjustments? That's all they're looking for.

A Sensitivity analysis was utilized to determine a $90 per square foot adjustment for GLA.

The difference between comparable #1 (a remodeled sale) and comparable #3 (a non-remodeled sale) revealed a difference of $125k. This amount was applied accordingly to the comparables in original condition like that of the subject.

This is all they're looking for.... these are just examples, make sure the numbers work out with the comparables in the grid.

 

[Overimprovement]

I have a lender asking me to provide the specific market data utilized to support the applied adjustments while avoiding the use of non-specific commentary. For instance, if paired sales were used, please list the specific paired sales used to derive the adjustment. if a different method was used the thought process needs to be specifically explained. A "show your work" approach fo adjustment support has been more heavily enforced by Fannie Mae and Freddie Mac. As such, most lenders no longer accept boiler plate commentary that could be applied to any appraisal report.
I am looking for suggestions on how to handle this request

May I ask how you derived your adjustments? Especially GLA, beds, baths, and site size? What was your GLA adjustment?

 

[glenn walker]

Which adjustments are they looking for support for? How did you determine those adjustments? That's all they're looking for.

A Sensitivity analysis was utilized to determine a $90 per square foot adjustment for GLA.

The difference between comparable #1 (a remodeled sale) and comparable #3 (a non-remodeled sale) revealed a difference of $125k. This amount was applied accordingly to the comparables in original condition like that of the subject.

This is all they're looking for.... these are just examples, make sure the numbers work out with the comparables in the grid.

Can you please give us an example
on how your sensitivity analysis works because we tried to replicate it using your GLA adjustments and using the same $75.00 Per Sf on differences in the GLA but our spreads were getting wider not pulling in tighter and created larger differences. Our very Insensitive reviewer is questioning your so called sensitivity analysis because it can't be replicated. Just playing with you Surf Dude but expect pushback.

 

[glenn walker]

Deleted.

 

[Surf Cat]

Can you please give us an example
on how your sensitivity analysis works because we tried to replicate it using your GLA adjustments and using the same $75.00 Per Sf on differences in the GLA but our spreads were getting wider not pulling in tighter and created larger differences. Our very Insensitive reviewer is questioning your so called sensitivity analysis because it can't be replicated. Just playing with you Surf Dude but expect pushback.

Well....I use a spreadsheet Lol....but before that I used to do it manually all the time. After market, condition, location, etc., adjustments....play with the number until you get the tightest range of the adjusted sales.

Interesting that the OP hasn't replied considering it's in an urgent thread. We're just guessing what the problem is.

 

[glenn walker]

Well....I use a spreadsheet Lol....but before that I used to do it manually all the time. After market, condition, location, etc., adjustments....play with the number until you get the tightest range of the adjusted sales.

Interesting that the OP hasn't replied considering it's in an urgent thread. We're just guessing what the problem is.

Hopland AKA CA Native used to say the Grid on your form is your spread sheet and in sensitivity your biggest driver is your GLA adjustments and then he went from there.

I'm Insensitive but my best interaction with one of our appraisers was I asked him how he arrived at his GLA adjustment and he flew off the handle and said he used his old cheat sheet and made the rest up and if I could Fing do better just give him the adjustments to use.

Funny I didn't get upset I responded with okay your at least honest when most appraisers would have started bull**** about using regression and advanced analytics software they didn't even own.