Active Appraisers - The "requirement" for Time Adjustment Support

[shrubberyvaluation]

I do my analysis like normal and do the bare minimal for reporting requirements. The method I used, my data source and any other relevant information.

 

[chad hampton]

I will not be adding a graphs.

 

[Tom D]

Fannie just wants you to explain how you determined an increasing or stable or decreasing market trend. There are only two ways to adjust.
A linear line for straight up or down, a non linear line for a fluctuating market.

And fannie already knows the answer. Don't do it, or don't explain it each, you will get the dreaded fannie, we will ask for a review of every appraisal from you now on, till you learn.

This has been an issue for years with fannie, now they have given you the exact rules in the march newslettter. So do as you stupidly think, but this adjustment is being watched in all your appraisals now by CU. It't like the appraisers who used the same exact $ adjustment for GLA on every appraisal. They got sanctioned, now the walking dead.

 

[sputnam]

Fannie just wants you to explain how you determined an increasing or stable or decreasing market trend.

As USPAP has always required.

 

[JTip]

Fannie/Freddie tells you the exact expectations.

I write two paragraphs; first citing three sources (F/F tells you the sources), second the results and reasoning for the adjustment or lack of adjustment.

It has become a copy/paste thing with some date/location modification. Takes no more than 5 min.

 

[shrubberyvaluation]

Fannie/Freddie tells you the exact expectations.

I write two paragraphs; first citing three sources (F/F tells you the sources), second the results and reasoning for the adjustment or lack of adjustment.

It has become a copy/paste thing with some date/location modification. Takes no more than 5 min.

This is the way to do it IMO.

 

[Overimprovement]

I'm very surprised at the large number of appraisers who apparently never make market condition adjustments in their reports. As part of my new job I routinely review commercial appraisals, and sometimes the comps can be 2 to 4 years old. Even then, there are rarely any market condition/date of sale adjustments.

So they are saying that real estate that sold 4 years ago would sell for the same price today?

Come on guys!

 

[alebrewer]

Hence the new requirements...

 

[chad hampton]

Has stable ever been defined? I consider plus or -3% to be a stable market. It’s certainly not just zero.

15 to 20 years ago you would’ve lost all your clients if you’ve marked an increasing market, but over the last 10 years or so I’ve always made market condition adjustments based on expertise and MLS published data of our metro area. That’s the safest and most reliable way to do it. You certainly don’t want 10 appraisers in a market coming up with their own system. That would result in adjustments all over the place.

 

[Surf Cat]

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.

I can't believe that in doing 5 - 7 reports a week.....with all the different property types, all the diverse neighborhoods..... incorporated, unincorporated sections in Cali.....that "everything" is stable.

That's mind blowing.....