Additional Comp Requests Lately

[c w d]

We're starting to receive a flood of additional comparable requests even when providing 2 sales within 90 days and 2 active/pending listings and the most thoroughly explained reasons why the provided comparables were provided and others were not. I believe it has now gone beyond what I believe to be reasonable. So, what's going on? Why are we continuing to get additional comp requests? My office received no less than 5 requests for additional comparables today for reports we've completed in the past 2 weeks. None of them were mine so I can't speak for what was done in those reports but I do know the people well enough to believe adequate data and analysis is being provided.

Additional comparable requests seem to have become the de facto stipulation. Are we being mined for additional data? Or is there a more sinister reason? The thought has occurred to me that by providing additional comparables when there are none it gives the client the ability to change the reports removing the less desirable comparables entirely and possibly inflate values. Or is it totally benign?

The poll is a multiple answer poll. Please vote accordingly.

 

[Mike Garrett RAA]

I gladly provide additional comps...at $150 each!

 

[c w d]

I gladly provide additional comps...at $150 each!

Ya know Mike, that would make an excellent poll question "Do you charge for additional comparables?" "yes" "no". Do it man, post a poll.

 

[CANative]

Job justification. They know they need to do their due diligence in order to stay employed and asking for additional comps is the only thing they know how to do.

 

[Patti Jury]

It is not just you. I often wonder if the mining issue is at hand as well.
The Listing comps request is just beyond me.

I recently told a client who made a threat to "review" if I did not give 3 new comps...
"PLEASE REVIEW....I beg you! " I had one current listing within a block and it was a foreclosure that was a model match listed for $4,000 higher than my estimated value.

I'm not sure right now if it is a mining issue or a CYA issue.

 

[Rufus]

I voted: No, rarely.

Out of the last 500 reports I've done I can only think of one for which additional comps were requested. I generally have five to six comparables at a minimum in each report which, in aggregate, bracket the various amenities. For the past three years or so, I've also included listings and pendings when they are appropriate. My sales comparison comments never fit in the tiny blank on page two.

 

[c w d]

I voted: No, rarely.

Out of the last 500 reports I've done I can only think of one for which additional comps were requested. I generally have five to six comparables at a minimum in each report which, in aggregate, bracket the various amenities. For the past three years or so, I've also included listings and pendings when they are appropriate. My sales comparison comments never fit in the tiny blank on page two.

I usually provide 5 as well and I most always go into addendum. So, how is your market area? Declining? Stable? Increasing? Lots of foreclosures?

 

[Rufus]

So, how is your market area? Declining? Stable? Increasing? Lots of foreclosures?

Overall, stable. However there are many areas in the inner city of Indianapolis that show declines between 20 & 40% in the past year. This true in many of the newer Vinyl Box subdivisions too. REOs around 50% in the low end inner city areas and rising. Last Vinyl City two days ago showed 37% REOs.

 

[Elliott]

If the comp request says, "Provide 3 new comparables less than one
mile from the subject with fewer adjustments" you have a MB who thinks
they can place a loan with Provident's lost leader 1/4% interest rate.

 

[The Warrior Monk]

I've received more questions this year than probably the last 10 years combined, and that is with me doing about the lowest amount of res lending work in the past decade. However, I do not receive stips regarding adding additional comps; they get tons of info regarding sales in the area in the report.

When I used to get such requests years ago, I would note that the only reason for such a request would be that they are aware of better market data, and to please forward it to me. I also used to offer to drive the requestor around past the sales/listings, and take them to lunch. If they find better data, I pay; if not, they pay. Unfortunately, no takers.