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Annoying Stips

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Flakey

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Certified Residential Appraiser
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South Carolina
"Predominate value exceeds 25% of the final value, please comment."

"The subject site area exceeds the clients requirement for a range of 20% compared to the comparables, please comment."
 

Randolph Kinney

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Apr 7, 2005
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Retired Appraiser
State
North Carolina
"Predominate value exceeds 25% of the final value, please comment."

"The subject site area exceeds the clients requirement for a range of 20% compared to the comparables, please comment."
That's easy. The UW wants you to redefine what constitutes the neighborhood to match more closely with your appraised value.
 

Mike Boyd

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Jan 18, 2002
Professional Status
Retired Appraiser
State
California
I can't disagree with the stips. Whenever your adjusted values exceed what you have indicated is predominant you have to tell 'em why. Randolph is correct about the site values.
 

Flakey

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South Carolina
These stips are on top of very thorough descriptions of the site and neighborhood. Additionally, when the values are relatively small ($100,000-$110,000), it doesnt take much to exceed an arbitrary percentage.
 

Mike Boyd

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Professional Status
Retired Appraiser
State
California
Lenders get very picky when a property falls outside the norm.
 

Mztk1

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Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
The predominant value stip is normal. The lot size stip is silly. In my rural and semi-rural areas comparable propertiess are typically on 1/2 acre to 2 acre lots in one segment, then on 2 to 5 acres, and then from 5 to 10 acres. Having to comment on some arbibrary 20% lot size guideline for using a house with a 36,500sf lot as a comp when the subject has 30,000sf is just plain dumb. So would explaining why the lot size guideline of 20% is exceeded when the subject is a PUD lot of 5,000sf and the comparable's lot is 6,000sf.

My cynical side believes that these types of stips are found mostly with AMCs, whose objective is to make up ridiculous guidelines so they can request corrections and then when loan officers and lenders start complaining because an appraiser is killing too many deals, the AMC can go back to cut off the appraiser for "quality" issues.
 

Mike Garrett RAA

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Professional Status
Certified Residential Appraiser
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Colorado
Justifying their jobs in a slow market
 

Mountain Man

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Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Here's one I got a laugh out of from another forum...

Appraiser to comment on the differences of GLA in appraisal report to tax records on subject property.

:blink: No, not a joke. m2:
 

Mike Garrett RAA

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Jan 14, 2002
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Certified Residential Appraiser
State
Colorado
Here's one I got a laugh out of from another forum...

Appraiser to comment on the differences of GLA in appraisal report to tax records on subject property.

:blink: No, not a joke. m2:


Thats the very reason I use what is of public record if there are minor differences. If someone is going to check on you it's usually going to be from public records.
 

Flakey

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Certified Residential Appraiser
State
South Carolina
Lenders get very picky when a property falls outside the norm.

This property did not fall outside the norm. It merely fell in the lower portion of the range of values for the market area described. The neighborhood description addressed why that was true for this type property. If I had described a wider range, it would have fallen within their guideline. A statement specifically addressing a percentage of a range added nothing to the report. Might as well require an explanation why more than 50% of my sales were on one side of the road than the other.
 
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