Any new construction review appraisers out there?

[TerryRohrer]

Absolutely it can. Never said it couldn't. The question is whether it came from analyzing the market or just doing it that way every time because you rationalize it can never be any other way.

Your example above (with the minimum detail provided) does nothing to support your cause. Are all your adjustments accurate and unquestionable beyond reproach? Could a different result be achieved if adjustments were derived from other data, or gauged in a different order? Is there only one valid approach to that appraisal problem? State all your underlying assumptions and you may have a more compelling argument.

 

[CGinMN]

I has one the other day where adjusting for seller concessions resulted in a range from $383,000 to $398,000. When no adjustment was made the range tightened from $395,000 to $401,000.

Your example above (with the minimum detail provided) does nothing to support your cause. Are all your adjustments accurate and unquestionable beyond reproach? Could a different result be achieved if adjustments were derived from other data, or gauged in a different order? Is there only one valid approach to that appraisal problem? State all your underlying assumptions and you may have a more compelling argument.

Are you talking about this example? This was from another appraiser’s report that I read, so it wasn’t even my opinion. Initially the appraiser made a dollar for dollar adjustment to the sales, which were fairly homogeneous and in a tract development. Then borrower asked them to reconsider that adjustment, based on the rationale that it tightened the range of the comps (sensitivity analysis), and the appraiser agreed and raised their OMV by $5,000.

Compelling enough?

 

[Zephyr999]

Your example above (with the minimum detail provided) does nothing to support your cause. Are all your adjustments accurate and unquestionable beyond reproach? Could a different result be achieved if adjustments were derived from other data, or gauged in a different order? Is there only one valid approach to that appraisal problem? State all your underlying assumptions and you may have a more compelling argument.

School me up, since it's an above the line adjustment how is it being filtered out in that type of comparison anyway to decide if an adjustment is needed?

Upside-down approach?

 

[TerryRohrer]

Are you talking about this example? This was from another appraiser’s report that I read, so it wasn’t even my opinion. Initially the appraiser made a dollar for dollar adjustment to the sales, which were fairly homogeneous and in a tract development. Then borrower asked them to reconsider that adjustment, based on the rationale that it tightened the range of the comps (sensitivity analysis), and the appraiser agreed and raised their OMV by $5,000.

Compelling enough?

Not something I would attempt to defend, but to each their own.

 

[shrubberyvaluation]

Beast!!

This is why this profession is so jacked up. The GSEs and others allow for seller contributions.....and then they want us to be the bad guy and make SC adjustments. Arse backwards. Makes no $cents.

Here is one https://mattamyhomes.com/north-carolina/charlotte/promos/junejuly-2023

View attachment 77114

Not to mention that if I had to guess minorities probably get sales concessions at a higher rate, so that would account fore more of these so called 'biased' appraisals under contract.

 

[shrubberyvaluation]

Are you talking about this example? This was from another appraiser’s report that I read, so it wasn’t even my opinion. Initially the appraiser made a dollar for dollar adjustment to the sales, which were fairly homogeneous and in a tract development. Then borrower asked them to reconsider that adjustment, based on the rationale that it tightened the range of the comps (sensitivity analysis), and the appraiser agreed and raised their OMV by $5,000.

Compelling enough?

I suppose as long as any other adjustments or lack of are a good reflection of the market. I have never made that argument. A wider range can just be the case.

 

[TerryRohrer]

School me up, since it's an above the line adjustment how is it being filtered out in that type of comparison anyway to decide if an adjustment is needed?

Upside-down approach?

Not my approach, or one I would use or rely on or defend, so I can't help you. I think concessions in each sale need a case by case determination. The argument made, that the narrower variation proves something is entirely contingent on adjusted prices, which by definition, are contingent on the adjustments applied. And if the adjustments were measured without regard to the impact of any concessions, what has been accomplished?

 

[CGinMN]

If you don’t have any experience working with uniform/homogeneous datasets such as those in tract developments or condos projects, you may have never observed this. But once you have, you’ll stop believing that dollar for dollar is the default.

How do you handle concessions in Middle of Nowheresville, MT?

 

[TerryRohrer]

If you don’t have any experience working with uniform/homogeneous datasets such as those in tract developments or condos projects, you may have never observed this. But once you have, you’ll stop believing that dollar for dollar is the default.

How do you handle concessions in Middle of Nowheresville, MT?

Childishness doesn't really seem like you, but carry on. I'll try to gain some experience.

 

[CGinMN]

What’s childish? Answer the question. I want to know because I respect your viewpoint. I’m at least putting something out there and attempting to defend it. It seems you are just taking shots from a perch.