Appraisal Report Revision

[Ariba]

How would you address a situation where you submitted an appraisal report and the agent challenges the value and is able to provide you with better comparables. Do you just replace the comparables and submit the revised report? How much information do you give on the comparables that have been replaced or do you just replace them and explain in addendum? Do you have any verbage for the addendum you would like to share?

 

[hastalavista]

If I were provided with superior data, I'd use that in the grid.
I may or may not take out the comparables I originally used; but it might be the case that the new data may require me to re-analyze my adjustments applied to the original comparables.
I would comment on the reconsideration and provide my rationale for concluding a different value opinion.
I wouldn't have standard verbiage for this: My comments would be very assignment/scenario-specific.

Good luck!

 

[Joe Flacco]

First I would probably let the client know that the agent provided good comps and that you need some time to verify and view the comps from the street and things like that.

Personally I don't like to remove comps I already had in unless some are very weak indicators of value. So I would probably just add the new comps and then revise the reconciliation of the sales comparison approach.

 

[J Grant]

How would you address a situation where you submitted an appraisal report and the agent challenges the value and is able to provide you with better comparables. Do you just replace the comparables and submit the revised report? How much information do you give on the comparables that have been replaced or do you just replace them and explain in addendum? Do you have any verbage for the addendum you would like to share?

What makes these comps better? And the other question would be how come you did not find them?

I would not remove the comps you have. If you feel these comps should be added, put them in as additional comp sales. If your value changes...how are you going to deal with that?

 

[J Grant]

If you already submitted the appraisal, do not remove the comps you had. Add the new ones.

What makes them better than the comps you picked?

 

[Deleted member 77547]

If they are truly superior comps, add them in, amend the value as appropriate and note in the report that this is a revised version of a report previously submitted on 05/xx/2017. Since that report was submitted superior, more appropriate sales were found and are now included in this report; consequently a change is value is warranted and is reflected in this revised report.

 

[Deleted member 134708]

I would add them while keeping originals too. Then just re-organize them however you do it. I do by lowest gross adjustment goes #1, next #2 etc.

Then just explain why, how and what happened and change value.

 

[J Grant]

Do not change the order of your original appraisal. The client has a copy of the original and will likely ask you to change the order back.

Be careful with your commentary, again, what makes these sales "superior"? If you use that word you sound like an idiot for not having found them yourself .

I would write something like in the ROV process the RE agent provided 2 relevant sales that are added to the report as comps because they bracket the view or are more recent or...( reason, why are they being added/ ??

Then explain that the addition of these comps has resulted in a value change from X $ to Y $ (if the value does change)

 

[hastalavista]

I understand this is advice, and there is more than one way to skin a cat. I'm not saying it is bad or wrong, but I do disagree:

Do not change the order of your original appraisal. The client has a copy of the original and will likely ask you to change the order back.

I find the fact that the client has a copy of the original report irrelevant.
The final report is the final report. In theory, no comment is necessary; only a new report date. In practice, I think it is prudent to explain in the latest version why things have changed from an earlier submission.
The new report is just that: a new report. Take out, add-in, or do a combination of the two with the sales one thinks best reflects the subject and are most meaningful to the analysis.

Be careful with your commentary, again, what makes these sales "superior"? If you use that word you sound like an idiot for not having found them yourself .

I strongly disagree. I've talked to many appraisers who won't change their reports even when presented with superior data simply because they do not want to look "like an idiot".
By implication and anyone would infer, if there are new sale comparables added and adding them changes the opinion of value, they must be superior in some respect to what was originally analyzed (otherwise, they wouldn't move the needle). Indeed, the only reason the value does change is because they are superior to what was originally considered.
OP: If you are hung up on using the word "superior data", then don't use it. I wouldn't flinch at citing it as being superior to the original data analyzed; that is the entire reason why I've reconsidered the value.

Again, good luck!

 

[J Grant]

Note I did support his using the new sales as well as changing the value if warranted...was trying to preserve a safety net for him how to handle it...esp with first part, he may want to call his client and ask if they have any protocol
if he adds new comp sales...I know from direct experience a good many lender clients want the original order of comps preserved once a report has been submitted, with new comps added as additional ...but his client may not care.

As far as superior...he is free to use that word if he wants. I asked him what made them superior, no answer...( his prerogative but I am curious...why are they superior?) You gave good advice and I believe I did as well...he can use the advice that best suits him and situation/client.