Appraisal Report Revision

[Ariba]

he missed them because he used his target sale price in his search criteria

No, they were not missed because they were found not to be comparables!

 

[Terrel L. Shields]

Then why are they better comps after the agent provides them if

they were found not to be comparables!

I am missing something. Did you change the report?

 

[Ariba]

Then why are they better comps after the agent provides them if

I am missing something. Did you change the report?

No. As I said they were found to be not comparables.

 

[Terrel L. Shields]

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?

That's not what I read in your original post.

 

[Ariba]

That's not what I read in your original post.

This was a theoretical question. I never said the comparables provided by the agent were better. The question was how you would handle such a situation.

 

[Terrel L. Shields]

The question was how you would handle such a situation.

What's to handle? No, no, and L no.

 

[Ariba]

And the question is......................

 

[J Grant]

The point is, appraisers to do a credible job eliminate sales as well as include sales to narrow it down to find the smaller set of best comps.

The problem with ROV is that inevitably, the list of supposed "comps" sent to appraiser to review is exasperating, because they turn out to be sales that do not qualify as comps and thus were eliminated/excluded for good reason. In fact, some are so ludicrous in either price point or location or other factors that appraiser did not "see" them in their searches.

Such as if I were searching for a comp for a 1950 built 1200 sf avg condition ranch house, I would not typically include a search of brand new 2000 plus sf ranch houses...but that superior new home sale a sale might be sent by a RE agent or owner trying to get a refi value higher.

Is it possible for an appraiser to miss a "good sale" in their searches? Of course it is possible, but if the appraiser is competent usually the fact they miss a sale here and there does not really affect things overall. But having to waste time responding to ROV and facing the pressure does change things. We often see on this site appraisers say they turn down any purchase appraisal where they feel CS price may not come in for this very reason, and even when appraisers accept work and find themselves in this situation it affects things.