Appraisal Reviewer

[Shirley Yukon]

I never said I made up adjustments. I don't lie on my reports. Fact is, where I work (Los Angeles area), bigger lot sizes are desirable. So if i were to go in front of a State Board, I would be able to defend myself. All I said is if there is a significant difference in lot sizes, and knowing big lot sizes are more desirable, I would make an adjustment even if the comps I am using don't support it.

Bottom line is, you can argue both ways and be able to support it. For example, say in a particular city, bigger lot sizes are desirable. Lets say I use 2 comps with the same lot size as the subject. Comp 3's lot size is 2000k square feet smaller but sold for 5k more. Everything else is the same. Am I going to adjust down for lot size? No, I'm going to adjust up for it. Just by my comps, it shows that a smaller lot size sold for more but I'm still going to adjust up. In this imperfect market, you can just about argue anything. I don't know why some of you have a stick up your butt. You guys try to get so technical with your appraising. This isn't rocket science.

 

[Ghost Rider]

You're right Shirley, Appraising isn't just technical, it is a combination of art and technical ability.....The little Example you gave......

For example, say in a particular city, bigger lot sizes are desirable. Lets say I use 2 comps with the same lot size as the subject. Comp 3's lot size is 2000k square feet smaller but sold for 5k more. Everything else is the same. Am I going to adjust down for lot size? No, I'm going to adjust up for it. Just by my comps, it shows that a smaller lot size sold for more but I'm still going to adjust up.

....Sure, thats all well and good, because you HOPEFULLY have more data than just three comps to make that kind of adjustment......I normally pull 5-7 comps and 2-3 listings for all my appraisals, and grid them out, and will sometimes pull out a bunch of them, and will usually leave 4 comps and at least one listing to back up the appraisal. If all you are doing it making an arbitrary adjustment based on your opinion, without fact to back it up, you'll get your licence pulled if you ever get in front of a state board.

 

[Carnivore]

Originally posted by Shirley Yukon@Nov 27 2003, 04:49 PM
If there is a pretty significant difference in lot size, I would make an adjustment no matter what just so the lender doesn't come back at you asking why no adjustments were made. If it doesn't really effect value, make a soft adjustment.

Hmmm, I was confused about your back pedaling on this. however I will give you the benefit of the doubt and accept your change in attitude as being genuine .

We all says things from time to time that we later regret.


Eat crow while its still warm, it goes down a lot easier.

You really do need to read over your USPAP. If you dont have one, I think I can find an extra copy for you.

The offere still stands for the PDF version of USPAP 2003.

ALL: Send me an e-mail and I will send it right out.

That means you mhmerriam!

 

[Chris Colston]

Originally posted by Shirley Yukon@Nov 30 2003, 02:33 AM
All I said is if there is a significant difference in lot sizes, and knowing big lot sizes are more desirable, I would make an adjustment even if the comps I am using don't support it.

Well that certainly sounds like "making it up" to me! What do you mean you would make an adjustment even if the comps don't support it? Where does the adjustment come from then? Ever hear of just writing a comment to support why you didn't make an adjustment for a difference? How about something like "based on the utility of the site, no adjustment is warranted for site differences under XX sf." That way the underwriters won't bother you for more and you've not made an arbitrary adjustment just to make your grid look good.

Is this how you were trained? That 99.9% of appraisers violate USPAP and make up arbitrary adjustments just to keep the underwriters and reviewers happy? I suppose most of your appraisals make or exceed the desired number, too.....just to keep the client happy.

I do a lot of review work, pre-closing and post closing audits and I sure am glad I don't do any California reviews, because I would certainly be going over your reports with a very fine toothed comb.

Anything you write needs to be defensible in court, to your state board and your peers, not just the underwriters and clients. You never really know who else is looking at your work. If we, who have being doing this (appraising) for many more years than you, appear to have "sticks up (our) butts" it's just because we have witnessed what can happen to someone whose attitude is just a bit too cavalier for their own good......hope you don't wind up in the crash and burn department. :twisted:

 

[Shirley Yukon]

So are you telling me that if two average condition homes sold for 200k and one excellent condition homes with the same year built, same sq. ft. same lot size. same everything, sold for 195k, you would adjust down for condition and say that better condition homes sell for less?

Please pull your head out of your butt and quit instigating me. I don't want to argue anymore.

 

[Ghost Rider]

No, I'd investigate as to why that sale sold for so much less than everything else, and if I couldn't explain it, I wouldn't use it as a comp....

 

[Chris Colston]

Originally posted by Shirley Yukon@Nov 30 2003, 11:20 AM
So are you telling me that if two average condition homes sold for 200k and one excellent condition homes with the same year built, same sq. ft. same lot size. same everything, sold for 195k, you would adjust down for condition and say that better condition homes sell for less?

I never said any such thing! There is more to a sale than site and condition. Like MH, I would investigate to find out why the superior conditioned property sold for less. It could have been due to less favorable financing. It could have been due to the need for a quick sale because the sellers had already moved to their new location. It could have been the converse, that the sellers needed to stay after closing and the difference is in a rent back. It could have been a function of time, either the market is heading up or down depending on when the superior conditioned home sold verses the average conditioned homes. If I could not determine WHY, within the market, then I would look for another comp that was better suited to the circumstance and the subject.

I suppose these things never happen in your market so you just make the $5,000 adjustment to the lot and that makes everything even?

 

[Shirley Yukon]

Like I said, quit trying to get so technical. If the both of you really tried to research why it sold for 5k less, every one of your reports must have some kind of time adjustment, concession adjustment, etc. etc. etc.

Either that, or the real estate market in conneticut and florida must be perfect. I guess california is the only state where realtors try to negotiate and get their client the best deal possible and sometimes end up paying a little too much or a little too less on a house.

 

[Ghost Rider]

Shirley - I'm glad you can do appraisals without any technical proficiency......From what you are saying, it sure sounds like you cut a HELL of a lot of corners, and as such, I really don't consider your comments to be worthwhile to respond to anymore......When you stop working to do the job properly, it's a sign that it's time to get out of the biz......Have fun talking to the state regulatory agents when they come asking questions!!!!

 

[Jeff Horton]

Originally posted by MHMerriman@Nov 30 2003, 03:57 PM
I really don't consider your comments to be worthwhile to respond to anymore......

I second that.