Avoiding Revisions Requests

[Tim Hicks (Texas)]

I guess I am just lucky because I get assignments every week with appraisal problems. This week a two bedroom with the second bedroom only having one egress (no exterior window or door). No other appraiser has bothered to mention this. A double wide with all the labels and data sheet removed (you can see the holes where they removed the labels). GLA off by 400 sf one or the other. Is your laser calibrated correctly? No, the tax office is just that much off. In this "gotcha" world of underwriting, sometimes there is no room to do what we do best. Prove the bedroom count adjustment for 1 bedroom home based on the one sale you could find within 30 miles? Prove the adjustment for 4800 sf workshop versus a 1200 sf workshop? They need an appraisal, but one bath is gutted? The second lot has no improvements on it, but they want it included without mentioning excess land or HBU? The entire system is made for cookie cutter appraisals. Many assignments are far from cookie cutter. 35 years in this business and I still get amazed at what some people do to their homes. I am amazed they actually thought what they did was good idea. Just run that linoleum over the ledge in the garage and call it a bedroom with a hill...

 

[Tim Hicks (Texas)]

The Appraiser measured the subject property using ANSI Z765-2021 standards and guidelines.

I see that statement all the time, then I see they included the detached gym in the GLA or a room over the garage with no interior access in the GLA or the guest house is included in GLA. Does making the statement absolve you of reproach?

 

[Tim Hicks (Texas)]

Are market conditions adjustments much less monthly market condition adjustments relevant if very few comparable sales are actually comparable? When you just have to do the best you can do with comparable sales, but they really are not close to model matches. They are just the most similar sales you can find. Is anything market conditions related relevant?

 

[Mike Ault]

Are market conditions adjustments much less monthly market condition adjustments relevant if very few comparable sales are actually comparable? When you just have to do the best you can do with comparable sales, but they really are not close to model matches. They are just the most similar sales you can find. Is anything market conditions related relevant?

The Quants think so. They love the housing price index which doesn't mention the fact that concessions went up 5% while prices went up 3%. And they think we are supposed to mark "increasing".

 

[sputnam]

The Appraiser measured the subject property using ANSI Z765-2021 standards and guidelines.

I see that statement all the time, then I see they included the detached gym in the GLA or a room over the garage with no interior access in the GLA or the guest house is included in GLA. Does making the statement absolve you of reproach?

No.... but, it is likely that many AMC reviewers will not check. They will see your ANSI statment and check that off their list.

 

[TonyB]

To save time (time is money) I am considering drastically limiting my commentary moving forward and replacing with a nice canned comment. "Additional commentary available upon 1st and 2nd revision request" Since it doesn't really matter how well you explain anything, they wont read it and ask for more.

 

[Surf Cat]

To save time (time is money) I am considering drastically limiting my commentary moving forward and replacing with a nice canned comment. "Additional commentary available upon 1st and 2nd revision request" Since it doesn't really matter how well you explain anything, they wont read it and ask for more.

An associate that I used to work with when I was doing AMC assignments came up with our master plan. "Bare minimum amount of comparables and commentary". Get in, get out quickly.

It never worked. Even in a data rich environment like Los Angeles, there are so many different and unique pocket neighborhoods that you can't just slam them out. The subject properties always were unique, on a hillside, with an expansive view, the oddball dwelling with very few competitive sales.

You can't make money and get ahead in the AMC environment.

I would really like to know how the AMC Farm appraiser does three to five assignments a day.... it has to be like a conveyor belt system where one person inspects, another is gathering the data from the MLS, another is filling out the report..... then the whole thing Loops back around to the signer. If anyone here knows, it'd be interesting to hear your experiences of doing appraisals in that environment.

 

[sputnam]

To save time (time is money) I am considering drastically limiting my commentary moving forward and replacing with a nice canned comment. "Additional commentary available upon 1st and 2nd revision request" Since it doesn't really matter how well you explain anything, they wont read it and ask for more.

LOL

 

[DWiley]

To save time (time is money) I am considering drastically limiting my commentary moving forward and replacing with a nice canned comment. "Additional commentary available upon 1st and 2nd revision request" Since it doesn't really matter how well you explain anything, they wont read it and ask for more.

Until one has had the chance to review a lot of reports from all over the country, I think it is difficult to appreciate just how hard some reports are to read. I have cited this example before, but I have seen reports where the multi-page text addendum was written in all caps with no headings and even no line breaks. Imagine you are the reviewer trying to find a statement in that.

Many of the text addenda that I have seen are VERY hard to read; many follow no logical order. They just jump around from topic to topic, often having comments on teh same topic in two totally different sections of the addendum.

We did an experiment when I was in AMCland. We asked appraisers to use a text addendum in a standard format. There was a heading for each major section of the URAR -
SUBJECT
CONTRACT
NEIGHBORHOOD
etc.

Under each heading the appraiser would put any comments related to that section. If there we no additional comments, it would say, "No additional comments"

This meant that if a reviewer was looking for a comment, then the reviewer at least knew where to look for it.

Use of the format was entirely voluntary for the panel. Those who did use the format had a significantly lower revision rate.

Of course, text addenda are going away in UAD 3.6. Commentary is not going away, just text addenda. There is plenty of room for comments within each section of the report. I think that this alone (eliminating the treasure hunt for commentary) will reduce revisions, and that is being confirmed by those already using 3.6.

 

[George Hatch]

Of course, text addenda are going away in UAD 3.6. Commentary is not going away, just text addenda. There is plenty of room for comments within each section of the report. I think that this alone (eliminating the treasure hunt for commentary) will reduce revisions, and that is being confirmed by those already using 3.6.

Organizing for the standardized sequence doesn't just make the report easier to write and easier to read , but also contributes to the SR1 development itself.