Choosing Comparables?

[Eli]

How many appraisers choose bad comparables because their comparables were chosen before inspection of the subject? How much of this is based on time pressure and how much does it hurt the overall appraisal process?

 

[Peter LeQuire]

I prefer to think that I didn't research the subject property thoroughly enough to select appropriate comps. There is also the "ain't no dang comps" phenomenon that requires a more extensive search for sales information than anticipated. It also results in significantly more time, and often more driving. It's one thing to have to retreat to the office to do more research for a nearby property: it's quite another to have that happen when the properties are a county away, rural, and dispersed.

 

[J Grant]

I nearly always find better comps after inspection and having time to pore over listings. For that reason, I only accept work in a small area ( south half of county, mainly), in case I have to go back to photo. Many of assignments the comps are in gated communities where client accepts MLS photo which makes it easier in those cases.
I definitely think that the over emphasis on time pressure adversely affects reports.

 

[Meandering]

There is a big difference between choosing non-comparable sales prior to inspection, and
using non-comparable sales in a report, because you were too lazy to look for better ones after the inspection.

.

 

[Sid Holderly]

About a third of the time what you think you have, based on MLS, county records and aerials, is not what the subject actually is. Some analysis of the inspection data is needed before a viable comp selection can be made. This adds a lot of cost (time) to especially rural appraisals and the reason my stated fee is high. If it turns out to be easy I may discount the fee for the local banks that do not lock me in to a price ahead of time (like the AMC's).

 

[Eli]

Ya'll are good. Give me some more.

 

[miktay]

How many appraisers choose bad comparables because their comparables were chosen before inspection of the subject? How much of this is based on time pressure and how much does it hurt the overall appraisal process?

Eli,
This might be the single biggest problem in residential appraising.
The answers to your questions are: 1. Most 2. A lot.

 

[RSW]

How many appraisers choose bad comparables because their comparables were chosen before inspection of the subject? How much of this is based on time pressure and how much does it hurt the overall appraisal process?

I take a list of comps with me when I go to the subject property. I sometimes take those photos before the inspection and sometimes after the inspection. I find that once in a while I will have to find better comps. either due to the house being bigger or smaller, in better or worse condition or some other reason. I do multiple searches when I search so I have most of the sales in my workfile. I just load the workfile on a thumb drive and take it with me. The comps. are in the workfile as pdfs. Sometimes I have to stop at a McDonalds and do another search in order to locate better sales. I won't use bad comps. unless that is all that is available.

 

[Deleted member 134708]

Recently thinking about this. I had 4 different appraiser mentors throughout the start-up process. All would pick their comps in about 15 minutes then speed to appointment, shoot comps then come back to find all their comps were junk. 50% of time they would go back out shoot new comps and 50% "make originals work."

I have never understood this and is a waste of time. I go see property 1st, come back to office, choose comps 1 time, then go shoot them with a second visit. For me, doing either way is the same amount of time but the latter has 100% more quality behind it.

Got a call from FHA doing routine audit. Person called me to just say my work was "excellent." Only thing she said was I was working way too hard as 2 of the 3 reports had 9 comps.

 

[ucbruin]

Recently thinking about this. I had 4 different appraiser mentors throughout the start-up process. All would pick their comps in about 15 minutes then speed to appointment, shoot comps then come back to find all their comps were junk. 50% of time they would go back out shoot new comps and 50% "make originals work."

I have never understood this and is a waste of time. I go see property 1st, come back to office, choose comps 1 time, then go shoot them with a second visit. For me, doing either way is the same amount of time but the latter has 100% more quality behind it.

Question.....since you don't mind making 2 trips to the subject's neighborhood, have you ever considered taking some "sales data" with you during your initial trip? Maybe those sales would make good comps and you would eliminate the need for a 2nd trip? And if they aren't any good, you were planning on making a 2nd trip anyway.

Got a call from FHA doing routine audit. Person called me to just say my work was "excellent." Only thing she said was I was working way too hard as 2 of the 3 reports had 9 comps.

The appraisers that trained me thought 5-6 comps were too many and felt that it was an indication that I wasn't sure of my work.

I'm not saying that pertains to you.