Client asking for specific data on appraisal

[apprtech]

This was what I was asked for by a client in an addendum letter about a recent 1004 appraisal I completed.

"Please provide the data & analysis used to derive the room count, condition and GLA adjustments. If paired sales analysis is utilized, the appraiser cannot just say an adjustment was made and the amount, based on experience, or paired sales were used; the actual pairing/analysis must be included in the report. If another method is utilized, the thought process behind it needs to be thoroughly explained."

This is a Summary Report and I have never been asked to put my Paired Sales data in my report.

What say you?

 

[The Bob]

I would just scan the pages the data is on. Good luck figuring mine out with all the chicken scratch I typically have. I use group sales data to support most adjustments, but I always look at the comps too. Usually the data to support, say a bath adjustment, will give a wide range of values. So my final adjustment is something that makes sense with comps used in the report with a comment like.... "the adjustments for bath count are supported among the comparable's."

 

[George Hatch]

The GSEs and lenders are cracking down on adjustments because many appraisers aren't putting any effort at all into developing them. They're saying one thing (I did it) but doing another (made no effort).

Paired sales are comparatively rare out in the wild and I never say I used it if I didn't. If you're comparing groups then say that. If you're using sensitivity analysis then say that. If you're using regression analysis of some sort then say that.

Personally, I mostly use sensitivity analysis - compare my wider set of comps to each other to see which combination of adj factors is the most efficient in narrowing the range. Once you set up a template you can manually test several iterations in just a couple minutes. But group comparisons (this group of 4bd vs this group of 3bd) is a persuasive analysis, too. Then I refer to the efficacy of the combination that I used. We started with a 10% variance among the sales and ended up with a 3.5% variance, and I was unable to identify any other combination that was more efficient.

Something is better than nothing. An inadequate combination of adjustment factors or an inconsistent application of them leads to a less refined adjusted range, which then necessitates the use of more subjectivity in reconciling them. A narrower and more refined range requires less subjectivity in the reconciliation.

 

[Mejappz]

It looks like they want the printouts of your adjustments in the report. Good luck because most appraisals pumping out large volumes for the AMCs simply say adjustments extracted from paired sales. You get what you pay for no money and no time to complete reports what do you expect?

 

[apprtech]

It looks like they want the printouts of your adjustments in the report. Good luck because most appraisals pumping out large volumes for the AMCs simply say adjustments extracted from paired sales. You get what you pay for no money and no time to complete reports what do you expect?

The is not a Self Contained report, I know they don't call them Summary anymore, but that is what it is. I told them why I made the adjustments on each comparable and that it was X amount.

 

[Mejappz]

Well, it's dammed if you dammed if you don’t. I've done it both ways inserting the calculations into the report and some will then come back and say they don’t understand. Then I have done it the other way and written a short paragraph explaining what I did and telling the client the calculations are in the workfle and available for review. Only then to have the client drop my “tier” rating because I did have the calculations in the report.

 

[djd09]

tell them that is proprietary data...

 

[George Hatch]

It looks like they want the printouts of your adjustments in the report. Good luck because most appraisals pumping out large volumes for the AMCs simply say adjustments extracted from paired sales. You get what you pay for no money and no time to complete reports what do you expect?

If the GSEs hold the line then those appraisers will be compelled to either conform or withdraw from working those pipelines. If the GSEs don't hold the line then nothing changes.

 

[Elliott]

I'll spend a few minutes finding it, but the Biden administration has been forestalling foreclosures (not dissimilar to paying off student loans), amounts to billions of dollars. So why do appraisals even matter, Uncle pays off bad news. The other reason they like to squeeze data and adjustments is they can then turn around and force the lender to buy back the mortgage. There is probably some servicer (political contributor) who is making big bucks too.


..........................

"Federal Housing Administration Extends Current Foreclosure Protections for Borrowers in Maui County, HI​

To assist borrowers impacted by the August wildfires, mortgage servicers will be prohibited from initiating or completing foreclosure actions through May 6, 2024.​

Foreclosure Moratorium Extension 2024
Find out if a moratorium on foreclosures is likely in 2024.

...................

Foreclosure Moratorium for VA Loans Through December 31, 2024

The VA is asking servicers to put a foreclosure moratorium in place through December 31, 2024. During this time, the VA expects servicers to hold off on initiating, continuing, or completing foreclosures on VA-guaranteed loans, except in the following situations:

the property is vacant or abandoned
the borrower doesn't want to keep the home
at least 210 days have passed since the servicer last received a monthly payment from the borrower and the borrower isn't responding to the servicer, or
the servicer has evaluated the borrower for all home retention options and determined that none of the available options, including the new VA Servicing Purchase (VASP) Program, will work for the borrower.

Under VASP, the VA will buy defaulted VA loans from other companies, modify them to a fixed 2.5% interest rate, and add them to a VA loan portfolio. To qualify for the VASP program, you must meet the following eligibility criteria:

the loan must be 3 to 60 months delinquent ...... "

....................

"Money for nothing and your chicks for free."

 

[Vermonter]

Good luck figuring mine out with all the chicken scratch I typically have.

Right? My CSVs and spreadsheets have no labels so it wouldn't help them at all

This is a Summary Report and I have never been asked to put my Paired Sales data in my report.

Claim "intellectual property" and tell them that would require an additional fee and non disclosure agreement.