Client asking for specific data on appraisal

[apprtech]

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



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

I responded it was not a Self Contained Report and gave a little clarification in hopes they felt they won and then sent it in. When I did no one even looked at it and sent it right through.

 

[jay trotta]

I responded it was not a Self Contained Report and gave a little clarification in hopes they felt they won and then sent it in. When I did no one even looked at it and sent it right through.

Thier goal was accomplished; made you question your own thought process and wasted your time (2 wins for them- 0 for you)

 

[George Hatch]

asking 60,000 appraisers to show their work is going to result in at least 10,000 different formats. That isn't going to do anything for any of the readers. Fannie/Freddie or any of the big box lenders could reduce all the confusion in the market by posting examples of what they consider to be sufficient to purpose for what they're requiring.

The last thing we need is reviewers applying their own personal interpretations of a vague and generic "provide support" directive to everyone else's work.

 

[Tom4value]

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?

My guess, based on the specific example they used, you said, “based on experience”. That is code for, “POA”. If you didn’t, you must have-through other wording or lack of words-given that impression. GSEs are cracking down on lazy comments (see another topic in the General category of this site).

I rarely get something like this, though I admit, I have. That is because I try and explain the adjustments rather than just point them out. They don’t have to be told you adjusted comp 2 $10,000 for location. They can see the grid. What they can’t see is HOW you arrived at that.

Do I provide the data on all adjustments? No. However, I do for the intangible adjustments, i.e., location, quality of construction, view, etc. Usually, it is nothing more than, “comp 2 is adjusted for location next to a commercial property. Support is from comparison with comps 1 and 3, which have locations similar to the subject property.”

For across the board adjustments, which underwriters cringe with, I state, “support for the pool adjustment was derived from a sale at 123 Main Street, a dissimilar property that sold in May for $zzz,zzz. This property was compared with two other sales that were similar except for a pool, the difference in prices, support an adjustment of $10,000.” Something like that is really all you need to say.

When times are slow, I work on a database of adjustments for the smaller items (bath, garage counts, C-air, as well as GLA adjustments). I then plug them in, which makes pairing analysis for the other adjustments easier to explain in the comments.

Do they really expect you to quantify every single adjustment? No. But if you explain like the above, the underwriter gets the feeling that you actually do put thought into the adjustments and will leave you alone.

 

[Terrel L. Shields]

a vague and generic "provide support" directive to everyone else's work.

I will be more than happy to provide SUPPORT (not proof) for every adjustment. Just say so and pay me by the hour. To add support to maybe 4 or more adjustments will run you an extra couple hundred up to maybe $1,000. Agree to pay regardless, and I will be happy to comply. But again "SUPPORT" implies something not necessarily precise so it may be that the data shows a range of $3,000 to $15,000 for a fireplace, or $100,000 to a negative $40,000 for a pool and pool house...and guess what? I get to pick the number in that range. There is nothing further to 'support'.

 

[George Hatch]

Easier if they just developed a form for appraisers to populate and complete. Then everyone can at least get an idea of how where lies the point of diminishing returns in terms of time/effort.

 

[Tom D]

Maybe you got a bad CU score, or CU says your adjustments aren't what others are using, maybe AMC monkey question. If this is a good client, well, do your best. If not, black list them.
On top of the beautiful Terrel comment, i would include the following with it, and on every appraisal. Who ever thought of these questions have never sold real estate with emotions & hot button only involved, not a qualitatively adjustment for every difference.

The Appraising Residential Properties, 4th Edition, Appraisal Institute, "Other Quantitative Adjustment Techniques”, Page
344 further states: “…In instances where paired sales analysis is not conclusive, the appraiser may apply judgment to resolve
the problem." The adjustments resulting from the appraiser's judgment is based on a study and understanding of historic or past
buyer preferences. It further suggests that cost and depreciated cost data may be used with the appraiser arriving at the value
contribution (not cost new) of certain features. The process of supporting the contribution of individual variables (features) is
limited and often difficult to quantify, with adjustment deemed to be qualitatively supported unless otherwise addressed. All
methods of supporting adjustments are usually limited by inherent uncertainties within the applications themselves.

Adjustments, in this report, are based on a combination of Paired Analysis with Sensitivity and/or Trend Analysis & on a study
and understanding of historic or past buyer preferences. Support for adjustments may be based on multiple applications and
rarely do two methods return identical results with a high degree of accuracy. While not always 'strongly' independently
supported, collectively, the adjustments serve to narrow the adjusted value range of the comparables in support of the subject's
'most probable selling price' commensurate with the definition of Market Value set forth herein.

 

[sputnam]

The Client can ask. If they requested it before you accepted the assignment, you have to give it to them. If they asked after the appraisal report was delivered, you have options. You can comply with their request (shouldn't be a big deal... you all that in your work file.....right?). You can say, 'Sure but, since that will require some additional time, there will be an additional fee'. You can tell them 'No'. Which you choose is a business decision. How much do you like the Client.

 

[ucbruin]

You can comply with their request... How much do you like the Client.

At this point in appraisal time....
Unless an appraiser has a steady and stable additional source of income....
I suggest one should "like" all clients that one accepts assignments from...

 

[Tom D]

Also, relative to the amount you get paid. If you can figure out an easy way that shows you didn't pull it out of the air then you won't be ever asked again. I normally only have a couple adjustments in my big urban area. So for bathroom i comment on cost new &15,000 minus any depreciation and/or floor location influence. We have baths in finished basements here and in finished sheds. It's all row homes. Now you never have to go any further comments, your adjustment on the grid speaks for itself. You can say that for any physical piece.

Look for the GLA excell chart on this blog. It actually works well most of the time, you can adjust it. The chart looks good in the report. And have a separate page called adjustments to make it easier to find and read.

You idea is to show that you gave it thought, without having to show pages of calculations. I have never been asked what you have been asked. Make yourself smarter than the average dope you have to compete against. My appraisal is literally my work file.