Collateral Underwriter "suggested Comparables"

[Meandering]

Sorry, Timd, i also should have added the 15/25 might have not only kept some from choosing the best comparables, but also kept some from performing the proper analysis (adjustments), which obviously UAD has indicated, which resulted in the removal of the guideline. Good move all the way around, imo.

So,

Would the "best comps" have net adjustments below 15% and less than 25% gross?

If those are the "best comps" you're not going to move the indicator dial on Fannie, because they want to see more comps with adjustments OVER 15% and 25% WHICH then, by default are NOT THE BEST COMPS.

Fannie's data shows that about 6.4% of comps exceed guidelines. So to have a guideline for such a small percentage of work, well, it is just not worth it to them.

 

[residentialguy]

So,

Would the "best comps" have net adjustments below 15% and less than 25% gross?

If those are the "best comps" you're not going to move the indicator dial on Fannie, because they want to see more comps with adjustments OVER 15% and 25% WHICH then, by default are NOT THE BEST COMPS.

Fannie's data shows that about 6.4% of comps exceed guidelines. So to have a guideline for such a small percentage of work, well, it is just not worth it to them.

Huh???
When did they ever equate 15% and 25% with not being the best comps?

 

[Terrel L. Shields]

When did they ever equate 15% and 25% with not being the best comps?

The logical conclusion is that you need 3 comps that need zero adjustments

 

[residentialguy]

The logical conclusion is that you need 3 comps that need zero adjustments

lol...I think you've been sippin Marion's moonshine.

 

[Meandering]

Sorry, Timd, i also should have added the 15/25 might have not only kept some from choosing the best comparables, but also kept some from performing the proper analysis (adjustments), which obviously UAD has indicated, which resulted in the removal of the guideline. Good move all the way around, imo.

So,

Would the "best comps" have net adjustments below 15% and less than 25% gross?

If those are the "best comps" you're not going to move the indicator dial on Fannie, because they want to see more comps with adjustments OVER 15% and 25% WHICH then, by default are NOT THE BEST COMPS.

Fannie's data shows that about 6.4% of comps exceed guidelines. So to have a guideline for such a small percentage of work, well, it is just not worth it to them.

lol...I think you've been sippin Marion's moonshine.

Not my moonshine, Fannie's shine maybe

Seems a lot of people go blind with Fannie shine.

Of course adjustments are below 15%/25% because those are the best comps. What's the biotching about?

.

 

[Eli]

lol...I think you've been sippin Marion's moonshine.

Funny. Idk res, maybe just not in my and your markets and the majority of the U.S. Forget standard fees and turn times. They suck in most markets.

 

[timd354]

So,

Would the "best comps" have net adjustments below 15% and less than 25% gross?

If those are the "best comps" you're not going to move the indicator dial on Fannie, because they want to see more comps with adjustments OVER 15% and 25% WHICH then, by default are NOT THE BEST COMPS.

Fannie's data shows that about 6.4% of comps exceed guidelines. So to have a guideline for such a small percentage of work, well, it is just not worth it to them.

All else being equal (such as location, date of sale, etc.), comps with lower adjustments are more like the subject than comps with higher adjustments and would generally be better indicators of the value of the subject property...this is rather obvious, so I am not sure what about what point you are trying to make in your post.

 

[residentialguy]

All else being equal (such as location, date of sale, etc.), comps with lower adjustments are more like the subject than comps with higher adjustments and would generally be better indicators of the value of the subject property...this is rather obvious, so I am not sure what about what point you are trying to make in your post.

When you have sufficient market data to quantify an adjustment for all the variances. As you know, that is often not the case. A comp has a quantifiable land variance for example vs a not as comparable with variances that are qualitative. The higher adjusted comp is superior.

...or a comp is need to show contributory value of an aspect that the other lower adjusted comps lack.

Not as "general" as you might think. Answer is: Maybe

 

[Meandering]

All else being equal (such as location, date of sale, etc.), comps with lower adjustments are more like the subject than comps with higher adjustments and would generally be better indicators of the value of the subject property...this is rather obvious, so I am not sure what about what point you are trying to make in your post.

Right, I posted because of Fannie grousing about net adjustments being less than 15% across the country and price ranges.

Their inference from their chart is that adjustments are too low, when actually, it shows appraisers are using the best comps.

This has nothing to do with differences in sale prices, because the gross and net are a percentage of the sale price, so the dollar amounts of the gross and net would change with the sale price changes, not the percentages.

.

 

[Eli]

Right, I posted because of Fannie grousing about net adjustments being less than 15% across the country and price ranges.

Their inference from their chart is that adjustments are too low, when actually, it shows appraisers are using the best comps.

This has nothing to do with differences in sale prices, because the gross and net are a percentage of the sale price, so the dollar amounts of the gross and net would change with the sale price changes, not the percentages.

.

I agree on the surface, but you are assuming that some highly skilled appraisers have not reviewed some appraisals based on the indications revealed from UAD analysis. That is not a reasonable assumption, which also means we don't even know the half of the story of UAD analysis. They are being nice, which won't last. And you know that higher authorities know way more than we do. So, change is coming based on the little bitty bitty bit we know.