Comment on sales over 6 months

[Dale Hill]

My previous post was simply to identify yet another miconception of what Fannie does and does not state as their guidelines.

 

[JSmith43]

My previous post was simply to identify yet another miconception of what Fannie does and does not state as their guidelines.

I haven't skimmed through the Fannie appraisal section lately, but it used to say what Mike Phillips referenced, back in the '80's, and I know it to be standard practice, at least for the old timers.

 

[Webbed Feet]

To All,

A serious comment for you.

I read the examples of what people place in their reports regarding this and in my opinion the comments all fell wanting for something meaningful. Appraisers, as a group and especially residential ones, have a really bad habit of only providing a litany of the obvious instead of actually explaining diddly. In fact, they rely on nothing but boiler plate to carry the entire appraisal report. Every board complaint I have ever filed had reports involved that claimed to have used the best comps and all stated the obvious. "I have used the best comps. I have made adjustments. Two comps are over six months old. This comp was painted blue.".... Statements like this do not cut it!

Why don't you attempt a little addendum typing for a change? Such as:

Comparable Search: Due to the factors of complexity, as explained in the Neighborhood and Improvements sections of this report, several comparable searches were performed. As a result a total of 86 active listings, 37 pending sales, and 24 closed sales were considered against the subject's value influencing factors. This list was narrowed to 4 actives, 2 pendings, and 6 closed sales that were field driven for curb viewing. Of this group those used on the 1004 Sales Comparison grid were deemed the best to bracket the needs of the analysis. However, those not so used were still considered. The following is the specifics from the research and analysis.

SALE COMPARISON ONE: This sale was selected for it's site acreage bracketing. Research found the interior .......................................... Kitchen was gutted and remodeled with new ..........................................and ......................just two months prior to the listing.

SALE COMPARISON TWO: This closed sale was selected for it's simlar outbuilding but is noted to be weakened by .................................... Other items considered were it's proximity to.............................. due to ....................

SALE COMPARISON THREE: Chosen for proximity, recent closing date, and similar GLA. Weakened by less similar acreage and lack of outbuildings which resulted in adjustment percentages being outside the general guildelines. However this was unavoidable as the similar GLA was needed for the analysis. Research also found that the market reaction to this sales .................................................... needed to be considered due to ................................................

ACTIVE LISTING FOUR: Used to aid underwriting to reflect current market conditions from the declining market as explained in the Neighborhood section of this report..... The current listing price against the earlier closed contract prices of the closed sales shows a need for the proven time adjustment that.......................................................

SUMMARY OF SALES COMPARISON APPROACH:

Not used on the grid, but considered were MLS #'s xxxxxxx, xxxxxx, xxxxxx, xxxxxxx, and xxxxxxxx. Research showed these had proximity issues and were outside the school district or ..... blah blah blah ... so due to the location differences ........... xxxxxxx was found to not be an arms length sale as the seller ...............................................


****************************************************

In short, stop with the litany of what any fool can see is already on the Sales Grid and get specific regarding your research and exactly why you selected what you selected and why you did not select other properties for analysis. Unless of course, that is, you really did not do any research and that is why you had nothing to report to the readers of your work. And got the report done so fast, while hoping your boiler plate will bail you out all the time.

Your report is your opportunity to "sell" readers on why, what, where, and how. If you feel only page two of the URAR and boiler plate can do that, then I would say you'll be in for lots of stips and future issues with underwriting. And sooner or later, a board complaint, unless you happen to be lucky with dodging bullets.

 

[Willie]

To All,

A serious comment for you.

I read the examples of what people place in their reports regarding this and in my opinion the comments all fell wanting for something meaningful. Appraisers, as a group and especially residential ones, have a really bad habit of only providing a litany of the obvious instead of actually explaining diddly. In fact, they rely on nothing but boiler plate to carry the entire appraisal report. Every board complaint I have ever filed had reports involved that claimed to have used the best comps and all stated the obvious. "I have used the best comps. I have made adjustments. Two comps are over six months old. This comp was painted blue.".... Statements like this do not cut it!

Why don't you attempt a little addendum typing for a change? Such as:

Comparable Search: Due to the factors of complexity, as explained in the Neighborhood and Improvements sections of this report, several comparable searches were performed. As a result a total of 86 active listings, 37 pending sales, and 24 closed sales were considered against the subject's value influencing factors. This list was narrowed to 4 actives, 2 pendings, and 6 closed sales that were field driven for curb viewing. Of this group those used on the 1004 Sales Comparison grid were deemed the best to bracket the needs of the analysis. However, those not so used were still considered. The following is the specifics from the research and analysis.

SALE COMPARISON ONE: This sale was selected for it's site acreage bracketing. Research found the interior .......................................... Kitchen was gutted and remodeled with new ..........................................and ......................just two months prior to the listing.

SALE COMPARISON TWO: This closed sale was selected for it's simlar outbuilding but is noted to be weakened by .................................... Other items considered were it's proximity to.............................. due to ....................

SALE COMPARISON THREE: Chosen for proximity, recent closing date, and similar GLA. Weakened by less similar acreage and lack of outbuildings which resulted in adjustment percentages being outside the general guildelines. However this was unavoidable as the similar GLA was needed for the analysis. Research also found that the market reaction to this sales .................................................... needed to be considered due to ................................................

ACTIVE LISTING FOUR: Used to aid underwriting to reflect current market conditions from the declining market as explained in the Neighborhood section of this report..... The current listing price against the earlier closed contract prices of the closed sales shows a need for the proven time adjustment that.......................................................

SUMMARY OF SALES COMPARISON APPROACH:

Not used on the grid, but considered where MLS #'s xxxxxxx, xxxxxx, xxxxxx, xxxxxxx, and xxxxxxxx. Research showed these had proximity issues and were outside the school district or ..... blah blah blah ... so due to the location differences ........... xxxxxxx was found to not be an arms length sale as the seller ...............................................


****************************************************

In short, stop with the litany of what any fool can see is already on the Sales Grid and get specific regarding your research and exactly why you selected what you selected and why you did not select other properties for analysis. Unless of course, that is, you really did not do any research and that is why you had nothing to report to the readers of your work. And got the report done so fast, while hoping your boiler plate will bail you out all the time.

Your report is your opportunity to "sell" readers on why, what, where, and how. If you feel only page two of the URAR and boiler plate can do that, then I would say you'll be in for lots of stips and future issues with underwriting. And sooner or later, a board complaint, unless you happen to be lucky with dodging bullets.

Webbed, it's for an AMC. They get what they pay for and I can't imagine any of them reading or caring about anything but getting the lowest common denominator of an appraiser to do it for as cheap as possible to maximize their profits, with as little as pain as possible. So long as the fannie comments are in there, to cover their butts, they don't care if they are right or wrong. The box must be checked.

But ride that white horse all you want if you wish. Might not want to do it in a thread about a weak appraisal for an AMC though. They don't care, or they would pay for more thorough work, such as what you might provide. Save the discourse for a litigation or at least a bank ordered appraisal.

 

[DTB]

WF,

Concur with much of your post, however most of the missing details have been beaten out of most appraisers by UWs who do not even read the most limited narrations.

That's why the answer to most stips is RTFR. Why make them dig even deeper?

 

[Vegan702]

Webbed, it's for an AMC. They get what they pay for and I can't imagine any of them reading or caring about anything but getting the lowest common denominator of an appraiser to do it for as cheap as possible to maximize their profits, with as little as pain as possible. So long as the fannie comments are in there, to cover their butts, they don't care if they are right or wrong. The box must be checked.

But ride that white horse all you want if you wish. Might not want to do it in a thread about a weak appraisal for an AMC though. They don't care, or they would pay for better work.

Yeah what he said! Weak appraisal for an AMC.

 

[Willie]

Yeah what he said! Weak appraisal for an AMC.

Vegan, I would take the opportunity to tell them you want more money for extra comments. Your fingers are tired and they need to be paid for additional sentences. Plus your keyboard is doing nothing but depreciating with the extra writing.

That will help your pockets and make an AMC mad all at the same time.:new_smile-l:

 

[Webbed Feet]

Webbed, it's for an AMC. They get what they pay for and I can't imagine any of them reading or caring about anything but getting the lowest common denominator of an appraiser to do it for as cheap as possible to maximize their profits, with as little as pain as possible. So long as the fannie comments are in there, to cover their butts, they don't care if they are right or wrong. The box must be checked.

But ride that white horse all you want if you wish. Might not want to do it in a thread about a weak appraisal for an AMC though. They don't care, or they would pay for more thorough work, such as what you might provide. Save the discourse for a litigation or at least a bank ordered appraisal.

Dear Willie,

... As a business person I completely "understand" your post. But as a licensed appraiser located in a USPAP mandatory State ...... I cannot agree with you at all. Boiler plate does not comply with Standard Two, nor does stooping down to the least common denominator one can find. If the AMC's don't pay enough for the work involved, decline the assignment. Accept the assignment and do the job even if you are doing it at a loss. I could be wrong, but I believe this is what is called "Ethics."

P.S. Perhaps the real issue you mean is those appraisers who are cutting any corner they think they can get away with have short-circuited the "free market" forces for appraisal fees by their failure to abide by the things the rest of us do because were are supposed to. Sort of like American businesses hiring all illegal immigrants is it not? The end justifies the means. It seems to have become a National issue, hasn't it?

 

[Willie]

WF, I know, I know. I'm taking light jabs at Vegan. Vegan is a rookie which explains why he even works for AMC's and this explains his mistakes. I have faith in Vegan and that one day he will make a good and thorough appraiser. I don't know why, but I really believe it. I've mentioned I like him. He lets it all hang out there and if he's in the wrong, he admits it, and moves on, even as he has shown in this thread. One day he'll quit talking about how great it is in Vegas when 10,000 new appraisers show up though. You can still be honest with your mouth shut.

All this thinking he'll be a good appraiser one day, of course, assumes that I can ever get him to understand that I can do eight $300 appraisals and make the same thing that he does doing twelve $200 ones. :new_smile-l:

 

[Wayne Tomlinson]

We sometimes get over the mandatory guidelines by explaining that there is not only no sales within the past 12 months, there also is no other house within One mile.

Then we go from there.

Wayne Tomlinson