Comp Added After Effective Date. MLS Photo Ok?

[Deleted member 130081]

The recent scope creep came about for many reasons. It came along after a perfect storm of many bad practices (from all sides of the real estate industry - from sales people, lenders, appraisers, underwriters, etc. - the whole system) and no one industry player's hands are clean. As far as adding listings to the report, they weren't included when the market was increasing in the early 2000s either but at what point would listings have told a different story in 2007?

For me, I'm not buying into the idea that someone is trying to gain volume by adding/providing more comps and data. Clients just don't think that way. They want a product that is well supported and less complicated. That's been my experience anyway, but maybe I have more sophisticated clients. Also, I'm not one of those appraisers who didn't push back. Most of my work was in high end, very complex assignments. I agreed to take them under the condition that I'd apply appropriate appraisal practice and their guideline's be damned. They'll get a good, supportive and well expressed report from me and that meant the report may not meet the their requirements/guidelines; e.g., 25%/15% gross adjustment guideline, the six month sale guideline or the four sales and two listings requirement. I notified the client as such before blindly accepting their terms. I quoted a price 5 to 10 times their base price and I gotta say, they agreed to it 99% of the time after it was clearly explained why. But I guess we're getting off topic here.

Finally, and respectfully, there is no need to assert your points by insulting and mischaracterizing others and the way they do business. Frankly, it diverts the attention away from your points and weakens your argument.

All the points I have made are valid and true. Scope creep is real. Reversing scope creep after the fact is much more difficult than it is to increase it. Higher-end fees obtained by yourself and some others are niche market fees, not mainstream fees. Mainstream fees are not going to increase by virtue of appraisers adding more support without even being asked to. If everyone starts putting as much "support" into appraisals as those who work the niche market, the reasons of quality and service that earned the niche market for yourself and others will diminish and possibly even vanish, as the competition for that level of quality will come down to price and service, just like the mainstream market is now. Most appraisals are not really "better" when more comps are added. True, there is occasion when adding more is the right and only thing to do. However it is also true, when the data is bad in the first place, which is also often the catalyst that drives the need for more "support" in the first place, more bad data does not usually help anything and rather, could be argued only weakens the report as it becomes more messy, complicated and dare I say, misleading.

One of the major problems is our experience and judgement are no longer valued as they ought to be, and the expectations of clients has shifted from "support" to something more like "proof", when the data only gets so good in the first place. What would be more appropriate in these cases of "bad" data, is a narrative reconciliation of the quantity and quality of data, and a reconciliation of the methods and techniques used. This is the task that explains the credibility of the appraisal puts it into context for the reader AND, it is in fact REQUIRED on all written appraisals every time, per the USPAP. If appraisers completed that task on each and every appraisal, maybe the madness to add more comps and "support" each and every tiny little adjustment would (could?) diminish. I am not going to apologize or accept a scolding for saying that either, because it needs to be said. Appraisers are spinning their wheels in the wrong places and it not only hurts all of us, it makes all of us look bad.

We talk about the need for new appraisers to be mentored. How about a mentor for running a business? Doctors all take a class on running a doctor business the last semester of their schooling. Ever see a doctor give away services for free? It makes zero business sense to give away appraisal services for free. Worse, it makes zero business sense to ignore a requirement, then try to make up for that with something mostly useless and not required.

Finally, respectfully and frankly, as far as your feelings getting hurt, or maybe some internal desire/need to scold me, let’s not go over-board here O. What I said to you was quite tame and what I said to the OP wasn’t all that terrible either. I would, and have, apologize to anyone if I thought there was merit to do so. If a person’s ability to mine nuggets from a forum is diminished by the territory well, then I suppose it is. That’s different than the weakening of an argument and rather, lends itself to a person’s ability to navigate communications with others.

My friends dog pees on the carpet when strangers walk in the door. My cats run from a friend of mine who has a loud voice. Maybe they should be scolded - lol.

 

[Digger88]

Are you saying that you have all your comps pre-selected before all of your inspections and never have to go back out and inspect comps? If that is what you are saying then you live in a world most of us would love to live in. It is common that we inspect, go back to office and select comps and then go drive comps a different day.

thats my world bro i never have to go back out. and 7 comps??? what language is "7 comps" lol. such different markets we live in. further, if you have a difference just adjust for it and move on!

 

[Mike Garrett RAA]

Simple answer....You should drive the comp and take a picture. Can you use MLS photos? Depends.

 

[Mr Rex]

Scope creep? Original comp photos for FHA have been required for over 20 years (probable longer, before my time). The OP made the decision to add an additional comp. If that is what they deem is required to properly support their opinion of value,then the rules don't change for "going the extra mile". The claim of "scope creep" disingenuous at best and Skippy 101 BS.