• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Condition Adjustment in same designation

SweatinginAZ

Thread Starter
Freshman Member
Joined
Sep 4, 2019
Professional Status
Certified Residential Appraiser
State
Arizona
I was wondering how everyone is handling condition adjustments within the same Rating? For example, a property in C4 condition that is closer to C3 than C5. Can you do an adjustment if they are in the same rating?
 

chad hampton

Senior Member
Joined
Nov 10, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
I do all the time. Just explain why - "comp #2 is also a C4, but appeared to have newer flooring and new interior paint, therefore a $XXXX adjustment was made.....etc"

I suppose if the adjustment was too large, then they might wonder why it isn't kicked up to a C3.

I have found that if you just use some common sense and explain things even just a little, things go smoothly.
 

Tom D

Senior Member
Gold Supporting Member
Joined
May 22, 2015
Professional Status
Certified Residential Appraiser
State
Pennsylvania
according to fannie mae that is the correct way to do it. if you put it on separate line CU doesn't recognize it. as a matter of fact fannie mae news letter last week discussed how some appraisers were dong it wrong. so that is the line to make any condition adjustment, same thing for quality line adjustment. whether it makes sense, or not, this is how CU reads it.
CU doesn't read your addenda, but that is where you should state what the difference is for each comp adjustment. just in case the reviewer, under writer, or state board may want to read that, and i only said may. if your CU score is good, with no red flags, nobody read the report.
 

EddieB

Senior Member
Joined
Feb 17, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
Absolutely. Just explain your rational as thoroughly as possible
 

SweatinginAZ

Thread Starter
Freshman Member
Joined
Sep 4, 2019
Professional Status
Certified Residential Appraiser
State
Arizona
Ok thank you. I was trained to do the "Upgrades" adjustment at the bottom, but that just didn't seem right to me. Then I saw that same fannie mae article, so I'm switching the way I do things.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Got a C6 on my plate, major mold issues in the basement. The best comp is a C6 with roof leaks but not nearly as bad as the subject (25k or more difference on a under 50k house in a rural area. It is what it is, and a few lines on commentary explain it all. POS vs less of a POS, but both C6. Applies to all C ratings IMHO.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
according to fannie mae that is the correct way to do it. if you put it on separate line CU doesn't recognize it. as a matter of fact fannie mae news letter last week discussed how some appraisers were dong it wrong. so that is the line to make any condition adjustment, same thing for quality line adjustment. whether it makes sense, or not, this is how CU reads it.
CU doesn't read your addenda, but that is where you should state what the difference is for each comp adjustment. just in case the reviewer, under writer, or state board may want to read that, and i only said may. if your CU score is good, with no red flags, nobody read the report.
Can you paste link to the fannie mae letter stating the "correct" way to do it? Must have missed it ...
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Note: Properties can have the same rating or description and still require an adjustment. It should be noted that this does not only apply to Condition and Quality ratings and can apply to other ratings or descriptions as well. For example, all water views may not be equal. In this instance, an adjustment should be made and explained in the Additional Comments section of the form or in an addendum.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Note: Properties can have the same rating or description and still require an adjustment. It should be noted that this does not only apply to Condition and Quality ratings and can apply to other ratings or descriptions as well. For example, all water views may not be equal. In this instance, an adjustment should be made and explained in the Additional Comments section of the form or in an addendum.
Thanks, am familiar with it, though it does not indicate what Tom D said:
Tom D-according to fannie mae that is the correct way to do it. if you put it on separate line CU doesn't recognize it. as a matter of fact fannie mae news letter last week discussed how some appraisers were dong it wrong. ?? Where is that...

Since some appraisers make the adjustment instead of on the C rating line, might put it line item under upgrades or other.

Imo, fannie needs to add a plus or minus option to the ratings
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
I'd like to see it too. I think Mr Tom i misinformed. Tom, show me.
 
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks