Condition Adjustment in same designation

[SweatinginAZ]

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]

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]

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]

Absolutely. Just explain your rational as thoroughly as possible

 

[SweatinginAZ]

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]

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]

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]

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]

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]

I'd like to see it too. I think Mr Tom i misinformed. Tom, show me.