Considering filing complaint for lack of market conditions adjustment on stale comps

[Zoe]

I do like the culture there in Hawaii. I could handle the culture.

 

[Zoe]

ROV with his or her data is best option.

Point blank.

 

[NC Appraising]

Market value? Market price? Auction value (is there a definition? If not, there should be one)

Are appraisers making the market or reporting it?

There is a reason why Fannie Mae removed the 1004MC. It was worthless. It was not that the numbers were inconclusive, it was just a terrible form.

PS, just because you use closed sales within the past 90 day's does not make the market stable.


THE APPRAISER IS WRONG!!! Just saying that the data in the 1004MC is blah, blah blah does not cut it.

These are the instructions on the top of the 1004MC:


Instructions: The appraiser must use the information required on this form as the basis for his/her conclusions, and must provide support for those conclusions, regarding housing trends and overall market conditions as reported in the Neighborhood section of the appraisal report form. The appraiser must fill in all the information to the extent it is available and reliable and must provide analysis as indicated below. If any required data is unavailable or is considered unreliable, the appraiser must provide an explanation. It is recognized that not all data sources will be able to provide data for the shaded areas below; if it is available, however, the appraiser must include the data in the analysis. If data sources provide the required information as an average instead of the median, the appraiser should report the available figure and identify it as an average. Sales and listings must be properties that compete with the subject property, determined by applying the criteria that would be used by a prospective buyer of the subject property. The appraiser must explain any anomalies in the data, such as seasonal markets, new construction, foreclosures, etc.

4. What should the appraiser do if there is not enough data to present a meaningful analysis? In those situations, the appraiser must complete the form with the information he or she has for the defined neighborhood/area—the lack of data may speak to what is occurring in that area. Additional analysis can be addressed in the summary/conclusion section of the form on data in nearby areas for competitive properties. In any event, the appraiser must provide support for his or her conclusions regarding housing trends as noted in the Neighborhood section of the appraisal report.
https://www.appraisalinstitute.org/assets/1/7/MarketConditionsAddendum.pdf

 

[CGinMN]

I would give OP more benefit of the doubt if they weren't trying to convince us that their sole motivation was consumer protection. Basically I think they came here because they have a hard time hearing "no" and to justify their vendetta. They want us to believe they're some kind of Robin Hood, but I'm more convinced they're Sollozzo.

@George Hatch you may be right that from a USPAP or state regulatory perspective this deserves further hearing and the appraiser needs to clean up their act. However, setting the reasonableness of this argument aside... In addition to the ethical dilemma, there is a moral one. As OP pointed out, even an illegitimate complaint would be a real pain for the appraisers in question. I for one maintain the threshold for involving outside regulators requires more than disputing a single adjustment. Regulators should not be Tier 2 review boards. By all means if the appraisal is intentionally misleading, send it to the state. If you disagree with an adjustment, or feel the appraiser didn't appropriately analyze the market, it stops at an ROV.

The irony is that there are limited government types who believe that the free market (appraiser, UW, reviewer, ROV process) can't possibly sort whether a single adjustment (or lack thereof) is credible; meanwhile the goo-goo government guy is arguing that regulators are power hungry bureaucrats who cannot be trusted to level a fair judgment.

 

[NC Appraising]

What is the market value for the subject property? Sold last year for $445k. Current owners put in $50k in upgrades. List price $503k. Had +-20 offers. It is under contract for one of the three highest offers. I have absolutely no comparable sales to support any of the top 10 offering prices. They have back up offers, so the listing agent could care less if I come in below the contract price. The buyers agent is scared as one left comps, rate of appreciation and other BS at the home. Even the comps that the buyers agent left does not even support the contract price.


Just remember..........the subject will become a MARKET SALE AND A COMPARABLE WHEN IT CLOSES!!! 6 other buyers are waiting in line to buy it for $550k?

Here are all of the offers, as I requested them from the Listing Agent: Click to enlarge.

 

[Zoe]

Nothing prohibits the appraiser from changing their opinion of value with new and additional information on an ROV. Remember the definition of value. Please read it OP. I'll post fannie mae defintion.

Here we go:

B4-1.1-01, Definition of Market Value (04/15/2014)

selling-guide.fanniemae.com

 

[Zoe]

I am curious. What type financing are you doing? How much down payment? I am curious?

 

[Elliott]

Glenn said, Fannie Mae does not tell appraisers what adjustments are to be.

When was the last time on a 1004 you made an adjustment for a comparable sale where the seller paid 3% of the buyer's closing cost?

 

[glenn walker]

Glenn said, Fannie Mae does not tell appraisers what adjustments are to be.

When was the last time on a 1004 you made an adjustment for a comparable sale where the seller paid 3% of the buyer's closing cost?

I think the transaction has been finalized He/She came up with the difference in cash so it's a mute issue : )

 

[Zoe]

Intended use and user is critical to the op's problem. It is not the appraiser. It could be appraiser but they will work it out if buyer follows protocol.

I still want to know down payment and type financing and I want to visit.