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

[Deleted member 152047]

In determining USPAP compliance, is the appraiser required to "show their work" in the report for a lack of a market conditions adjustment? Especially if their conclusion is that "there aren't many data points, so therefore the market must be stable and an adjustment isn't required"

I didn't think the appraisal report lacked credibility because it didn't hit a certain value expectation. I thought the report lacked credibility because I never saw any support for a 0% market conditions adjustment, despite providing data which I believe supports a non-zero market conditions adjustment is warranted. If the data reconciliation happened off-sheet and the appraiser provided support for the 0%, then great! If the appraiser had done the work (which for all I know they did), it'd be as simple as sending an email. But since all I received was silence, I am suspicious as to whether the appraiser did any reconciliation at all and am left wondering whether that constitutes a USPAP violation.

The inverse of this is how does an appraiser prove that a 10-15% monthly upward market condition adjustment is warranted? Sometimes we simply don't have enough data to prove something even if it is occurring in the market. Appraisal values lag the market during upswings and downswings, it is the nature of the beast.

Glad to hear you were able to purchase the home and get the loan. If things continue like they are now, maybe you can pull equity out by the end of 2021.

BTW, your posts are by far the most well thought out that I have seen from a non-appraiser, well done!

 

[RCA]

I know that people often just want to get even but, consider the practicalities. In most cases, the appraisal has NO effect on the value of the property. It's for the Lender to help them decide if the collateral for the loan is adequate to secure the money you are trying to borrow from them. No one outside the parties to the transactions, is likely to see the appraisal report... nor would they care. If you were able to get financing and buy the property (or conversely if the Buyer was and you were able to sell)... the game is over. The appraisal has fulfilled its purpose.

Well now. I don't think that is quite true. A lot of buyers don't have the cash for a large down payment are and absolutely depending on the loan. Their agreed upon purchase price is usually contingent on the home appraising for the required value. And, everyone knows that. And so appraisers can put a damper on things. - And everyone knows that. So, appraisers can exert control on the market. So, the push to get appraisers to over appraise "under-appraised" neighborhoods to help minorities.

Having said that, here in California right now, we have a lot of people coming in with lots of cash to make 30-40% down payments, so the appraiser is often not that important. And in these areas, prices can shoot up dramatically in a short period of time, without any help from appraisers.

California has always been the story since forever: It has been overpriced for 50 years and still keeps getting more expensive.

Righjt now, in many areas, it's crazy. A combination of people moving out of the cities to the urban areas, continued job growth and other factors. Prices going up 3%/month.