Do you put the Pending Date on the grid?

[Blue1]

Yea, bad example. In some of the area's I appraise, a time adjustment is warranted to all sales closing escrow greater than 30 days, but not always.

Here's one I did where I used the concessions line for time adjustment and got a condition why I DIDN'T use a time adjustment...but I DID, they just didn't know where to look.

View attachment 15401

It seems clear that you are making a time adjustment to me. However, it is not clear what the amount represents...

 

[Mike Garrett RAA]

Really wasn't clear to me and does not look like what I have seen on other appraisals or what I would do. Doesn't mean it's wrong, just not clear.

 

[Mike Garrett RAA]

Jim...you might consider putting the DOM: up near the top of the grid. I do something like this MLS #553423 DOM: 43.

 

[Mztk1]

I like that Mike, but I put the MLS number and the book and page number on the one line and then the agent I spoke with and her number on the other. The only reason I put it at the basement line on the grid is because, otherwise, it is always a blank line. It wouldn't make sense where you are, you have basement. But where I am, since the line is 99.999% open, it makes some sense, even if the person has to look for it.

I'd have to agree with you on the other report. I would have had a hard time figuring it out if it wasn't explained up front.

 

[Mike Garrett RAA]

But....underwriting isn't always IN YOUR MARKET where there are no basements. I think they are used to seeing that in one of the first few lines. I just say..."verified with the broker" and no phone number. Sometimes we try so hard to include everything we cloud the issue. I know some appraisers who are now including the MLS sheets as attachments...talk about opening up a big can of worms.

Have you ever looked at Henry Harrison's Illustrated guide to the 1004?

 

[EVAUSA]

It seems clear that you are making a time adjustment to me. However, it is not clear what the amount represents...

Time adjustments were applied to sales entering escrow greater than 60 days of the effective date at a rate of-2% per month, rounded to the 10K.

Eff. Date: 06/20/08.

My post with the 2006 ED was a TYPO.

View attachment 15413

 

[Blue1]

Time adjustments were applied to sales entering escrow greater than 60 days of the effective date at a rate of-2% per month, rounded to the 10K.

Eff. Date: 06/20/08.

My post with the 2006 ED was a TYPO.

View attachment 15413

I read that on your PDF...What does it mean? Sorry still confused...

 

[EVAUSA]

I read that on your PDF...What does it mean? Sorry still confused...

It means that values for homes comparable to the subject are declining at ar ate of 2% per month and that a time adjustment were applied to sales entering escrow greater than 60 days.

Sale #1 entered escrow within 60 days, no adjustment.

Sale #2 entered 02/06/08, or 4.5 months ago. $763K x 2% x 4.5 = 70K rounded.

Sale #3 entered 12/21/07, 6 months ago. $899K x 2% x 6 = $110K rounded.

If this is not the standard technique in applying time adjustments, please advise.

 

[Blue1]

It means that values for homes comparable to the subject are declining at ar ate of 2% per month and that a time adjustment were applied to sales entering escrow greater than 60 days.

Sale #1 entered escrow within 60 days, no adjustment.

Sale #2 entered 02/06/08, or 4.5 months ago. $763K x 2% x 4.5 = 70K rounded.

Sale #3 entered 12/21/07, 6 months ago. $899K x 2% x 6 = $110K rounded.

If this is not the standard technique in applying time adjustments, please advise.

I honestly haven't seen that technique before but then, I'm not in your Market. Here a quarterly analysis can reveal historical trends up to the effective date of the report. Sale prices tend to fluctuate and not conform to a straight-line rate such as 2% a month.

 

[Mztk1]

But....underwriting isn't always IN YOUR MARKET where there are no basements. I think they are used to seeing that in one of the first few lines. I just say..."verified with the broker" and no phone number. Sometimes we try so hard to include everything we cloud the issue. I know some appraisers who are now including the MLS sheets as attachments...talk about opening up a big can of worms.

Have you ever looked at Henry Harrison's Illustrated guide to the 1004?

I have. I like Henry. I don't live by what he says, but he has been our guru for a long time now.

In Jersey I put DOM at the top of the grid too, because I didn't have the convenience of an open line. In my 10 years of appraising Florida I have only had one person ask me to include DOM on the grid because they didn't see it on there. I pointed it out and they said "Oh, how'd I miss that?"

The reason I put the agents' number on the form is not for the sake of the reviewer or the lender, nor is it for overkill. It is for convenience. I don't always get an agent the first time and it is easier for me to look at the report for their number than to leaf through the file looking for the MLS sheet, or to pull the MLS back up on the computer. Frankly, it is simply the most efficient method I've found.

Including MLS sheets is crazy if you ask me. I had a client that wanted them with every report. I dropped them real fast.