Fair Condition vs Average Condition Rating

[LA Woman]

I can appreciate post 11 after reading this. Sister LA, there are two uses of these types of nomenclature. The first use is in a factual description of the subject and comparable properties. The second use is in the sales comparison approach as relative terminologies for purposes of showing "steps" of physical condition without implying negative connotations simply because one property might have a remodeled kitchen and another not.

So here is where we trip up on what are really unacceptable assignment conditions that the residential side caved in to taking. Years ago we had check boxes on the forms for Good, Avg, Fair, and Poor for all sorts of things like location, public transportation, etc. What the so-called "investors" pulled was jumping the loan points on the "backside" of the commissions paid if any appraiser dared to use anything "Fair" or lower. So, the extreme pressure to NEVER label anything "Fair" fired up. Appraisers buckled to the pressure in masses. Hence, the creation of the lovely "Average Minus" or "Below Average" relative terminology with hundreds of so-called "Mentors" training their suckers...errr I mean appraisal trainees, to never use the word "Fair" in a report. Fannie has always lent on properties rated or described as "Fair" by appraisers, it was those back end commission points at work that firked that up.

Clients demanding that you cannot use "superior," "Inferior," or "Equal" across your sales comparison grid are camels with their heads in your tent
demanding something they have no right to demand. Especially, if they are AMCs. Have you just told them to stick it yet at all?

Clearly, all page one of the URAR "Condition" indications should be factual, not relative. I fully support Fannie forcing relative terminology that kills the "labeling" bias that has been going on regarding the sales comparison approach. By the way, I went back to calling a "Fair" spade a spade YEARS ago after getting away from the weak kneed shop owners where some of my earliest training came from. But it did give me opportunities for quite a few lovely phone battles! Ahhh... those were the days!

I remember the old form. It was better in many ways. And yes the camel is in my tent, in fact I've got a whole friggin' herd in here. But its that or be out on the street with no job.

I live in the real world which is if you make enough waves in this industry you will end up without any work. Trust me, I've made my waves, nobody listened, nobody cared and I lost work and barely survivied.

I now choose my battles very carefully and try to not let my ego get in the way. This job is not brain surgery, although many try to make you think so.

 

[Webbed Feet]

"Fair Condition" describes a structure with curable obsolesence. "Poor Condition" describes a structure with incurable obsolesence.

Each rating can change without lifting a finger because it is dependent on the market.

Interesting view and concept. Not bad.

 

[Webbed Feet]

I remember the old form. It was better in many ways. And yes the camel is in my tent, in fact I've got a whole friggin' herd in here. But its that or be out on the street with no job.

I live in the real world which is if you make enough waves in this industry you will end up without any work. Trust me, I've made my waves, nobody listened, nobody cared and I lost work and barely survivied.

I now choose my battles very carefully and try to not let my ego get in the way. This job is not brain surgery, although many try to make you think so.

Unfortunately, and I do post this with understanding of the position you were/are in, regardless your post and view represents what became the death knell of residential appraising regarding control of our own businesses or even control over our own ethics. It continues to be so. But the problem is no one appraiser, or small percentage of appraisers, should be forced into being the only ones of us "making waves." The trade itself should be making tsunami level waves but is so weak simply splashing a little in a puddle swamps the trade boat. For now, your post is the epitaph for this trade.