Field Review Quote

[D_Man]

I'm curious... how large is adjusted sale price range? You mentioned the value is within "bounds".

 

[Terrel L. Shields]

And in my opinion comps outside of delineated neighborhood boundaries are acceptable as long as they are located within the subject's general market area....

Would you not at least say that the sales are outside the neighborhood?

They adjusted for just about anything.

This is what I do not understand about CRs. I see it on virtually every rural appraisal a CR does on a form. They go adjustment crazy. Buyers are looking at the big picture, not the minutiae of differences. If you have 3 comps, then making more than 2 adjustments is suspect at best. If you have 6 comps, 5 adjustments max you out statistically. You are now creating noise. If nothing else, find better comps.

Last month, our state director said in 2023 the board had 39 complaints, 25 were submitted unsigned by FNMA. And the main culprit? Not wrong facts. Not bad pictures. Not failing to drive by and take original photos. It was adjustments that they deemed outside the ordinary and unexplained. And most of the sanctions were for people resubmitting reports with corrections and not having a copy of both reports nor reporting that they had provided the prior service.

Size matters but a 3 bed 2 bath house of 1,500 SF will not look different from a 1400 or 1600 SF 3 bed 2 bath home. Period. Adjusting for decks. Fireplaces, heat pump over CHA. We cannot always even tell if a $50,000 solar panel array is contributing value, why do we think granite countertops and a hot tub will?

 

[Dublin ohio]

I'm curious... how large is adjusted sale price range? You mentioned the value is within "bounds".

The oa was $483K-$538K, value $505K. Mine was a lot tighter. But $506K was my high adjusted value

 

[Terrel L. Shields]

The client does not care about style or a minor adjustment like a $1000 for a fireplace. I've done hundreds of reviews, they do not care about that stuff because it is minor and does not impact anything.

Then why make such a small adjustment? That implies something that is unlikely to exist. Again buyers are not quants detailing the filling in of a formula of value.

 

[J Grant]

right grant. if there are better missed comps, you put them in. if they confirm the value what need else be said. maybe something corrected or added upon. but i hate messy appraisals even when they got the value right. how much minor mud are you going to get into.

Minor mud ?

Bad comps are bad comps and should not be what supports a value even if that value is deemed "reasonable", which is a subjective opinion. The reviewer is asked if the comp choices are good (perhaps I will look up the verbiage ), so if the answer is no, and the comp choices were bad, then how could the value be agreed with?

A value opinion is not ONLY a numerical dollar amount. A value opinion has to be credibly supported by the data.

If it was only a numerical $ amount, then the review form would not bother asking about teh comp choices and adjustments etc. It would just ask about the value of $ the amount.

And we do not know if the alternate better comps (confirm the value ) or not until we put them on the grid and adjust them. . right? right.

 

[J Grant]

Then why make such a small adjustment? That implies something that is unlikely to exist. Again buyers are not quants detailing the filling in of a formula of value.

But that is so minor a 1k fireplace adjustment a client could care less about it. I personally do not make it but sine ti is so minor it does not materially affect teh value or credibility in the report in any sense that mattes.

if the reviewer wants to make a deal bout a 1k fireplace adjustment, fine but then that same reviewer lets 6 bad comp choices stand ? BAD

 

[ucbruin]

Then why make such a small adjustment? That implies something that is unlikely to exist. Again buyers are not quants detailing the filling in of a formula of value.

You make the case for getting rid of human produced appraisals....

And why some borrowers think appraisals are useless....

 

[J Grant]

The oa was $483K-$538K, value $505K. Mine was a lot tighter. But $506K was my high adjusted value

How did you get "your" value?

Did you use the same 6 bad comps from out of the neighborhood that the OA used, or did you use better, more similar comps from within the neighborhood?

Thta is a huge adjusted value range from 483-538 k but the point is what comps were used to develop it, and you said they used 6 out of neighborhood comps. WEre there better comps from within the naiegohood available or not?

 

[Dublin ohio]

I'm sorry, but, this sounds like a problematic (IMO, without knowing more than you posted ) review. The client does not care about style or a minor adjustment like a $1000 for a fireplace. I've done hundreds of reviews, they do not care about that stuff because it is minor and does not impact anything.)

The 2000 field review does not ask if the reviewer finds the value reasonable; it asks whether the reviewer agrees or disagrees with the review. If the reviewer finds 6 out of 7 comp choices bad, I don't understand how they can agree with the value.

Maybe you should look at the 2000 before you get froggy again. It asks a yes or no question about each section of the 1004and also asks for commentary whether or not you answer yes or no. It also asks if the value is ACCURATE.

I do not understand this- you claim 6 of the 7 sales were outside the neighborhood - , if there were similar sales inside the neighborhood that should have been used, then why didn't you put them on a grid and see what the value would be ? Were there similar comps in the neighborhood, or not ?

Only because the oa had an arbitrary neighborhood boundary that made no sense. No reason to exclude the area where their comps were located.

Reviews can get reviewed and sometimes are

Not the least bit concerned. They may question some of my "opinions". But hard to argue outright factual mistakes. Like wrong zoning or flood zone. I suppose you would have said a 20 cents per sf adjustment for lot size is AOK

 

[J Grant]

You make the case for getting rid of human produced appraisals....

And why some borrowers think appraisals are useless....

He is focused on a petty thing, and THAT is what is making the case for appraisals eliminated.
WTF cares about a 1k fireplace adjustment - I don't personally make it and it is kind of outdated to do it, but if an appraiser does it and says it is due to appeal so what - it didn;t harm anything or change a value or affect anything else --

What really matters is if they used good similar comps or not and if their major adjustments were well supported or not. (or if a major error occurred or a misleading statement was made )