Here's another interesting condition from that Big Dog Bank

[rbrienza]

CAN

USPAP States ...
2-2b(viii) summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income approach must be explained;

Comment: A Summary Appraisal Report must include sufficient information to indicate that the appraiser complied with the requirements of STANDARD 1. The amount of detail required will vary with the significance of the information to the appraisal. The appraiser must provide sufficient information to enable the client and intended users to understand the rationale for the opinions and conclusions, including reconciliation of the data and approaches, in accordance with Standards Rule 1-6.

When reporting an opinion of market value, a summary of the results of analyzing the subject sales, options, and listings in accordance with Standards Rule 1-5 is required. If such information is unobtainable, a statement on the efforts undertaken by the appraiser to obtain the information is required. If such information is irrelevant, a statement acknowledging the existence of the information and citing its lack of relevance is required

Therefore , the bank and Kevco is correct. If your not explaining then your not producing a credible report.

 

[Non Sequitur]

Therefore , the bank and Kevco is correct. If your not explaining then your not producing a credible report.

No. Summarize does not mean describe every adjustment, and how they were calculated, in a report.

 

[kevco]

No. Summarize does not mean describe every adjustment, and how they were calculated, in a report.

Yes, If the lender or the AMC requests that you do it, you will do it or not get work from them in the future. Period.

 

[Scott R Marshall]

Yes, If the lender or the AMC requests that you do it, you will do it or not get work from them in the future. Period.

No and yes. It is not required to explain every adjustment within a summary report. Yes in that if your client requires it, and you agree to those terms, then you must do it.

Charge appropriately. Which will also probably result in you not getting work from said bank in the future. In which case, I am fine with that. I'll let the lemmings kill themselves typing an additional few hours for the same fee I get for clients that actually trust and respect my work.

 

[Riick]

Yes, If the lender or the AMC requests that you do it,
you will do it or not get work from them in the future.
Period.

As-If anyone with a grain of sense would care about losing a "client" like that.
With friends like that, you don't need enemies, and with clients like that,
what you need is either the ability to say NO,
or the clear-cut desire to commit economic suicide.

Let me see here, today
typical 3 comps & 2 listings?,
or is it 4 comps and 2 listings?,
times 24 potential adjustments each
is how many individual statements?

 

[rbrienza]

Read A/O-11 lines 88-93. and 140-146

 

[CANative]

If the appraiser just plops sales in a grid, makes adjustments and is silent after that then I agree. But I can't imagine appraisers doing that, especially not appraisers on this board.

This AMC sounds like they want the information described instead of summarized.

CAN

USPAP States ...
2-2b(viii) summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income approach must be explained;

Comment: A Summary Appraisal Report must include sufficient information to indicate that the appraiser complied with the requirements of STANDARD 1. The amount of detail required will vary with the significance of the information to the appraisal. The appraiser must provide sufficient information to enable the client and intended users to understand the rationale for the opinions and conclusions, including reconciliation of the data and approaches, in accordance with Standards Rule 1-6.

When reporting an opinion of market value, a summary of the results of analyzing the subject sales, options, and listings in accordance with Standards Rule 1-5 is required. If such information is unobtainable, a statement on the efforts undertaken by the appraiser to obtain the information is required. If such information is irrelevant, a statement acknowledging the existence of the information and citing its lack of relevance is required

Therefore , the bank and Kevco is correct. If your not explaining then your not producing a credible report.

 

[Delta85]

If you are not explaining your adjustments and how you got there, you're not doing it right.

I've never seen a report that detailed every adjustment or lack of adjustment in such detail as to literally show the math and the mechanics behind the number. My reports do not go that far, my mentors reports did not, and none of the reports I've seen from appraisers with 30+ years in the business either.

If this is what the client wants it should be stated prior to accepting the assignment and appropriately billed for.

 

[rbrienza]

Canative...

I review several reports a week. I see many appraisers think that because the number in the grid is the adjustment that is support, it is NOT Support. I have had a few state " it is self-explanatory if it is in the grid." (they are no longer working for that client). I get that some adjustments appraiser make you have use your own experience and judgement .. then state that. If you don't have the data say that I impute this adjustment for $zzz because of this and that.

I had an appraiser value a 3.5 million house and make a $1,500 bathroom (also fireplace) adjustment then the next day make the same adjustment on a $150,000 house. (he could be right) I contend that most homeowners that are in the higher end houses don't add much, if any, value on fireplaces or 1/2 baths. ( i grew up in one and have built many). You still have to explain your rationale for your thought process. Otherwise, it questions the crediblity of the report.

- Ray

 

[sputnam]

Assuming you actually have market support for an adjustment, your explanation doesn't have to be complicated. For example, 'Location adjustments were based on differences in the average per square foot sales prices between the subject and comparable subdivisions'. As already stated, if it's a SWAG adjustment, just say that it's based on your professional experience and judgement.