How are you handling "support your adjustments" revision requests?

[Digger88]

Getting more of these lately where the reviewer wants paired sales or regression support for basically every line item on the grid.

got this exact stip from a new UW at a long term client like this is a manual robo (ask appraiser) comment they make. I sent the following and he closed the file

Sensitivity analysis (a standard, GSE-accepted Sales Comparison Adjustment Method documented in the report) was used (and its definition can be found under MARKET DATA/ADJUSMENT METHODS AT END OF REPORT) because it identifies the adjustments that produce the smallest range of adjusted sales prices. Quality adjustments specifically account for the subject’s all-brick (4 sides) construction versus brick-front/vinyl or all-vinyl. Minor lot-size differences received a $0 adjustment because no market-based evidence exists to support an adjustment for such small variances.

While bracketing is optimal and was utilized wherever possible, it is not a GSE or USPAP requirement for every data field. The report also notes that the appraiser had to go outside one mile to bracket certain aspects of the subject property, and the use of those comps does not render the opinion unreliable. Full adjustment rationale definitions and supporting market data are provided in the ‘MARKET DATA’ section at the end of the report.

Paired-sales analysis was not the primary method used, so no additional paired-sale data is provided (sensitivity analysis was employed instead).

 

[sputnam]

I think they want to see some numbers, somewhere, with blanket comments. But, don't give them the secrete adjustment list.

Some do... but unless they told youwhat they needed before you accepted the assignment, you have no obligation to do that. Of course, if you don't just comply, you will have to deal with a lot of hassle from them and probably lose the Client. At that point, it's a business decision.

We have seen something similar in the past. Anyone remember 'Comps must be within 1 mile'? There never was a USPAP or GSE requirement that your comparables be within one mile of the subject. Yet, many Lender reviewers and/or underwriters tried to tell us there was.

 

[Salty]

I generate fresh adjustments most of the time - unless I am appraising a property in an area where I generated the adjustment within the last 3-months. I typically use matched pairs if I have a minimum of 2 sets and preferably more in my work file. I use grouped data sets frequently as well. Sometimes I use excel for regression only as an additional support tool. I never use those push-button adjustment software apps/tools. I like my adjustments to be as specific as possible for the immediate neighborhood whenever possible. I always include an "adjustment sheet" with my report showing my work and how I derived each significant adjustment. If I am not able to credible derive an adjustment I simply state I considered it on a qualitative basis. I rarely adjust for site size unless it has the ability to be subdivided. I take the time to support my REL with fresh support. I rarely get push back. But - full disclosure this is just a side gig for me these days. I found easier ways to make significantly more money.

All of this takes a TON of time. Its why I am not able to do non cookie cutter AMC work as the fees don't compensate me properly and I have learned to stop researching and quoting because that is time wasted since I rarely get the order because AMC work handcuffs me to the lowest bidders in my market.

 

[sputnam]

I generate fresh adjustments most of the time - unless I am appraising a property in an area where I generated the adjustment within the last 3-months. I typically use matched pairs if I have a minimum of 2 sets and preferably more in my work file. I use grouped data sets frequently as well. Sometimes I use excel for regression only as an additional support tool. I never use those push-button adjustment software apps/tools. I like my adjustments to be as specific as possible for the immediate neighborhood whenever possible. I always include an "adjustment sheet" with my report showing my work and how I derived each significant adjustment. If I am not able to credible derive an adjustment I simply state I considered it on a qualitative basis. I rarely adjust for site size unless it has the ability to be subdivided. I take the time to support my REL with fresh support. I rarely get push back. But - full disclosure this is just a side gig for me these days. I found easier ways to make significantly more money.

All of this takes a TON of time. Its why I am not able to do non cookie cutter AMC work as the fees don't compensate me properly and I have learned to stop researching and quoting because that is time wasted since I rarely get the order because AMC work handcuffs me to the lowest bidders in my market.

Exactly how it is supposed to be done. Different properties are different. Different neighborhoods are different. Even if you're in the same neighborhood and it's a model match dwelling, the market changes. Part of being appraiser is knowing when it's supportable to use the adjustments that you extracted last week. How much detail you include in the appraisal report is a decision based on the requirements of the Intended User and the Intended Use of the appraisal.

Some appraiser only seem to know one or two... maybe three... methods for extracting and supporting adjustments. There are more than thirty recognized and accepted techniques. No need to use them all every time. That decision should be based on the quantity and quality of the market data that's relevant to the assignment.