• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

How Comp Adjustments May Be Distorting Appraisals - Corelogic

Status
Not open for further replies.

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
[URL]http://www.mortgagenewsdaily.com/05302017_appraisals.asp
A prevalence of higher-priced comps could lead to higher-than-purchase-price appraisal conclusions, but value adjustments to make the comp similar to the subject could, and in fact is supposed to, negate this effect. Adjustments that are inadequate to inconsistent, Mayer says, could partly explain why appraisal valuations tend to come in higher than the subject's contract price.[/URL]
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
who knows what their point is, I don't think they know.
 

djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio
In a perfect world there would be no adjustments.

90% clip is pretty good. Wonder if that was the number hitter rate in the pre-bust era. The Cavs.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
perhaps they do...their point is appraisals are over valuing properties? What do you think their point is?

Of course they never look to their own and similar model AMC engagement practices around appraisals as a cause...from hiring the cheapest to demanding fast turn times to inane "scorecards" that focus on issues that are not about quality to the ROV acting as an inducement to make value , .

There are of course times when the opinion of market value credibly is above SC price..are are finding what they think is a high percentage of that?

If these companies can design a study of data/appraisals to suit an agenda and publish conclusions from it that support their agenda, that is a problem in and of itself.
 
Last edited:
Joined
Jun 2, 2007
Professional Status
Certified General Appraiser
State
Florida
perhaps they do...their point is appraisals are over valuing properties? What do you think their point is?

Of course they never look to their own and similar model AMC engagement practices ....
Corelogic Realquest Experian is Big Data, not an AMC. Their agenda is to sell AVM and intelligent data services. To their bonus-compensated suits, appraisers in the field are the main valuation service competitors and we'll soon be as obsolete as cowboys were in the not-so-wild west. They tell themselves that valuation issues can all somehow be put into equasions by the back-room wonks, and the "art" of it is NOT part of their product mix because it can't be modeled, packaged and sold like self-service econometric services are.

They are like the Wall Street salespeople who told me in the mid-1990s they could just "price-out" the risk when it came to selling CMBS derivatives rather than making them more transparent with real-time boots-on-the-ground valuation and performance monitoring.

They are SALESPEOPLE with a product in search of a market, and one of their markets already has US. They must invalidate us for their valuation model services to survive.

Does that answer your question about what I believe their point is?
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
It does, and I agree with your take on it...CoreLogic also runs an AMC division ( I know because I do a few orders for them every year.)

Even though Core Logic has an AMC division, it is only a small part of their vast empire of owning data and providing alternate valuation products.
 

Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
Mayer says, could partly explain why appraisal valuations tend to come in higher than the subject's contract price.[/COLOR][/URL]
A dollar gets you ten they have a program that monitors vendors and will unceremoniously remove anyone from their panel who doesn't come in at or higher than the contract price "&@%" of the time. I wonder what that magic number is?
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
These companies are too smart to remove vendor from a panel for that, since they they have to give vendor written notice they are being removed and it creates a traceable record.

A company can keep an appraiser name active on panel and simply stop giving them work if they come in ""low (or give them a token two orders a year)

To be fair I have not experienced that with Core Logic, I have done a few "under value" and the work kept coming. I end up doing only a few a year for them due to low fees for regular work... I mainly do some complex ones for them. However have experienced work suddenly drying up after not coming in at high enough value with two national level clients..one an AMC, the other a direct lender. A number of appraisers on this board have posted this has happened to them.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks