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How Do I Respond To A Reviewer

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John Niumata

Freshman Member
Joined
Aug 27, 2003
It is my first time responding to a reviewer (have been working for 1.5 years) and of the three extra requirements the only one I am worried about is extra comps.

If I am asked to provide extra comps that support value and I do not have them what should I do?

Do I say there are none that support value or do I add extra comps that may lower the initial value?
 

Rennis Wilkerson

Freshman Member
Joined
Sep 4, 2003
Professional Status
Licensed Appraiser
State
California
I have been an staff appraiser for a year and I have conditioned by some tough reviewers a few times. The case of them requesting an extra comp, If there are no other comparable properties in the immediate market area then it is acceptable to extend your search to a competing market area. The best way to find a competing area (if you aren't already aware of one) is to call a local realtor and ask them if they had a buyer interested in your subjects's area and no suitable properties are available, where would he or she take them.
Doing this and backing it up with a strong comment in the addendum (REALTORS name should be included) should be sufficient.
I hope this helps and GOOD LUCK! :D
 

Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
Personally I have a hard time seeing why a review appraiser has any business asking for more comps unless they are actually an underwriter working for your client. A review is just that... a review of a completed report. A client typically hires a reviewer to do a review, not to have the reviewer ask the appraiser to revise or add to an existing report. Is the reviewer trying to get you to do their work in hopes there are other comps out there and they don't want to look for them?
Please keep us informed.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
If your "reviewer" is an underwriter, send them a note that if you had better comps, you would have used them the first time (politely, of course). Then explain that to go well outside of the market to obtain a comparable just to satisfy underwriting may well cause the report to be considered a misrepresentation of the subject and a violation of USPAP.

If your "reviewer" is a review appraiser, you shouldn't have to be responding to him directly, only to the underwriting department.

Roger
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Originally posted by John Niumata@Sep 4 2003, 02:41 PM
It is my first time responding to a reviewer (have been working for 1.5 years) and of the three extra requirements the only one I am worried about is extra comps.

If I am asked to provide extra comps that support value and I do not have them what should I do?

Do I say there are none that support value or do I add extra comps that may lower the initial value?
The reviewer will not be asking you for additional comps. An Underwriter very well might though. As long as the comps you did use are the newest, nearest, most similar sales available, you'll be fine. If there are comps that are more representative of the subject property that were not used in your report and would show a lower value than you did because you used comps that were higher priced, not as similar to the subject, further away or in superior neighborhoods (aka "cherry picking") .... you're already heading for trouble.

If your comps are the best available, stand up and defend yourself with the facts and leave your emotions out of it. You'll be fine.

Let us know what happens and good luck!
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Originally posted by John Niumata@Sep 4 2003, 11:41 AM
If I am asked to provide extra comps that support value and I do not have them what should I do?

Do I say there are none that support value or do I add extra comps that may lower the initial value?

John,
You need to clarify whether or not there are comps in the subject neighborhood that were not used because they didn't support the value needed, or if there are no others in the neighborhood that are physically similar to the subject.
Please be more specific.
 

John Niumata

Freshman Member
Joined
Aug 27, 2003
Ok I will be more specific

I used 2 comps in the same development and 1 outside but close , I used the 3rd outside the development as I often get asked to do so.

I of the comps inside the development is the same model, the other is very similar.

there are comps of the same model that sold for less, and some for much less , there is quite a diverse price range mainly based on view, condition and if it backs to a road.

the actives and pendings of similar size and room count in the same neighborhood support the value.
Contract was slightly below the number i came in at

any more comments now that you have more facts?
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Good explanation John.

there are comps of the same model that sold for less, and some for much less, there is quite a diverse price range mainly based on view, condition and if it backs to a road.

Do the comps you used match or are very similar in view and condition? If the price differences boil down to view and condition, those appear to be very justifiable adjustments.
 

John Niumata

Freshman Member
Joined
Aug 27, 2003
Pamela

yes the comps match in view and condition.

there is one other comp that the reviewer mentioned that I would have used but for some reason (I think becuase I could not confirm condition) I did not use it at the time of compilation.
it is lower in value but same model, same view.

I did not know that a reviewer does not normally ask for comps. I called the lender and asked if the underwriter requires comps. They are going to call me back and let me know.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Sounds like you're just fine! Now don't worry unless something else comes up. If so, let us know and we'll help you answer.
 
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