Is Driving By Comps Still Necessary?

[jeff samolinski]

Just thinking about this but first I have to post all of the usual qualifiers etc.. before everybody starts in responding from their own situations which may be very different from mine.

First of all assume that in most cases that the truly best comparables are in the MLS system and that typically the MLS has photos of the front, back and most times interior photos. Also assume that we are talking an appraisal in an area that you are very familiar with where you have done many appraisals so you the neighborhood.

Now can anyone tell me some good reasons why and what I could possibly learn by driving by the front of the comparables and taking a picture of them that I don't already know.

I am beginning to think that this requirement is a no longer needed remnant from the dinosaur era especially with the information that is so readily available to some of us today.

Bang away!!!!!

 

[Tim Hicks (Texas)]

1. To make sure the picture is not the wrong picture.

2. To make sure the property was not purchased for land value.

3. To make sure the property was correctly described.

4. To get home owners to chase you for miles and miles.

 

[Stone]

A few quick ones:

You can see the commercial property next door that magically isn't in the picture.

You can smell the rendering plant a few blocks away.

You can see the actual make-up of the neighborhood (good, bad or indifferent)

You can see the missing siding that magically isn't in the picture.

You can get a general "feel" for the house's placement in the neighborhood.

There are many more reasons, but those are just the quick ones.

BTW - if your answer is that you know the neighborhood the property is in, and thus you really don't need to drive by to understand the area, you may be right. However, unless you are looking at the particular comp, there could always be something you hadn't noticed regarding that house or block. And, Realtors are not very likely to highlight any of the external issues that might affect the value.

Just a few thoughts

 

[Don Clark]

B) For all the reasons Jeff stated. Has never been a USPAP Violation. May be a client requirement. We can do a desk top appraisal and never leave the office. What is the difference. DISCLOSE, DISCLOSE, DISCLOSE.

 

[Randy Beigh]

Jeff

It is a legitimate question. It shouldn't be, but it is.

I have no doubt that this type of expectation came about from a lack of trust from to client to appraiser. With the photo, they know you drove by the comparable. With the MLS and other digital photos, that is no longer the case. It doesn't mean you drove by the property.

Can you learn anything from doing that, that you didn't already know? Sometimes. What if they built a gas station across the street since the last time you were there? Or, the neighbors house is now a junk yard? Neighborhoods are undergoing constant change, so knowing the overall neighborhood may or may not mean much. You need to see the immediate area.

I have talked with appraisers that do not drive by the comparables. They get the photos from MLS, Zaio, etc. saying they have been doing this for so long, they have driven by the property at one time or another. Doubt that is what the lender is thinking.

Eventually, we should be able to use aerial photos that might be more useful than the front photo. Maybe, then this request will go away.

 

[Otis Key]

1. Not to mention the railroad tracks at the back of the lot.

2. The recently busted meth lab house across the street.

3. The junk cars in the neighbors yard.

4. Tim, you forgot the owners chasing you for miles and miles with a gun.

5. Getting to know the friendly police department.

6. Seeing that half the roof has curled shingles.

Naw - I don't think we should ever follow the rules.

 

[Rudy Canoza]

Agents lie?

If most Realtors® can't even spell or formulate a coherent thought into a grammatically correct sentence, how on earth could you possibly trust their "marketing data" in MLS?

If I do the leg-work I have only myself to blame.

/Anyway, that's my take...

 

[George Hatch]

It depends. Are you using the Fannie Form 439 form for your certification? If so, I would direct your attention to Cert No. 8:

8. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. ....

 

[wyecoyote]

Think everyone answered that question. Yes I use MLS photos more and more for comparables for my own reasons. But I do disclose they are MLS photos. Many different things that are not listed in the MLS that you can find you didn't realize about the property even if you drove by it every day.

Side note I do like the fact that more and more agents are putting in interior MLS photos.

 

[jeff samolinski]

Ok folks not talking about what is currently required- thinking in context of is there really anything additional or necessary to be learned that can't already be obtained by other sources.

You folks have made some good points already about trusting realtor's data and how photos could be the wrong house or taken in such a way to not dislclose problems etc... Shame on you for not trusting your realtor!!! ha ha!!!

Before everybody gets going down the wrong road I am not posting this as some sort of justification for me not driving by the comps because I do-its just time after time I learn so little from it but then again I have to remember the times that it was well worth it because I picked on an important bit of info by being there. Its easier to forget about those times that it was important and remember only the times when it resulted in little or no additional info.

Anyway if nothing else this will serve as a reminder to resist shortcuts of this type because it only takes one bad appraisal to get into trouble.