Is Driving By Comps Still Necessary?

[Francois K. Gregoire]

Originally posted by jeff samolinski@Feb 19 2005, 11:16 AM
OOps my mistake

I think george was referring to the certification statement and I mis-represented his comments- my mistake.

So we would have to just modify our canned certification statement and it would be ok not to drive-by every comp in every circumstance as long as we did not represent that we did?

You'll need to ask Fannie and Freddie. It's their certifcation. To my knowledge, neither allows modification to the form.

 

[Pamela Crowley (Florida)]

Fannie Mae states they won't accept changes to their Certifications and those are covered under USPAP - Supplemental Standards.

 

[Stone]

Originally posted by jeff samolinski@Feb 19 2005, 10:16 AM
So we would have to just modify our canned certification statement and it would be ok not to drive-by every comp in every circumstance as long as we did not represent that we did?

As far as USPAP goes, but most users prefer you perform an exterior inspection of your comps. That is why it is included in the certification.

Edit - Pam and Frank beat me to it...

 

[jeff samolinski]

So I guess I should direct my comments to Freddie and Fannie then.

Still interesting to me to see the points of view from everyone regarding the necessity of it and whether it is outdated.

Regardless of who requires it I still think it needs to be looked at in light of the continual emphasis on the need for speed while at the same time the emphasis on increasing our investigative skills.

If you know the area where the comps are things like the location of railroad tracks, commercial properties next door, etc.. are already known to exist as well as the fact that if the comp has been renovated or burned down after the date of its last sale it does not matter-it was still a sale and in that instance the MLS data with all its flaws is the best source of info available.

 

[Big ole Boy]

On the surface - it would seem that seeing the comps may not matter all that much anymore in very homogenous areas.

Method of estimation evolves and so does the superficiality of establishing value.

Superficiality of values seems to be widely excepted.

So taking pictures of comps in some neighborhoods - heavily traveled and well known may be quite OK.

The see saw of every additional dollar saved on an appraisal is worth it to most

banks these days.

 

[jeff samolinski]

I also have to point out that in USPAP's defense, the fact that it does not specifically address the need or requirement for driving by the comps could be an example of a good thing. It would not be good for such a document to attempt to address each and every circumstance encountered as part of the appraisal process. End result would be a document that is too inflexable. Supplemental standards covers it nicely.

See I can say some nice things about USPAP!

 

[Lobo Fan]

I still try and drive by every comp whenever I can. It gives me the chance to see if there are features not often mentioned in our MLS, like fences, roof condition, busy streets, grafitti, etc.

In Albuquerque, in certain troublesome neighborhoods, they have taken to closing off streets and putting in barriers so traffic can only go a certain direction. I consider these to be a giant pain in the backside and I make a location adjustment, or try to find comps with that same barriers.

These are mostly found in the Trumbull area (aka the war zone), where I almost got mugged for my camera while taking a street shot.

Oops I am digressing badly. Driving the comps gives me a better feel for which ones are more like my subject and which ones are realtor hype. Plus I miss the thrill of having bikers chasing me down the street. LOL

 

[Linda M Lynch]

To be totally honest, there are some neighborhoods that I appraise property in every single month of the year. I know those particular neighborhoods so well that I could walk them in my sleep. Heck, I've appraised most of the houses in those neighborhoods at least once. So do I feel the need to drive by comps in those neighborhoods? No. Sorry if that offends some people's belief system but, darn it, common sense HAS to come into play every once in awhile.

 

[jay trotta]

Mike G. ; makes a good point on the comps. - they had to be there on site at the "time of sale" OR someone is at fault for "misleading" information.

Our MLS is fine and most of the Realtors are OK, slackers are everywhere (right Ducky :rofl: ) -

Don't really know how you get around FNMA requirements that most Lenders use, so driving by everything is warranted. We all do so many appraisals, why would you want to skip out on that anyway, area's & houses are continual "works in progress".


Just like the "road of life" it's always under construction B)



h34r:

 

[Billie Hiser]

In my area, the Realtors lie through their teeth, (or tooth as it may be). Besides the fact that if they do put in pictures, half of them are misleading...yeah yeah it has a lake view, from the roof on a step ladder stretching on your tippy toes!