lender vend stip

[OlgaM]

I got a condition from Lender Vend (Provident). It’s not first time: "One or more comparable used has an adjusted value greater than +/- 20% of the appraised value." is in regards to the comps adjusted value - NOT the gross or net adjustments” Non of my comps over net adjustments (total). Can someone who is working for Lender Vend explain the meaning of “greater that +/- 20% of appraised value”?

Did someone have the same problem? It looks like they add the net and gross to come up with a new (adjustment.)

 

[danny nguyen]

you should read their quality control checklist. Info explained in there.

 

[OlgaM]

I did but there is no explanation how they calculated +/ - 20% of the appraised value.

 

[danny nguyen]

for example if your appraised value is 500k and your adjusted comps came at 601K or 399K than you need to explain for the difference, why comparable varies significantly from the appraised value.

 

[danny nguyen]

Usually when this happen, it’s due to your poor comps selection. The differences can be condition, location, lot size and GLA adjustments. Ask yourself why comps are selling more or less than 100k of your appraised value. You need to find better comps. If lack of comps from the subject's market area explain.. explain.. explain.

 

[OlgaM]

You mean that the dollar amount adjustment + /- divided on the sale price of comps have not exceed 20%. For instance: the comp value is 230,000 and + / - $20,000 (total adjustment) , so $20,000 divided on $230,000 = 8.%. I checked all my comps and none of them exceed 20 % and I have the same conditions. I think that reviewers look on amounts of net % and gross % adjustments. For instance: net is 9.0% and gross 15.5%; 9.0 + 15.5 = 24.5%

 

[danny nguyen]

Not that, let's say you have 3 comps after adjustments. Comp 1 value at 400K. Comp 2 at 380K and then you have comp 3 came in at 475K. Your appraised value is 390K. There is a difference in value from 390K appraised value and 475K for comp 3. Explain the difference why 20%+/- in value.

 

[Mike Kennedy]

:icon_idea: Olga, suggest using the ol KISS rule...and JUST read the ONE SENTENCE from your post below.

FORGET all the rest you typed for a minute. Slowly read the sentence below ....twice.............then LOOK at your Sales Comparison Grid -

JUST look at the LAST LINE across the bottom of the Grid

...i.e. @ JUST ......the adjusted values for the comps.

THEN @ your value opinion for the subject.

"One or more comparable used has an adjusted value greater than +/- 20% of the appraised value."



example: OV Subject $100,000.

ADJ. Sale Price C1 90000, (-10%)
ADJ. Sale Price C2 125000, (+25%) <<< exceeds 20% variance OV 4 Subject.
ADJ. Sale Price C3 11000, (+10%)


Review all adjustments to all 3 comps, identify WHY the Adjusted SP (bottom of grid) EXCEEDS 20% of the Value Opinion for the Subject, confirm adjustments in grid are correct, then EXPLAIN why it varies by 20% or more

 

[OlgaM]

Thank you!!!!