LO or UW requests?

[Pamela Crowley (Florida)]

Subject is a 2/1.5, 1,182 GLA townhome; very nicely updated.

Comps are:
2/2.5, 1,270 GLA - average - subject subdivision
3/2.5, 1,647 GLA - average - subject subdivision
3/2.5, 1,441 GLA - updated similar to subject - closest competing subdivision 1.5 mile proximity.
3/2.5, 1,632 GLA - average - subject subdivision
2/1.5, 1,172 GLA - below average condition - subject subdivision - sold 1 year ago.

In order to bracket and because it's going on to additional comps page anyway, I went ahead and used all with the year old one as 5th comp in order to bracket GLA.

LO is a downstate mortgage broker. Sale is a FSBO and there was no way to make the contract price. He calls today and tells me that the UW wants me to delete comp #5 as it's adjusted value is low - delete all reference to it. Also, to change the contract price to match the appraised value. FANNIE AND FREDDIE - ARE YOU READING THIS???? So I tell him to please fax his request to me with the new contract signed by both the seller and buyer. He throws a fit and can't understand why I would want anything in writing. I'm now wondering if these changes are really from the UW or his own ideas on how to get it through underwriting. I don't know about the rest of you, but in my experience with GLA this far apart from the subject, UWs usually ask for any comp that would bracket it.

Comments welcome.

 

[larryhaskell]

Pamela:

Something smells fishy and it isn't the halibut you have grilling for dinner. LOs and underwriters can ask for anything they want but you know as well as I that its up to the appraiser to decide what to include and what to take out. I can't remember a time when I was asked to change the sale price to match the estimate of value if I failed to support the sale price and it was subsequently change. Your appraisal gives the buyer and seller an opportunity to renegotiate the sale price. If they change the sale price to match your estimate of value, I see no reason to change your report. The sale price and estimate of value are now the same and it irrelevant what the original sale price was or so it seems to me.

 

[wyecoyote]

Pamela,

You nailed it this is more than likely a LO request which is why you won't get anything in writing.

Ryan

 

[Tim Hicks (Texas)]

Pamela, Pamela, always throwing a wrench into the works. I always ask for underwriter requests in writing, too. It seems their suspicious requests go away when you ask them for it in writing. I always ask for it on company letterhead, too. Since when did underwriters think they could tell us what not to put in a report or what to put in a report. Just send them a blank URAR and tell them to fill it out how they want and sign it themselves. Yes, I have better people skills than this, but I think we should point out that we are the appraisers, not them. I have no problem correcting mistakes or re-wording so they can understand, but I draw the line and comp selection and appraisal ultimatums.

 

[Richard Carlsen]

I agree with Tim.

We are the judges of what goes in the report, of what is relevant and what is not. Tell them that because the contract price was higher than the appraised value, you used additional comps to support market levels so there would be no question that the sales price exceeded the established market levels.

And hey. You are in Florida. How can you have trouble with "downstate lenders"? Are they in Cuba or what? I thought I was the only one with a downstate lender problem.

 

[Blue1]

You're right, of course, if the sale price is changed, you need a contract addendum signed by both the buyer and seller and dated. Looks to me like comp 1 and comp 5 are the most similar in GLA. Given the info you gave, I don't think a UW would ask for "1 more comp" but that's just my opinion.

 

[Pamela Crowley (Florida)]

You're right, of course, if the sale price is changed, you need a contract addendum signed by both the buyer and seller and dated. Looks to me like comp 1 and comp 5 are the most similar in GLA. Given the info you gave, I don't think a UW would ask for "1 more comp" but that's just my opinion.

Bruce,

I meant that if I hadn't already included #5, which was the only one with $0 GLA adjustment and 2/1.5, typically an UW would have asked for an additional comp more similar in those items. I included it so I wouldn't be asked for it later.

Thanks to all of you for helping me believe my intuition.

 

[JM2187]

Pamela,

You indicated "He calls today and tells me that the UW wants me to delete comp #5 as it's adjusted value is low." Did comp #5 support the value at all? How much lower was the indicated value (percent)?

I've seen reports where appraisers have thrown in comps like this, to match up GLA when the other sales are much smaller or larger, but adjust the thing down so low that it makes it appear that the final value is overstated based on the superior (larger) sales. Just creates more questions than answers.

Joe

 

[JM2187]

How do you like this one?

Subject GLA 1876

Comp 1 GLA 1618 1 mile sp $83000
Comp 2 GLA 3130 4 miles sp$276000
Comp 3 GLA 2018 23 miles sp$193000

indicated value range $157,000-$200,000

Never a dull moment...

Joe

 

[Pamela Crowley (Florida)]

Joe,

Why would they tell me to delete all reference to the 5th comp but will not put it in writing and will not let me talk to the underwriter? The LO tells me they can't close because of it.

If someone can give me a good and reasonable explanation of WHY and put it in writing to me, I'll do it. I've just never had any underwriter insist on removing a comp that brackets both GLA and bathrooms; they always ask for one no matter how old.

I'm confused here.