MLS Comp Photos WTF!

[Mike Kennedy]

So much for that idea.

 

[Pamela Crowley (Florida)]

Mike, it IS one of the biggest problems in the appraisal business. How bad is it when an appraiser posts here complaining about being 'caught' not doing what he signed he did, and actually thinking what he's doing is OK?

 

[New Orleans Guy]

This thread can die, that is fine with me. I was just being honest. I never push value, have never made up a comp and defend every value I have ever given. If was in an area like some have described where every house has a different elevation, differing views, lot size etc. that would be different. This was a cookie cutter neighborhood and the subject was described in great condition but really was average with some updates. I know know to not post here unless I am doing everything perfect. I am sure the hundreds of people on this forum call every agent and homeowner, measure the comps, and go to the courthouse looking at all the sales in the area, then drive them all and walk around the yard looking at them.

Can someone close this thread?

 

[Pamela Crowley (Florida)]

John, I would hope that this thread shows that many, hopefully the vast majority, actually do what the Fannie form certifications state. This is an extremely important issue and I'm glad it was brought up.

 

[Mike Kennedy]

Post 1

"I look for possible comps that I will need and see that from the range of 3/2 homes in the area there are 28 possible comps from 1200-2300 sqft. I notice that 2 don't have MLS photos so to be safe I go to those after my inspection to look at and take photos of them.

Now it's back to the office, 30-45 minutes depending on traffic. Input my sketch, find the GLA size, think about the condition of the subject, then find the 3 or more comps that BEST FIT the subject out of the 28 that sold in the area. After finding them, adjusting them and working up a nice report with low adjustments, am I supposed to take the 1-1.5 hour round trip to photograph the comps I just used? OR, and I supposed to take all 28 comp photos when I am in the neighborhood?"

John, it appears from the OP:

a. all 28 possible comps were sold "in the area"
b. the 2 w/o MLS Pics and the "3 or more comps that best fit the subject OUT of the 28" possible comps - had already been identified prior to the Site inspection.
c. you state you drove ONLY the 2 w/o ML pics - yet - you WERE "in the area" and HAD ML listings on the "3 or more" you ultimately used as Comps.

IMO, the only questions are based on the above extractions from OP -

A. If you HAD all 28, and were "in the area" shooting the 2 comps which had no ML pics........ why would shooting the additional 3 or more require a second trip?

As others stated, a cup o' cawfee, 15 mins on the side of a road to identify and locate those "3 or more" on a location map - then VISUALLY inspecting THEM ( and shooting them or the obstructions in front of them for inclusion in the report supporting your opinion as to why orig pics of those "3 or more" were NOT possible) - during your drive-through "the area" would clearly prevent a second 1-1.5 hour trip on another day.

B. When completing, signing, and delivering the completed report, did you, or did you not, certify you HAD visually inspected those "3 or more" from at least the road?

Please address those questions and/or correct me. Thanks.

 

[Lobo Fan]

I ran 19 comps for one and 14 for the other yesterday. They were out in the boonies and I did not want to go back. Running 15-20 comps per inspection is fairly common for me. I would rather run a few irrelevant comps than have to go back.

Cutting corners is cutting corners. What is next? Not going inside for a 1004? Not measuring? Inventing comps the make those low adjustments? Cheating is cheating. Cheating a little still makes you a cheater.

 

[TJSum]

This thread can die, that is fine with me. I was just being honest. I never push value, have never made up a comp and defend every value I have ever given. If was in an area like some have described where every house has a different elevation, differing views, lot size etc. that would be different. This was a cookie cutter neighborhood and the subject was described in great condition but really was average with some updates. I know know to not post here unless I am doing everything perfect. I am sure the hundreds of people on this forum call every agent and homeowner, measure the comps, and go to the courthouse looking at all the sales in the area, then drive them all and walk around the yard looking at them.

Can someone close this thread?

My red above. That is the entire point, have this same policy with your reports as you sign them stating you did in fact drive the comps. It is part of the SOW and your job. It is one of the remaining differences between an appraisal report and an AVM. The more corners we cut, the closer we are to ending our own profession.

 

[Doug Smith SRA]

Wiggle Room

It is easy to dismiss this thread as much ado about nothing. But John keeps making an important point. MLS photos are the de facto standard. In the last 10 reports I reviewed, one used custom photos, two used mixed and 7 used all MLS photos.

Sidebar

There is side issue no one seems to addressed. MLS photos in some MLS services are copyrighted and use is prohibited for commercial use. I don't know if using a copyrighted photo in an appraisal report is fair use. Maybe Webbed or Mr. Rex will report on this issue.

Back to the main issue

The real issue is assurance. The client is there and appraisers are here and clients depend on appraisers to tell them what is going on in the market. Clients expect that appraisers go to the neighborhood and inspect the comparable and everything around it.

In the 1004 Fannie Mae states the following:

SCOPE OF WORK: The scope of work for this appraisal is defined by the complexity of this appraisal assignment and the reporting requirements of this appraisal report form, including the following definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visual inspection of the interior and exterior areas of the subject property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report.

John makes the point, I think, that one time or another, he has driven past the comparable because he has driven all the streets in the neighborhood. All he certifying is that he inspected from the street.

My review report will not make any accusations. I will just report that Comparable photo exhibits in John's reports were derived from MLS sources without comment or attribution. MLS photos are the de facto standard because lenders don't seem to care that all the comparable photos have for sale signs in front or snow on the roof in the middle of summer.

Appraisers are playing the game, "It depends on your definition of inspect." There is evidently wiggle room as Bill Clinton was fond of finding.

The larger issue is that if appraisers are going to skip actually "inspecting" comparables, it might occur to someone that why have appraisers even leave their office. The AVM certainly does not inspect from the street and with Google Street views, it might not even make sense to go to the subject on a drive-by appraisal

Appraisers main business is assurance; clients pay for feet on the ground. If appraisers give up on assurance and rely on wiggle room, then the business need shrinks.

Doug

 

[Pamela Crowley (Florida)]

If this issue was before the Florida Real Estate Appraisal Board, they would revoke his appraisal license, as they have done before when the appraiser did not personally drive by the properties used in Fannie form reports.

 

[TJSum]

The first day starting out on this career, 20 years ago, my mentor told me something I will never forget. THERE ARE NO SHORTCUTS IN THIS BUSINESS. Yes, most do attempt to cut corners here and there, but it only takes one mistake to end your appraisal career. Some can go years, decades even, cutting corners, but one never knows which potential mistake could prove fatal to a career. If you wish to have a long career, and also be able to sleep good every night, don't take any shortcuts.