Net and Gross adjustment

[Greg davenport]

I was looking over a review file to see if anything jumps out at me, (NO, I will not do the review) As soon as I got to the comps, I see a few "issues"
Keep in mind this was done on the "new" Fannie 1004

comp 1 has a net adjustment of 74.3% and a gross adjustment of 98.3%.
comp 2 has a net adjustment of 50.9% and a gross adjustment of 53.9%
comp 3 has a net adjustment of 57.3% and a gross adjustment of 77.7%

Only 3 comps were used, and the comments dont explain anything. just a simple no better comps were found boiler plate.

The subject is 1500 sqft but it is on 61 +/- acres.

 

[CANative]

The report is not in compliance with supplemental standards for most GSE's. Excessive adjustments MUST be explained.

The report is a reject even if the adjustments were appropriate.

 

[kim grant]

well, this is why some reports are sent out for review.

If you were take the assignment the first order of business would be to charge more than full appraisal fee for the work then HBU analysis and then move from there. It could be that a new appraisal is recommended as it's not within the scope of a reviewer to re-appraise from desk or a drive by. Every property has value and a correct procedure for developing value. Sometimes the lender is looking for a rubber stamp -make sure you are comfortable with your level of competency on any assignment you take so that you are not rubber stamping (dangerous!)

Good Luck!! Kim