No Adjustment Because Condition Is "assumed"

[AMC guy]

Just looking for guidance. I have a 1004 here, and on the grid the appraiser has the subject (C2) and three comps - each of which are given different condition ratings (C1-C3), but no adjustments. (No adjustment for age differences, either) The appraiser comments "No condition adjustment was given because the condition of the comparable is assumed based on the information provided by the MLS listing sheets and not from first hand observation". If that were true, why do hundreds of other appraisers make condition adjustments? If an appraiser assumes the condition, shouldn't they go ahead and make warranted adjustments? I don't know about anyone else, but I think, all things being equal, if I had a choice between a C1 home and a C3 home, who wouldn't take the C1? I get that appraisers are suppose to make adjustments based on "market reaction" but it isn't passing my "sensitivity analysis" or my SWAG approach.

 

[J Grant]

his explanation imo makes no sense

 

[Mike Kennedy]

If the appraiser (small a in this case) had questions or doubts about the condition of the comparables, due diligence requires contacting either the Listing or Selling agents - or both for clarification of listing information. IF typical local buyers (demonstrated by the comparables) DO adjust offering/sale prices based on Condition (as one key element) - then it is entirely probable adjustments in the grid should reflect their Actions based on THEIR reaction to Condition (and other comparative elements). IMO, your "gut" reaction is correct.

 

[Mr Rex]

Some people are just stupid. Just saying.

 

[Michigan CG]

The question is why does the AMC use this type of person, he is obviously an idiot unless he has a very long explanation in the reconciliation and addresses it narratively with a qualitative analysis. I am going to assume that is not the case.

 

[Terrel L. Shields]

question is why does the AMC use this type of person

cheap and rapid turnaround...why else?

 

[timd354]

Just looking for guidance. I have a 1004 here, and on the grid the appraiser has the subject (C2) and three comps - each of which are given different condition ratings (C1-C3), but no adjustments. (No adjustment for age differences, either) The appraiser comments "No condition adjustment was given because the condition of the comparable is assumed based on the information provided by the MLS listing sheets and not from first hand observation". If that were true, why do hundreds of other appraisers make condition adjustments? If an appraiser assumes the condition, shouldn't they go ahead and make warranted adjustments? I don't know about anyone else, but I think, all things being equal, if I had a choice between a C1 home and a C3 home, who wouldn't take the C1? I get that appraisers are suppose to make adjustments based on "market reaction" but it isn't passing my "sensitivity analysis" or my SWAG approach.

Appraisers like this this individual are why watch lists and exclusionary lists are needed in the secondary market

 

[J Grant]

An appraiser may not make a condition adjustments between comps but if not, there needs to be a logical and market based explanation provided. This explanation is garbage and makes no sense whatsoever. It's upsetting to read posts about or from clueless appraisers who are busy . What is their appeal...fast turn time? Sale prices always comes in? Low fees? Meanwhile there are highly qualified appraisers not getting many res lending assignments so something is amiss.

 

[hastalavista]

First-

Kudos to you, OP, for coming on a forum like this and getting appraiser feedback to the report issues you are identifying. Just keep in mind that there is a wide range of experiences and perspectives here, and just because you hear/see it on this forum doesn't mean you should take it to the bank.

In this case, however, I think it is fair to say the report you are looking at has an issue.

As to the question of AMC screening appraisers, I think I'll post my thoughts on that in another thread.

 

[huntercharlie]

My guess, and it's only a guess, appraiser may have utilized some of those comparables on prior appraisal(s) and doesn't want to change the condition ratings.