No Adjustment Because Condition Is "assumed"

[Tim The Enchanter]

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.

You think they are paying that much attention?

 

[Mike Garrett RAA]

Doesn't make sense to me...but then what do I know? Only been doing this for 35 years. Listings on my MLS typically have 6 to 20 pictures. Fairly easy to see the condition. I also concur, if in doubt after reading the comments, looking at the pictures, comparing sold prices and adjusting for all other adjustable items, it would be prudent to have a conversation with the listing agent(s) for the comparables used in the appraisal.

If I have two properties that are basically the same and one sells for, say, $220,000 and the other sells for, say, $210,000 there very well could be a basis for a condition adjustment. I find in tract built housing IN MY MARKET a $10,000 adjustment attributable to condition very common and supportable.

Failure to make an adjustment when the appraiser uses different condition ratings would be a big red flag here. It also would be grounds for a user of appraisal services to seek another more experienced or seasoned appraiser.

 

[Tom D]

anybody old enough to remember when you could not make a condition adjustment, on a FHA appraisal, on the condition of the comp unless you saw the inside of that home, hmmm. appraisal history, where is my nurse. don't all MLS listings now have tons of interior photos to look at, we do.

 

[CANative]

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.

Somewhere in M&S and/or NADA there is a discussion of condition and "Average" condition assumes no inspection. I don't like the rationalization as written in the OP but I also don't think it is totally bogus.

 

[hastalavista]

I don't like the rationalization as written in the OP but I also don't think it is totally bogus.

It is inconsistent with the SOW for typical GSE assignments.
The expectations of the client and the action of peers is to rely on MLS descriptions assuming what is described in the MLS is consistent with other confirmation processes (such as driving by or interviewing the agent/parties to the transaction).

I think what would be acceptable is if the report stated that it is relying on these sources to conclude its condition rating and they are deemed reliable but cannot be guaranteed.
What the report seems to be doing is saying,
"I don't care what these other sources say. Since I haven't verified it personally, I'm assuming everything is the same."
That isn't reasonable given the assignment type, SOW, client expectations/peer actions (IMNSHO).

 

[djd09]

Just because there are different rating doesn't mean there is an adjustment. The appraiser probably didn't hit the number now they are nit picking the appraisal.

 

[timd354]

Just because there are different rating doesn't mean there is an adjustment. The appraiser probably didn't hit the number now they are nit picking the appraisal.

If that appraisal came into to my company, it wouldn't be nitpicked, it would simply be rejected...I could care less what the appraised value is as that would just be a meaningless, unsupported number on such a sorry report.

 

[CANative]

So you think any difference between the cells requires an adjustment?

 

[timd354]

So you think any difference between the cells requires an adjustment?

No, I do not and have seen some acceptable appraisal reports with no adjustment made between C1 and a recently totally rehabbed home that is C2. However, I would certainly expect to see a reasonable explanation of why no adjustment is appropriate.

The reason I would have rejected the report in this case is because of the comment "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" in no way justifies not adjusting between C1, C2 and C3....In fact, that comment tells me that the appraiser is not competent and the report is not credible. It also tells me that he was apparently too lazy to call the real estate agents if he had questions about condition of the comps

 

[djd09]

i don't know how you can make a judgement on an appraisal report without seeing the whole report. Seems the line the appraiser used is truthful as we do not have first hand observations of the comparables insides and most rely on MLS photos.