"Quantifiable Market-Derived Methods" for adjustments required by FNMA/USPAP

[J Grant]

WRt Realtor pricing-
They use for thier CMA or listing presentaion a plethora of glitzy quantifiable support - graphs and stats and charts from MLS. But they use it in the service of overpricing properties ( typically), and their selection of sales they call comps is often laughable.

 

[Surf Cat]

Do you think that is, in part, due to the fact that folks know Realtors are acting with a personal interest in the transaction, thus there's really no impetus for them to be impartial?

Sure..... however, they also have to kowtow to the seller's whims. Many sellers say we're listing at this price or you're not getting the listing.

I'm sure agents have tactics in where if they follow the seller's directives, and the property doesn't move, they convince the sellers to reduce the price.

 

[Surf Cat]

I generally just pretend it doesn't exist if I don't have what I think is sufficient data to estimate contributory value.

So.....you use your "experience".....

 

[alebrewer]

So.....you use your "experience".....

exactly! Those two options carry about the same support.

 

[Terrel L. Shields]

generally just pretend it doesn't exist

Really? Sgt. Schultz is alive and well. Never mind it might contribute considerable value to a property.

 

[alebrewer]

Really? Sgt. Schultz is alive and well. Never mind it might contribute considerable value to a property.

Glad to see sarcasm isn't lost on ya, Terrel.

 

[RCA]

REaltors do not need to prove any rational support for their price and they are not under an obligaiotn to price at "market value." They are sales people, first and last.

I understand wanting some qualitative support as ONE indicator of adjustment, but using only that, especially from a computer software click, can produce misleading results. And downplaying appraiser experience is part of the dismantling of the value the appraisers bring to the process.

Understand that at least experienced realtors have spent a lot of time in one-to-one, serious conversations with sellers and buyers. They should have an "intuitive" understanding of the buyers in a given market, i.e. the "expected market price." It IS the market that should dictate prices. But the governing undertones of the market, combined with probability profiles, are not that easy to understand. The appraisers cannot use "intuition" - they have to come up with objective estimates. MOST APPRAISERS are not at all equipped with tools to analyze the market - and resort to their frigging "intuition," - blathering nonsense.

Usually, it is the last person in the world who should be pushing them to such nonsense: The Chief Appraiser. The Chief Appraiser is the Devil when it comes to those 20-year crashes. We can't get rid of that SOB. (Who we must feel sorry for being stuck in the muddy swamp he created a long time ago - and has never been able to get himself out of. ). Some of the smart ones become rich, at least until they are caught or escape to some far off land. Some are not that well off. ... I can think of a few. )

 

[Dale Floyd]

When was "experience and feelz" ever a recognized method/technique for appraisal?

“Experience” is a term used all the time by professionals who are surgeons, accountants, lawyers, and GSE executives pointing back to their appraisal days of the past I’ve noticed. lol

It may not be acceptable for use in a fact driven analysis, but I’d personally take that over some of the corrupted data I’ve seen used here and there by a few. Just saying.

 

[DWiley]

“Experience” is a term used all the time by professionals who are surgeons, accountants, lawyers, and GSE executives pointing back to their appraisal days of the past I’ve noticed. lol

It may not be acceptable for use in a fact driven analysis, but I’d personally take that over some of the corrupted data I’ve seen used here and there by a few. Just saying.

It is certainly a combination of learning (course work, mentoring, etc.) and past experiences that result in one knowing how to apply the various techniques that can be used to support an adjustment - and that includes recognizing when the results are wonky (not to get too technical). But, it is the data and the analyses of the data that provides the support, not the past experience.

One can often re-use data and analyses from a prior assignment with similar elements. It is still the data and analyses that provides the support, not the experience of having done it.

 

[djd09]

experience doesn't matter...then why do appraiser have to do a two year intern...it is kool aid pouring time