Realtor handed me 14 comps.

[Zoe]

That is going to burn AMCs and gses.

 

[George Hatch]

Yes... but don't throw them away. Leave them in your work file for when someone wants to know... 'why didn't you use that one?' You then can honestly say that you considered it and kept it in your work file.

It seems like many appraiser have gone completely insane. There is absolutely NO prohibition against a Realtor handing you a stack of sales. They will call them 'comps' but, they aren't comps until the appraiser says they are comps. You take them and say "Thank you!". You are not required to use them in your valuation.

Agree completely

If an appraiser is working to specs then they're already filtering through way more data than they're presenting in their reports. Even if their consideration for which do/ don't bear more attention is happening over the span of a few seconds. "That one is way too new, or too large or too small or too far away; and so on that basis don't fit my search parameters." This form of triage is just another expression of data analysis.

Whether it's happening on your screen during an MLS query or happening in your car when you look at a broker's data dump, it's still the same process. You're looking and analyzing, even if only to filter. Rejecting as "doesn't fit" isn't any less of an analysis when it's a stack of broker data than when you're doing the same thing to the results of an MLS query. It's just part of your process.

 

[shrubberyvaluation]

I just say thank you. One time for a $600,000 sale I was handed one that sold for $225,000 and one that sold for $4,000,000 that were in no way similar at all. I keep my mouth shut and don't waste my time. I can take 30 seconds or so to at least look at what I'm given and see if its worth giving more time too.

 

[J Grant]

I just say thank you. One time for a $600,000 sale I was handed one that sold for $225,000 and one that sold for $4,000,000 that were in no way similar at all. I keep my mouth shut and don't waste my time. I can take 30 seconds or so to at least look at what I'm given and see if its worth giving more time too.

It is usually a waste of time, but if we quickly review the sales, then we can say we looked at them. One more unpaid job for us to add to the list.

Their "comps" can provide entertainment value as some of the sales or comments are beyond ridiculous.

 

[djd09]

No person is allowed to influence or attempt to influence the development, reporting, result, or review of an appraisal through coercion, extortion, collusion, compensation, inducement, intimidation, bribery, or any other manner, including, but not limited to:

...they violated air...and you help them

 

[George Hatch]

No person is allowed to influence or attempt to influence the development, reporting, result, or review of an appraisal through coercion, extortion, collusion, compensation, inducement, intimidation, bribery, or any other manner, including, but not limited to:

...they violated air...and you help them

I already showed you the reference which says that merely providing sales data does not fall under the definition of the term as is being used in the regs.

 

[djd09]

Yes, a realtor (specifically the listing agent) can initiate a reconsideration of value (ROV) to challenge a low appraisal by submitting, through the lender, evidence of errors, missed improvements, or better comparable sales. While the borrower must typically request the ROV through their lender, the realtor plays a crucial role in gathering evidence, analyzing the report, and documenting why the appraisal should be revised.
NAR.realtor +2
Key details on how a realtor can initiate this process:

• Submit to Lender: The request must go through the buyer's lender, not directly to the appraiser.
• Provide Evidence: Realtors should supply 3–5 superior comparable sales ("comps"), highlighting why they are more relevant than those used in the report.
• Identify Errors: Highlight factual inaccuracies like incorrect square footage, bedroom/bathroom counts, or missed renovations.
• Timeline: The process should be initiated promptly after reviewing the appraisal report.
  Working RE Magazine +4

Realtors should use a professional, data-driven approach focusing on factual discrepancies to increase the likelihood of success.

...

 

[ZZGAMAZZ]

When there's lots of data to consider I often set forth my search parameters for the comparable selection I'm using, and then comment that I researched and considered to one extent or another a total of 45 (or whatever the number actually is) listings or sales transactions before narrowing to the 4 or 5 that I consider to be the most comparable.

Assuming that's what you actually do: look at the many before narrowing to the few. Which if you aren't already doing then you should be doing.

If a broker hands me a list of properties to consider then I disclose that along with the factual observation that most of those do not fit my search parameters and cannot be considered as directly comparable to my subject as the ones I presented. If 2 or 3 of those sales already appear in my report I point that out. If all of my comps are on that list then I point that out, too.

The vibe we're going for is that our analysis covered a lot more sales transactions than just the ones being presented as being "most similar", and that even the ones that aren't as directly comparable can still contribute context to our analyses in which to analyze the smaller subset of comps we're using in the report.

There are too many appraisals being performed where the appraiser is picking by price and not even looking at anything else. The numerical conclusion that results from that can be okay but the point remains that its still a more superficial analysis than when an appraiser is looking at a lot of data before narrowing the few for their report.

It's when the reader gets the idea that the appraisal is based solely on the few sales in the SC that they can alter the outcome by swapping a couple of comps. The appraiser who is only looking at a few sales will be more vulnerable to that type of appeal than the appraiser who used a more comprehensive analysis and actually knows what they're talking about.

I think my ACI software has a "Farming List" of properties originally considered but subsequently filtered out. In ur opinion would that type of unfiltered list be appropriate in a report???

 

[ZZGAMAZZ]

I went to a purchase inspection. The house was vacant so I was measuring and taking photos. Suddenly the agent shows up out of nowhere and is like, "hey I'm here to drop off some comps." So I took them and he came up with 14 comps.....Would you address each one in the appraisal, or just not even mention them? Some are really bad.

Although I Always elicit comps upon which the listing strategy was based, or upon which the offer was based... though the unsolicited, inverted list is Always a PIA but one cant arbitrarily determine a maximum number of recommendations. Like Ludi says "one sure way to get em outta der pants..." ... is to accept some of the recommendations-- as the basis of a revised LOWER opinion of value!!!

 

[djd09]

Appraisal Updates for Realtors​

Michelle Czekalski Bradley, chair of the Appraisal Standards Board of the Appraisal Foundation, highlighted the new Reconsideration of Value policies released by the U.S. Department of Housing and Urban Development in a recent PAR webinar.

What is Reconsideration of Value?

The ROV process, effective starting Oct. 31, is a new standard process for borrowers to request a reconsideration of an appraisal through their lender if they believe the appraisal has deficiencies.

The ROV process must be initiated by the borrower, who can request an ROV through a lender who offers Fannie Mae, Freddie Mac, HUD and the Federal Housing Administration loan products. This specific new ROV process does not apply to Veterans Affairs guaranteed mortgages.

“This ROV process is brand new and came out of the appraisal bias issue. The government wanted a more formal and uniform reconsideration process” Czekalski Bradley said. “While the process must be the same, individual lenders may customize their own forms to use in the process.”

Appraisal Updates for Realtors® - Pennsylvania Association of Realtors®

Michelle Czekalski Bradley highlighted the new Reconsideration of Value policies released by HUD in a recent PAR webinar.

www.parealtors.org

limited to five sales...not fourteen...and dont forget appraisal bias