Reconsideration of Value - Comp photos

[Zoe]

Lobbyist.

 

[residentialguy]

I have only had a few ROVs. They don't take long. Just a new revised report and explanation is all the client wants. It is usually heavily biased client that is pressuring the client and it give them an out for why it is what it is.

Buyer, realtor, seller, etc calls lender and complains like crazy. Lender calls appraiser and says I need to request ROV. Appraiser says okay.

I won't let my client send me a bunch of crap on an ROV. I set the rules with my client on an ROV. I am responsible for SOW.

USPAP makes it very clear who is responsible for SOW.

It's not as intensive as a full report, but it is just as intensive with the comps. You have to drive out there. Make another inspection, analyze and verify the sales. You're having comps to your report, and you have certified that you have inspected them from at least the street and have analyzed and verified the sales.

 

[Fritz in NY]

So, we are competing another report for free every time value comes in LOW. Who should care about "original photos" when we are basically starting a NEW work product, the ROV review. When will it end?

 

[residentialguy]

So, we are competing another report for free every time value comes in LOW. Who should care about "original photos" when we are basically starting a NEW work product, the ROV review. When will it end?

Simple. Charge them... unless you screwed up; then you wouldn't charge them because they should have been in the original report.

 

[Cob]

The mistake unless it changed the appraised value was including it in ROV (revised) appraisal.

You have to keep it clean.

Apparently you didn't take the time to readt my post.

" just state that even though it's a good comparable sale that supports your opinion of value, the comparable sales already utilized in the appraisal report are fine, if they insist that you use their sale in the report, since it's FHA and you would have to go take the photo 45 minutes away, explain to them there will be a fee, then see how FAST they say, it's okay, no need to add their sale."

 

[Cob]

Yes... when the appraiser still thinks he got it right the first time. I have seen... too many... appraisals get revised based on Client provided data that the appraiser either missed or had no access to. I suspect more often it's an appraiser who was not thorough. When that happens... and the appraiser revises the report to add additional comparables to the grid... then photos of those are required. Not by USPAP... because of Client requirements.

I have had ROV where they sent me 1-3 comparables to review/comment on that I already had in my work file, say I had 7-8 comparable sales in my work file and I utilized 4 closed sales, 2 of the sales I utilized in my report were sales that "I" made the choice to use for whatever reason and were both say sold for $350,000, both were 3 bedroom, 2 bath properties with a 2 car garage and one or two of the 1-3 comparables to review/comment that was provided to me, also sold for $350,000, were 3 bedroom, 2 bath properties with a 2 car garage, but, I just didn't use them in my report, that DOESN'T mean that I missed them or had no access to them or that I was not thorough, it just means that "I" just made the choice not to use them.

This is why I don't like ROV, it seems like it's ALWAYS, they send me 1-3 sales that are NOT comparable at all and break all of their rules for ROV sales like dated sales, over 2 miles away or are already in the appraisal report, or they are comparable sales that I already have in my work file that already support my opinion of value, but since I had 8 possible comparable sales in my workfile and used the 4 sales, they send me the other 4 comparable sales I didn't use. I end up WASTING 30 minutes making comments on the comparable sales I DIDN'T use. So it's not always the appraiser that wasn't "thorough" it's lender that aren't being thorough.

The all time best is a ROV I received once a few years ago, the subject property was a 1-story home, about +/- 1,800 SF, 3 bedroom, 2 bath, 2 car garage, the ROV had just one sale they wanted me to comment on as to why it wasn't utilized in my appraisal report, in thei comments they noted that their sale the were providing was located on the same street as the subject property and was a 2-story, +/- 2,800 SF, 5 bedroom, 4.1 bath, 3 car garage. I called the client and spoke to someone and explained to them that I didn't think I really needed to comment as to why this sale wasn't included in the appraisal report as the person that was requesting me to comment on this sale has ALREADY explained why it wasn't used.

He read the request, he couldn't stop chuckling, he said he had no idea why it was sent to me, he cancelled the request and said he would talk to the person about it and I moved on with my day. So it's not always the appraiser who isn't thorough, sometimes it is, bit not always.

 

[Tom4value]

I have not read all comments but here is my take.

If you find mistake in what I do, I will correct it.

To your point, I review (read: glance) at all possible comps. I truly do! So in 100% of the time, I can explain away all of the sales they provide and not leave my chair.

If we go back to the first point and go, “oh, crap, they are right and my value is wrong!”, yes, I will go out and take photo of the comp. About 60% of the time, they are right. The other 40%, I am right and I go back and prove them wrong.

To make myself feel happy, I do a victory dance.

 

[sputnam]

Many appraisers don't care what USPAP says.....why should AMCs

USPAP isn't for AMCs. Only appraisers are required to comply with USPAP. I agree that some appraisers don't care what USPAP says. Others don't know or understand what it says. Still others, know what they are supposed to do but, don't do it because it's easier and faster.

 

[sputnam]

I have had ROV where they sent me 1-3 comparables to review/comment on that I already had in my work file, say I had 7-8 comparable sales in my work file and I utilized 4 closed sales, 2 of the sales I utilized in my report were sales that "I" made the choice to use for whatever reason and were both say sold for $350,000, both were 3 bedroom, 2 bath properties with a 2 car garage and one or two of the 1-3 comparables to review/comment that was provided to me, also sold for $350,000, were 3 bedroom, 2 bath properties with a 2 car garage, but, I just didn't use them in my report, that DOESN'T mean that I missed them or had no access to them or that I was not thorough, it just means that "I" just made the choice not to use them.

This is why I don't like ROV, it seems like it's ALWAYS, they send me 1-3 sales that are NOT comparable at all and break all of their rules for ROV sales like dated sales, over 2 miles away or are already in the appraisal report, or they are comparable sales that I already have in my work file that already support my opinion of value, but since I had 8 possible comparable sales in my workfile and used the 4 sales, they send me the other 4 comparable sales I didn't use. I end up WASTING 30 minutes making comments on the comparable sales I DIDN'T use. So it's not always the appraiser that wasn't "thorough" it's lender that aren't being thorough.

The all time best is a ROV I received once a few years ago, the subject property was a 1-story home, about +/- 1,800 SF, 3 bedroom, 2 bath, 2 car garage, the ROV had just one sale they wanted me to comment on as to why it wasn't utilized in my appraisal report, in thei comments they noted that their sale the were providing was located on the same street as the subject property and was a 2-story, +/- 2,800 SF, 5 bedroom, 4.1 bath, 3 car garage. I called the client and spoke to someone and explained to them that I didn't think I really needed to comment as to why this sale wasn't included in the appraisal report as the person that was requesting me to comment on this sale has ALREADY explained why it wasn't used.

He read the request, he couldn't stop chuckling, he said he had no idea why it was sent to me, he cancelled the request and said he would talk to the person about it and I moved on with my day. So it's not always the appraiser who isn't thorough, sometimes it is, bit not always.

And when they do... all you are required to do is respond to the ROV. When the additional sales provided aren't comparable to the subject you just say that they aren't because they are located 40 miles away or they are 1,000 sqaure feet bigger or they sold seven years ago or it was already used in your appraisal repor or whatever. The best ROV managers within the Lender/AMC will look at the alternate data and won't even bother you if it's clearly not relevant. I know that... because managing ROVs used to be my job and that's how we did it.

 

[Tom D]

Never had to say more than a line or two about why not a comparable. If CU provides the sales, they typically are not good comps. And the other one is the 3 highest sales in the neighborhood, reguardless of not being comparable. I can understand underwriters concern if you got a bad CU score with CU screaming, what about these sales. In the last 10 years of r.e. inflation, how many values were done below the sale price. One of the things good about non linear time it that is shows if the value has gone down in 12 months, or some part months.