Reconsideration Of Value, How Do You Handle It?

[Deleted member 80407]

i offered 2 comps in the same school district, and 2 comps in the same town as the subject.Why would i use comparables in a different town when i have comps in the subjects town that is in the same school district. I made no adjustment on the grid for location due to the school district..Why don't they comment on why my comparables are inferior to those submitted by the borrower? It should be a 2 way street! My mistake was to mention the school district to begin with! Violating the rule " give them only what they need! "

Joe, were the additional comps for reconsideration of value located within your stated market area? If they are located outside your stated market area, one would have to ask why you are being requested to leave the area for comparison. The MLS service which I belong to has a mapping feature which I utilize. I cut & paste a market area map (which is high lighted) in every report completed.

Differences in school districts do command a premium, however, an appraiser quantifies the adjustment through a location adjustment. Appraiser's are not experts in school districts. Is there any difference in the sales prices from the school district the subject is located in to that of the comps presented outside the district?? . If so, the difference would be considered within the location adjustment. If not, a comment should be added stating no market evidence to a support an adjustment for differences (if any) in location. However, one should avoid any verbiage pertaining to differences in school districts.

EXAMPLE: Subject property located east of State Street which has higher overall properties compared to west of State Street. Differences in location are illustrated through paired sales.

 

[J Grant]

I have had one client pay of the additional comp. I have the rest say, "Never mind."

Never mind they won't pay, or never mind forget considering the additional sales?

Do these clients in either case give you repeat business afterward?

 

[Eli]

Never mind they won't pay, or never mind forget considering the additional sales?

Do these clients in either case give you repeat business afterward?

Me telling Joe to file a complaint is his death sentence with that client and maybe worse. Therein lies a problem.

 

[Randolph Kinney]

Never mind they won't pay, or never mind forget considering the additional sales?

Do these clients in either case give you repeat business afterward?

Yes, they give me repeat business. Never mind = no addition sale.

Put a price tag on something and find out what it is really worth.

 

[Eli]

Yes, they give me repeat business. Never mind = no addition sale.

Put a price tag on something and find out what it is really worth.

You are like me. You say go jump in the lake. But the pressure is still there.

Can you only imagine the pressure on some AMC's and staff appraisers? I feel so sorry for staff appraisers of AMC's. Same with staff of other major appraisal companies that are raping them and doing injustice to the profession.

May Lord have mercy.

 

[Randolph Kinney]

You are like me. You say go jump in the lake. But the pressure is still there.

I have had one lender who wanted to know why I don't consider additional sales. I said because I state the neighborhood boundaries, the search criteria used and I include a list of all properties that met that criteria. If the property is on my list, it was considered. If it is not on the list, it was not considered because it did not met the criteria.

You want me to consider a property not on the list? I charge $25. I will even put it in my report along with the request and state it was given no consideration because it did not meet my search criteria.

 

[JoeB]

Okay..let me clarify., the data available does not suggest a warranted adjustment solely because of the school district. There are no findings of a home having added value due to the school district.
The borrower first submitted comparables, after they were negated because of various reasons of being inferior in style, design, location , or condition, she now is keying on a statement I have apparently foolishly made. My reasoning for the statement of a desirable school district was to let the underwriter know that there can be appeal to those buying within the school district since it was ranked nationally. I did not specify there is added value to the property because of the school district.
I can review an appraisal, inspect the property and find an adjustment that they did not make. I can adjust for a different amount that they adjusted for! I can always come to a different conclusion. Is it the appraisers function to dissect each adjustment he makes and document supporting data for that adjustment? That being said, most appraisals will have some subjective reporting.
I have learned by this experience. I absolutely will not reconsider value to appease the borrower. Like I stated earlier, the borrower is fishing for value. As it is, i appraised it at the high end of it's value range.
I appreciate the opinions of my peers on this forum, Thank You!

 

[Eli]

Okay..let me clarify., the data available does not suggest a warranted adjustment solely because of the school district. There are no findings of a home having added value due to the school district.
The borrower first submitted comparables, after they were negated because of various reasons of being inferior in style, design, location , or condition, she now is keying on a statement I have apparently foolishly made. My reasoning for the statement of a desirable school district was to let the underwriter know that there can be appeal to those buying within the school district since it was ranked nationally. I did not specify there is added value to the property because of the school district.
I can review an appraisal, inspect the property and find an adjustment that they did not make. I can adjust for a different amount that they adjusted for! I can always come to a different conclusion. Is it the appraisers function to dissect each adjustment he makes and document supporting data for that adjustment? That being said, most appraisals will have some subjective reporting.
I have learned by this experience. I absolutely will not reconsider value to appease the borrower. Like I stated earlier, the borrower is fishing for value. As it is, i appraised it at the high end of it's value range.
I appreciate the opinions of my peers on this forum, Thank You!

If her comparables are better than yours, then grid them and reconcile them. End of story.

 

[Eli]

The fee is up to you. I know......more freebies ecpected. And pressure on value swept under the rug. I am assuming you did your homework.

 

[Terrel L. Shields]

Differences in school districts do command a premium,

What about where segregation regulations means a street may have children assigned to a school district and the "school district" as such does not exist and until you enroll the child, you don't know if they are bussed or not?