REO Listings in the 1004 Grid Rather than REO Addendum

[ZZGAMAZZ]

A few months ago I started to include my active listings and pending sales in the 1004 grid rather than the REO addendum because it seems more logical, because adjustments can be applied to these comparables to establish an adjusted values for the pendings and listings that can be compared with the sold comps, when determining an opinion of current market value.

I refer the client to the 1004, in the REO addendum grid, and disclose my rationale for doing so.

Ditto the REO narrative sections.

This method hasn't been questioned or rejected by any client.

It's a way of providing a form report without being subject to the rigid requirements of using a form.

Ain't that innovative!

 

[Tom Woolford]

Are you aware that there is a quantitative version of the REO addendum that does allow for adjustments?

 

[KenAZ]

Are you aware that there is a quantitative version of the REO addendum that does allow for adjustments?

There are some clients that require the listings on both the REO addendum AND the 1004 grid.

Some require the use of the 2006 REO addendum (You have to call your software provider to get this form)

Pretty lame, yet still a requirement. When you make your location map, it has two arrows to three of your listings.

 

[ZZGAMAZZ]

I am not familiar with a different version of the REO addendum but that sounds practical, although the client typically stipulates which form version to use and i'm not sure that a single appraiser would have voice enough to get that changed.

 

[Jo Ann Meyer Stratton]

I have for many years put my active/pending comparables as #4, #5 and #6. Property dispostion division of Fannie Mae requires it to be done that way. They also require the REO addendum, but only a note on the grid that the information is on #4, #5 and #6. Had a new client the other day that wanted the active/pending comparables on the REO addendum and wanted the adusted. So I called them #a, #b and #c and then in the commentary said to see Comparables #4, #5 and #6 for the information. When I created my map I chose comparables only and all the arrows matched the sale grid. Haven't had any response so far.

 

[Smokey Bear]

I've seen some people do both - listings as comps 4-6, and on the REO addendum. I love it when I see the other REO addendum that allows for adjustments.

 

[Mike Garrett RAA]

What is the purpose of including listings? To indicate the present market competition. How can that be value if those listings are not adjusted? I perfer to put them in as Comps #4, #5, and #6 and just reference them on the REO addendum. Same holds true for the VA liquidation addendum which calls for listings.