request to "support value"

[Renee Borne]

I got a request to add a listing or a pending to support the value on my appraisal. Why would I do that? I used comps that closed 1 to 2 months ago. This market was not declining (exclusive neighborhood) since when do you support value with a listing or pending? I can list things at any price and find me listings to "fit" my value and pendings are in my book are just reliable as listings as most agents will not tell us the price it is pending at or the concessions that will be paid. (I had one agent acuse me of being an interested buyer and wanting that info to bid lower, people are paranoid out there) Am I crazy? or is it a form filler used to seeing pending and listings.

Thanks

 

[Mike Kennedy]

Shouldn't be surprised. Given the overall market 2007 v 2005 many major lenders are routinely requesting additional support. Suggest IF that requirement was NOT in the original order or Scope, additional billing commensurate with time involved would be appropriate. Having said that, suggest double checking to ensure that REQUIREMENT was not a STANDING requirement for all orders from that Client. If so - bite the bullet. P.S. in both mortgage and non-mortage reports I've been typically including a Contracted and /or a Listed Property in reports WHEN THEY ARE TRULY SIMILAR..... for oh bout past 5 years or so. "CLOSE THE BARN DOOR WHEN U LEAVE".

 

[jonhig]

Yeah, it's a really stupid request in my opinion. New requirements for 2008, most investors are now requiring current listings along with 3 or more closed comps no matter how good they are!!! The times they are a changin'

 

[jakeboeger]

This market was not declining (exclusive neighborhood) since when do you support value with a listing or pending?

With the current market, a listing price above what has recently closed usually means nothing except an overpriced listing. A listing price below what has recently closed means a whole lot more.

You CAN support value with active & pending listings

 

[Appraising since 1975]

The sad thing is that "Skippy" is going to find a ridiculously high listing
to support his value and ignore those model matches that are available
for $50,000 less than he just appraised the house for....(I'm in So CA)
The reason they are requesting the listings is because many appraisers have forgotton the principle of substitution.

 

[leelansford]

I got a request to add a listing or a pending to support the value on my appraisal. Why would I do that? I used comps that closed 1 to 2 months ago. This market was not declining (exclusive neighborhood) since when do you support value with a listing or pending? I can list things at any price and find me listings to "fit" my value and pendings are in my book are just reliable as listings as most agents will not tell us the price it is pending at or the concessions that will be paid. (I had one agent acuse me of being an interested buyer and wanting that info to bid lower, people are paranoid out there) Am I crazy? or is it a form filler used to seeing pending and listings.

Thanks

Each situation (appraisal) is unique. During times such as these (wide-spread concern regarding possible declining markets), it is not at all unusual for me to include an appropriate pending sale as a 4th (5th?) comp.

 

[Lawrence R.]

Self contained reports.

Tell the person that if they want to see every comp you considered and ruled out, they want a self contained report, and let them know that runs about another 100-200 dollars for the copying and scanning of all those documents.

Then you can be like me with no clients...

 

[Abzntminded]

I got a request to add a listing or a pending to support the value on my appraisal. Why would I do that? I used comps that closed 1 to 2 months ago. This market was not declining (exclusive neighborhood) since when do you support value with a listing or pending? I can list things at any price and find me listings to "fit" my value and pendings are in my book are just reliable as listings as most agents will not tell us the price it is pending at or the concessions that will be paid. (I had one agent acuse me of being an interested buyer and wanting that info to bid lower, people are paranoid out there) Am I crazy? or is it a form filler used to seeing pending and listings.

Thanks

It seems a lot of appraisers think the UWs are simply making stuff up to annoy them. UW's have their own new guidlines to follow, and this is often compounded by the investor's new guidelines. (It's their call; they're the ones actually footing the bill for the property).

What I see now is most UWs are concerned with current listings cutting the appraised value off at the knees. They want to see that you're not arguing that a property is worth more than what a similar property won't sell for currently. (In my area this has been going on for some months now, and will no doubt continue well into this year.)

Give them the listings - show them you understand what they're asking for and why. And next time, throw two listings on anyway to pre-empt this condition.

 

[Renee Borne]

our MLS for active listings have ranges. ex: $250,000 to 275,000. so when I need something to support my value can I just pick any number between that and hey it supports my value. I do put the range in when a lender asks for a listing and they freak when they see that but that is what it is listed at. that is why I hate using them, if I have good closed comps I would like a rational for me to do more work.

 

[CANative]

our MLS for active listings have ranges. ex: $250,000 to 275,000. so when I need something to support my value can I just pick any number between that and hey it supports my value. I do put the range in when a lender asks for a listing and they freak when they see that but that is what it is listed at. that is why I hate using them, if I have good closed comps I would like a rational for me to do more work.

"Extra comps to support value" is just ignorant UW jargon. They want extra comps to make them feel warm and fuzzy. Ignore the "to support value" and put in some additional market data for competing properties. I don't think an appraisal report these days is credible without this data.

Include a spreadsheet printout of all sales and all listings/pendings in the market or neighborhood. Let them see what you're looking at. I even put little checkmarks on the spreadsheet next to the sales/listings/pendings which have been presented in the sales grid.