Revision denied... Appraiser can explain basic principal of supply & demand for an additional fee

[Zoe]

This one company makes up about 7% of my work and takes up about 15% of my time.
My QC response to stupid questions.
2.) Shortage is checked for Demand/Supply in the neighborhood section. Please comment on the cause of the under supply and comment if there is any impact on marketability.

Request denied. Comments exist in current report sufficient for the intended user, an industry professional, to readily understand and interpret the report. If the client requires further explanation the appraiser can furnish a narrative addendum, delving into the basic principals of supply and demand and their application to the current real estate market in the subject area for an additional fee.


~~~~~~~
Some boiler plate I've saved for the same client.
An explanation of how adjustments work and how the amounts were derived is contained in the summary of sales comparison approach below the sales grid

To further summarize as requested above exceeds level of detail required to produce credible results easily interpreted by the intended users of this report who are industry professional accustomed to reading and interpreting appraisal reports. Were the intended user a laymen a more extensive summarization would be required to fulfill the scope of work.
If the user(s) requires more explanation than that which has been provided, appraiser will furnish a narrative appraisal addendum to this report for an additional fee reflecting fair compensation for the requested expanded scope of work.

I would not have a problem with revised report and new signature date on this request. An email might work to reviewer. Reviewer may not even have a clue.

 

[Zoe]

VA does tidewater on purchase where everything is out in open to veteran and buyer and seller.

I don't except crap on tidewater.

But on refi, I would have no problem either way.

If you have a problem with it, do ROV to lender. I will handle it.

 

[Zoe]

I have may changed appraised value once or twice on ROV. I have no problem with ROV.

Don't send me under supply comment on appraisal because it is already in appraisal report. Please section............

 

[Digger88]

This one company makes up about 7% of my work and takes up about 15% of my time.
My QC response to stupid questions.
2.) Shortage is checked for Demand/Supply in the neighborhood section. Please comment on the cause of the under supply and comment if there is any impact on marketability.

Request denied. Comments exist in current report sufficient for the intended user, an industry professional, to readily understand and interpret the report. If the client requires further explanation the appraiser can furnish a narrative addendum, delving into the basic principals of supply and demand and their application to the current real estate market in the subject area for an additional fee.


~~~~~~~
Some boiler plate I've saved for the same client.
An explanation of how adjustments work and how the amounts were derived is contained in the summary of sales comparison approach below the sales grid

To further summarize as requested above exceeds level of detail required to produce credible results easily interpreted by the intended users of this report who are industry professional accustomed to reading and interpreting appraisal reports. Were the intended user a laymen a more extensive summarization would be required to fulfill the scope of work.
If the user(s) requires more explanation than that which has been provided, appraiser will furnish a narrative appraisal addendum to this report for an additional fee reflecting fair compensation for the requested expanded scope of work.

100% justified.

UW's are expected to have a minimum understanding of what they're reading a phone monkey is/does not. It's not the OP's job to teach them how to check a box I've ditched quite a few good paying lenders who use azz AMC's and let them know exactly why. Almost universally they agree they get a lot of complaints but are powerless to do anything about it. Getting rid of dead weight is so satisfying

 

[chad hampton]

Wouldn’t the cause of the undersupply be there’s not enough homes on the market ?

This profession is a mess

 

[NC Appraising]

Every lender is different and may ask for things that they deem necessary. OR the software that they are using flags it.

That being said, typically fannie only wants additional comments when there is a over supply.

https://singlefamily.fanniemae.com/media/47596/display

The appraiser’s analysis of a property must take into consideration all factors that affect value. Because Fannie
Mae purchases loans in all markets, this is particularly important for neighborhoods experiencing significant
fluctuations in property values including sub-markets for particular types of housing within the neighborhood.
Therefore, lenders must confirm the appraiser analyzes listings and contract sales as well as closed or settled Published June 3, 2026
557
sales, and uses the most recent and similar sales available as part of the sales comparison approach, with
particular attention to sales or financing concessions in neighborhoods that are experiencing either declining
property values, an over-supply of properties, or marketing times over six months. The appraiser must provide
their conclusions for the reasons a neighborhood is experiencing declining property values, an over-supply of
properties, or marketing times over six months.

When completing the One-Unit Housing Trends portion of the Neighborhood section of the appraisal report, the
trends must be reflective of those properties deemed to be competitive to the property being appraised. If the
neighborhood contains properties that are truly competitive (that is, market participants make no distinction
between the properties), then all the properties within the neighborhood would be reflected in the One-Unit
Housing Trends section. The appraiser's analysis of the property value housing trend section (increasing, stable,
declining) must include factual data from information sources such as, but not limited to, market data, home
price indices, multiple listing services, public records, and/or models. The trend indicated in the appraisal report
must reflect the overall movement of the market based on a minimum of 12 months of data.

 

[glenn walker]

I

If I were the client, I would not use you again - not that it matters if they are 7% of your work.
That is lazy to refuse them a simple explanation beyond boilerplate.

Why is there a shortage??? Is the area in demand with few properties coming on the market? (examp;le ) There is a reason why you wrote that, or there should be a reason.

I would place you on our do not use list and send no future orders.

 

[George Hatch]

You are not writing the report for a reviewer. You're writing it for the reader. The reviewer apparently thinks this question will come up at the reader level. and that if they don't clear the question up now during review then they'll have to clear it up later when their client comes back at them. You'll typically see questions like this if the lender is seeing stable or declining pricing trends in their book of work. They're trying to figure out their exposure. If other areas they do business in are showing price stability or decline but this area is doing something different that could raise a question. If the neighborhood trend in the macro is showing increases but your comps at the micro are not then that could raise the question.

How you handle a high-maintenance client can become a business decision. Telling them "no" is one solution but that decision might have an effect on your relationship with that client. I've dropped high maintenance clients before, but only when it didn't cost me to do it.

I always keep track of pricing and exposure times and relate to the indicated supply/demand. Personally, I track those for the neighborhood going back several years. DOMs under 30 days means something very different from DOMs @4 months.

Trying to get into "why" buyers and sellers are doing something is arguably beyond the scope of an appraisal aimed at "what' they're doing. After a certain point you're just guessing. Sometimes those guesses will be wrong.

 

[glenn walker]

A two line explanation would have sufficed and the UW or reviewer would have checked the box and closed the file. A hill not worth dying on or losing a customer.

 

[George Hatch]

Not saying it's the case in this report, but in general...
It's fairly common for a report to appear to be internally inconsistent. Showing increase or decrease in the neighborhood but no market conditions adjustments (or other form of reconciliation) in the Sales Comparison. There might be a good reason for that apparent disconnect and a reviewer might understand that reason without any explanation, but when the report is being written for a lender then THEY might not understand the situation beyond what is explained in the report.

It's not enough to be right on the SR1 side and to assume that getting to the number is all that matters. The adequacy of the SR2 report is also a significant part of the assignment.