Revision Requests -having To Explain Peer Appraiser's Data In My Reports?

[Tim Hicks (Texas)]

It is true that there are still many appraisers out there that only adjusted $20-25 per foot when a more appropriate adjustment is double or triple that. The market sets the adjustment, not the appraiser.

 

[timd354]

Perhaps if public schools were better at teaching math, sellers and agents would price them with $27.50 per square foot for differences in GLA.

You are going to let them in on the dirty little secret that adjustments are used to minimize the differences between the subject and the comparables,

They are not stand alone market values for specific amenities that holds true against all comparables when compared to every subject.

If $25 a square minimizes those differences from Peoria to Manhattan, well, it just says a large percentage of sellers, agents and buyers only find $25 additional utility in additional GLA when all other aspects are comparable to other properties in their market place.

Would be a real shame if FM and friends actually understood appraising.

We don't make values, we just report them.

..

The problem is that some appraisers do simply make up the values based on some list there mentor gave them years ago and don't do any market analysis. It is absurd to think that in most cases an actual market derived GLA adjustment for a $100,000 home in Peoria would be remotely similar to an actual market GLA adjustment for a $1,500,000 condo in in Manhattan.

 

[Eli]

The problem is that some appraisers do simply make up the values based on some list there mentor gave them years ago and don't do any market analysis. It is absurd to think that in most cases an actual market derived GLA adjustment for a $100,000 home in Peoria would be remotely similar to an actual market GLA adjustment for a $1,500,000 condo in in Manhattan.

Can you give me some names so I can pass them on? I'm getting old and onery sometimes. I want them to get help though.

 

[ucbruin]

The problem is that some appraisers do simply make up the values based on some list there mentor gave them years ago and don't do any market analysis. It is absurd to think that in most cases an actual market derived GLA adjustment for a $100,000 home in Peoria would be remotely similar to an actual market GLA adjustment for a $1,500,000 condo in in Manhattan.

Question for those who work directly for AMCs/Lenders/Insurers/etc......

We "know" there exists the Book of Adjustments/Studies/Collections of data/yada yada yada....
And we "know" the vast, vast, vast majority of appraisers have "developed" a "base" value assigned to each physical characteristics (let's not kid ourselves)....

The "base" value is tweaked depending on "sensitivity" for a physical characteristic....

The question for those listed above....

Don't you provide your reviewers some type of "Book" so they know what to look for in a report? Or are they working independently with no company guidelines?
How else would your reviewers "know" what all appraisers seem to know (no matter where in the US they live and appraise; or what year they started their appraisal career) we adjust GLA starting at 100sf difference?

Or does your company periodically perform "paired sales" analysis or any type of "analysis" to determine "correct" adjustment ranges for every physical characteristic?????

 

[Meandering]

The problem is that some appraisers do simply make up the values based on some list there mentor gave them years ago and don't do any market analysis. It is absurd to think that in most cases an actual market derived GLA adjustment for a $100,000 home in Peoria would be remotely similar to an actual market GLA adjustment for a $1,500,000 condo in in Manhattan.

And while I'll agree with you that such a thing does exist, and that many were not correctly trained, then incorrectly trained more.....

It is very disingenuous of those who are supposed to understand the appraisal process to,

take data out of context, without comment as to the applicability and sufficiency of the data in its original and intended context,

and then try to make a federal case out of the data being compared to each other within a vacuum of why it exists that way in the first place.

Totally propaganda.

I've heard better stories from a bb gun wielding 12 year old who was standing guard least the bunny rabbit that bite the car tires came back, and he could defend the remaining inflated car tire from that bunny rabbit.

.

 

[Adios]

It is true that there are still many appraisers out there that only adjusted $20-25 per foot when a more appropriate adjustment is double or triple that. The market sets the adjustment, not the appraiser.

Of course it does. In DC for new construction when the appraiser uses $20 a foot for adjustments you know the appraiser is not competent. I was in a regulator office today. And the same appraiser using a same comp in different reports has the same property somethings as 3 BR and sometimes 4 BR. Sometimes 2000 sq ft, sometimes 3000 sq ft. It happens.

 

[Meandering]

Of course it does. In DC for new construction when the appraiser uses $20 a foot for adjustments you know the appraiser is not competent. I was in a regulator office today. And the same appraiser using a same comp in different reports has the same property somethings as 3 BR and sometimes 4 BR. Sometimes 2000 sq ft, sometimes 3000 sq ft. It happens.

And CU did not catch it???

How did that happen??

Or maybe it did catch it, so.......you were there to witness the end of this appraiser in the profession??

Why are regulators disclosing anything to you??

Were you the client of any of those reports??

.

 

[Eli]

Of course it does. In DC for new construction when the appraiser uses $20 a foot for adjustments you know the appraiser is not competent. I was in a regulator office today. And the same appraiser using a same comp in different reports has the same property somethings as 3 BR and sometimes 4 BR. Sometimes 2000 sq ft, sometimes 3000 sq ft. It happens.

That don't necessarily tell me anything. What is the course of action? I would hope a standard 3 review is in the mix.

 

[Adios]

And CU did not catch it???

How did that happen??

Or maybe it did catch it, so.......you were there to witness the end of this appraiser in the profession??

Why are regulators disclosing anything to you??

Were you the client of any of those reports??

.

Yes CU did catch it.

We were discussing reform measures needed.

 

[jay trotta]

Reform ?? Please elaborate