Meandering
Elite Member
- Joined
- Feb 26, 2006
- Professional Status
- Real Estate Agent or Broker
- State
- Pennsylvania
Fannie did not keep appraiser's adjustments low to stay within the 15%/25% guidelines even if that meant the adjustments did not reflect market reaction. Appraisers did that on their own and/or were encouraged or pressured by clueless lenders and underwriters who did not understand that the 15%/25% adjustment guidelines were not meant to be a hard guideline but only required the appraiser to provide an explanation. Please do not try to pretend that did not happen on a regular and ongoing basis with many appraisers.
The Big Book of Appraisal Adjustments should never have existed.
So true,
Yet the worlds of appraising, lending and sales allowed it to continue for 20+ years.
But really, those graphs would have been more meaningful if they addressed the opined market value against comparables used by appraisers as a % difference to determine if adjustments were made to that most minimized the economic differences between the subject's and the comps, instead of introducing sale prices and GLA as stand alone indications
.