Sales Grid Adjustment Comments

[Meandering]

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

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[Tim Hicks (Texas)]

I don't always agree with Fannie Mae, but they do make an effort to set reasonable guidelines. The problem with guidelines is that lenders and AMCs think they should not be exceeded and run with it. That is just not the case in an imperfect real estate market. I have already stated, that my own experience in review appraisal reports supports their claims that appraisers make too low or no adjustments to avoid exceeding guidelines to make their reports fly through underwriting. It is a fact. It has been done for many years and is still being done. Fannie Mae never states what an adjustment should be. It states adjustments should be made for proper market reaction. Every market is different. A in ground pool adjustment in the north may be next to nothing. Here a pool could be worth $5,000-50,000 in contributory value based on the specific market. An 80 year old home in fair condition could require a $20 per foot GLA adjustment in one neighborhood and a $40 per foot GLA adjustment in a better neighborhood. It is all relative to each individual market, but they have the data to see most markets really well.

For those that think Fannie Mae is the problem, they are being short sighted and rather narrow minded on the subject. The sheer volume of appraisals they see is a pretty giant data base. When you deal in the volume they do, your perspective is quite different than an individual appraiser doing their yearly workload in their tiny market. You perception is a much smaller cross section and is really just your own world. Fannie pointing out the shortcomings of the low quality appraisals they get to see is simply a tool any company would utilize to improve their product.

Honestly, I think performing regular field reviews should be a requirement of licensing. It would open the eyes of many appraisers.

 

[Tim Hicks (Texas)]

If you were exceeding the suggested guidelines it meant that you were not picking the right comparable sales or you have an unique property. So their 95% assessment should be correct and proves the appraisers are doing their job.

I will just man up to the fact the fannie needs to blame others for their shortcomings. True leaders do not point fingers.

Do you live and work in cookie cutter world where you have 50 exact model match sales every 90 days? There is so much diversity in the real estate market that it really is not that hard to exceed guidelines especially if you work in rural markets. You will not always have three sales with a pool and what if a pool adjustment causes the net or gross adjustments to exceed 15/25%? What if you have a new home and the only new home sale is on a smaller lot requiring an adjustment that exceeds guidelines, but that sale supports your age adjustments for similar size homes on similar size lots. Does every rural property have the same number of barns, workshops, etc.? What about accessory units? Are they always the same size?

And no, appraisers are not always doing their job. How do you explain the disciplinary actions in every state? Just think how many slip through the cracks. You would know this if you actually saw the case studies.

 

[Meandering]

And no, appraisers are not always doing their job. How do you explain the disciplinary actions in every state? Just think how many slip through the cracks. You would know this if you actually saw the case studies.

Just look at some of the postings on the forum over the years.

Of course the condo dock is residential if the house boat is tied to it. Just report it on a 1004 and we're good.

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[timd354]

Just look at some of the postings on the forum over the years.

Of course the condo dock is residential if the house boat is tied to it. Just report it on a 1004 and we're good.

.

How does a quote from tim Hicks get converted into a quote from me?

 

[Meandering]

How does a quote from tim Hicks get converted into a quote from me?

That's an excellent question.

HellifIknow.

 

[Meandering]

That corrects it.

But I have no clue how that happened.

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[residentialguy]

How does a quote from tim Hicks get converted into a quote from me?

It's the lurkers from Fannie Mae conspiring against you!

 

[Tim Hicks (Texas)]

My point is that anybody that thinks appraisers did not have a hand any mortgage mess over the years, then they have their heads buried in the sand.

 

[Tim Hicks (Texas)]

What about the separate line adjustments? In ground pool?

Did they ever think that the appraisers were selecting the correct comparable sales and the guidelines wouldn't be exceeded? Fannie should retract and apologize to appraisers.

Apologize to appraisers? They don't name specific appraisers. They don't say all appraisers. They have plenty of data to back up their claims. What data do you have to contradict their claims? Maybe the apology should come from you for making unsupported claims?