Sales Grid Adjustment Comments

[J Grant]

I am not sure of which words you are referring to specifically...(or what your comment about those words not meaning what I think they mean is supposed to convey)

 

[Tim Hicks (Texas)]

I'm sure post 159 includes everyone except TimD, JG, and Tim Hicks.

Yes, I am sure that is how you interpret things. Keep your head in the sand and continue to make enflaming statements as you nothing else better to do.

 

[Artemis Fowl]

I am not sure of which words you are referring to specifically...(or what your comment about those words not meaning what I think they mean is supposed to convey)

exactly...you got it

 

[Tim Hicks (Texas)]

When you are valuing property with a Positive Economic Model then it cannot predict a future value-it is here, now, today and thus myopic; and, since a bubble has a life of its own, property did not have to be over-valued (pushed by the appraiser) to support high valuations when you had Realtors pushing value, bankers pressuring for value, sales concealing concessions, etc., and therefore, I would say the appraiser was the least of the problem. When the sale price includes a Hummer or world cruise, or the builder paying the first six months of your mortgage, and none of that shows up on the MLS...it's hard to find negatives.

We still have that system. We as appraisers cannot see the forest for all the trees. We will follow the market over the cliff edge because we are not applying the Normative Economic Model... and won't ever be applying it. All appraiser ever said was that this house would bring this much on this day and most times they were right. None of us said this house SHOULD bring this amount and anything more is above the trend line therefore, we are in a bubble until the market decides to revert to the mean. And the bigger the bubble, the reaction is to over-compensate and thus we should then say the value has fell below its mean and is unnecessarily low. That's why with "markets" going up at 5% annually, some REO sales jumped by 40% instead. The REO was undervalued.

It only takes a few bad apples to spoil the whole barrel, Terrel. Not all appraisers helped contribute to the mortgage mess, but a large amount did. Again, if you saw the work product submitted in some appraisal reports, you would understand how some appraisers helped contribute to the problem. Even with Dodd-Frank. Even with appraiser independence, there are many appraisers out there that have the "need to hit any sales price" or "hit any value needed" or "ignore physical or external influences on a property" to prove their worth to their clients. If we all just did our jobs as designed, it would never be a problem. I really don't know why it just can't be done honesty by everybody.

 

[djd09]

Some think Frank or Dodd or fannie will fix it. They are just Foxes in the hen house.

 

[Terrel L. Shields]

Again, if you saw the work product submitted in some appraisal reports, you would understand

I did see crappy appraisals but they still weren't what caused the crisis. Banks pushed for market share, and there was nothing any appraiser - good, bad, indifferent - could have done to stop that process. Once a bubble is created it has to deflate - slowly or rapidly...and we got a rapid deflation. This is not about valuation. This is about human behavior. There is a cycle to a bubble. And once speculation and easy credit come to bear no appraiser or regulator is going to stop the crisis. It will run its full course.

 

[J Grant]

NOBODY is arguing that appraisers CAUSED the crisis. What they /we (who have reviewed and seen the reports, ) are saying is a segment of appraisers who pushed value contributed to the rapid acceleration of prices which then had to correct with the commensurate crash. Had these appraisers said NO to Agent/ Broker pressure , and not made magic numbers for multiple flip sale prices to increase ridiculous amounts within months, the price rise in the bubble would have been more moderate.

 

[djd09]

And if the Lender did not accept the pushed appraisals those transactions would never happened. Talk about head in the sand.

Oh but wait there is more. Not only did they accept them they then decided that the non pushers should be regulated by them. How conceited.

 

[J Grant]

And if the Lender did not accept the pushed appraisals those transactions would never happened. Talk about head in the sand.

Answer this;
WHO DID THE PUSHED APPRAISALS THE LENDER ACCEPTED?
A) Santa Claus
B) Appraisers

Oh but wait there is more. Not only did they accept them they then decided that the non pushers should be regulated by them. How conceited.

The last is more of the same...ducking appraiser responsibility by talking about the (worse) actions of lenders. I am not responsible for stealing $1,000, because look, the other guy stole $100,000.

 

[Tom4value]

As you can see, everyone has a different opinion. All are correct. Why? Because that is what they have done and they are still appraising! I have one personal guide I generally use. Every adjustment above the GLA count is explained. That is NOT set in stone. I look at the grid. Anything that is not 100% obvious, I explain. I have also found that across the board adjustments always need a comment.