Sales Grid Adjustment Comments

[djd09]

Columbus that have had units sell for over $500/sf.

What next to the horseshoe. Sure pick the biggest outlier to discredit when you don't know.

 

[djd09]

"suggesting that appraisers strictly adhered
to the net adjustments guideline. Fannie Mae’s concern is that the adjustments might be artificially low."

Fannie is full of innuendos.

That chart suggest the median sale price to GLA in ohio is around 80. duh. OhiO. Tell me nothing about my backyard.

 

[DWiley]

Nearly 95% of comps analyzed had net adjustments less than 15%, suggesting that appraisers strictly adhered
to the net adjustments guideline. Fannie Mae’s concern is that the adjustments might be artificially low.

https://www.fanniemae.com/content/announcement/ll1502.pdf

Page 5. Graph median price per square foot. Fannie vs appraiser.

What is fannies adjustment?

Again, they are merely providing their observations. No suggested adjustments or rates. For what its worth, I have had many admit to me that they have used artificially low adjustments in order to keep adjustment percentages down. Some have even admitted it right in the comments in their own reports. Similarly, many regularly just put the subject's value as the predominant value to avoid having to make any comment. It is a downside to having such policies. See the thread about lenders trying to manipulate CU scores. That is just another manifestation of the same type of behavior. Many seek the path of least resistance without regard to what actually should be done - and that is not just true with appraisals.

 

[Mike Kennedy]

Variances from their arbitrary adjustment "guidelines" have always been acceptable provided ample support and reasoning accompanied them. All too often many duhpraisers caved into either lender or AMC pressure and behaved like good lil puppies - well trained and dont make a "mess".

 

[Meandering]

Again, they are merely providing their observations. No suggested adjustments or rates. For what its worth, I have had many admit to me that they have used artificially low adjustments in order to keep adjustment percentages down. Some have even admitted it right in the comments in their own reports. Similarly, many regularly just put the subject's value as the predominant value to avoid having to make any comment. It is a downside to having such policies. See the thread about lenders trying to manipulate CU scores. That is just another manifestation of the same type of behavior. Many seek the path of least resistance without regard to what actually should be done - and that is not just true with appraisals.

 

[djd09]

No suggested adjustments or rates.

They suggested appraisers adjustments are low "artificially low". Based on what?

 

[djd09]

You may be right. The report I looked at had comps selling between $474/SF and $539/SF. That's certainly NOT $300/SF
Small condos in big city.

I know you and Tim are "chiefs" but you know better that this is location factor and not a GLA factor. good try

 

[DWiley]

They suggested appraisers adjustments are low "artificially low". Based on what?

Fannie has been sharing their observations on this topic at conferences across the country for at least two years now. The data they share at those meetings is more detailed than what they put in announcements, and their data does make a quite compelling case. Couple that with so many who are willing to admit to doing exactly what Fannie says they suspect they have been doing and I am not sure I understand the incredulity.

 

[Tim Hicks (Texas)]

Based on the thousands of appraisals they have reviewed. I do Fannie and Freddie reviews. They are spot on. It all depends on what the market supports. Most of the bad appraisals I have reviewed used $20 per foot when the adjustment should have been $50-70 a foot based on the market reaction for that neighborhood. Condo GLA adjustments should be higher because their is no site value. Here, site values are not dominant. So properties selling for $100-130 a foot with a low site value, the adjustment would rarely be $20 a foot, but more likely $50-75 a foot depending on what the market supports. There are too many appraisers that think the adjustments come off of some list or should be $20 a foot because that is what they adjusted in 1985. Honestly, Danny's sorry AMC sent out a bulletin one time about how to arrive at a proper GLA adjustment and I could find no argument with their logic because it was basically how I arrived at my GLA adjustments. Do all your other adjustments first, then see what your GLA adjustment should be to arrive at the best adjusted range of value. It might surprise you.

 

[Tim Hicks (Texas)]

I know you and Tim are "chiefs" but you know better that this is location factor and not a GLA factor. good try

Do some actual field reviews. It is the best learning experience you could ever have as an appraiser. GLA adjustments are not derived from some list, they are set by the actual market. I am not a chief, I just have many years of experience and hundreds of field reviews for Fannie and Freddie under my belt. $20 a foot could be correct for some markets, but it simply is not correct for most markets.