Stip to add specific comp to grid or a different comp within 1 mile of the subject

[RACO]

Need some advice here please.

A lender client who sends me the majority of my assignments sent a stip to add specific comp to grid or a different comp within 1 mile of the subject. To me this seems to "limit the scope of work to such a degree that the assignment results are not credible in the context of the intended use." It also confuses me because the completed assignment resulted in the opinion of value being above contract price, albeit 7k above, and the comp they want me to add would bring the opinion of value well under contract price. The comps I used were 0.8 miles, 1.6 miles, 2miles and 3 miles from the subject and were extremely similar substitutes which also bracketed GLA, adjusted sales and overall adjustment percentages. In short they were the best comps available.

My first inclination was to tell them to stop trying to influence assignment results and pay me for what I felt was a job well done. My problem is that I don't want to "bite the hand that feeds me" and it could be that they have legitimate concerns about surrounding subdivision values that I did not find in my research. Before I get blacklisted by my best client by refusing the stip and telling them that I think adding any other comps from a 1 mile radius would produce misleading assignment results, I wanted to get some other perspectives. Am I making too big a deal out of this or thinking about it wrong? How would you handle or have you handled situations like this? Thanks

 

[Terrel L. Shields]

Grid it, find the reason why it is below the rest of the indicators, try to adjust if anything is found, and give it zero weight regardless. Keep all the existing comps in the grids.

 

[J Grant]

Need some advice here please.

A lender client who sends me the majority of my assignments sent a stip to add specific comp to grid or a different comp within 1 mile of the subject. To me this seems to "limit the scope of work to such a degree that the assignment results are not credible in the context of the intended use." It also confuses me because the completed assignment resulted in the opinion of value being above contract price, albeit 7k above, and the comp they want me to add would bring the opinion of value well under contract price. The comps I used were 0.8 miles, 1.6 miles, 2miles and 3 miles from the subject and were extremely similar substitutes which also bracketed GLA, adjusted sales and overall adjustment percentages. In short they were the best comps available.

My first inclination was to tell them to stop trying to influence assignment results and pay me for what I felt was a job well done. My problem is that I don't want to "bite the hand that feeds me" and it could be that they have legitimate concerns about surrounding subdivision values that I did not find in my research. Before I get blacklisted by my best client by refusing the stip and telling them that I think adding any other comps from a 1 mile radius would produce misleading assignment results, I wanted to get some other perspectives. Am I making too big a deal out of this or thinking about it wrong? How would you handle or have you handled situations like this? Thanks

Why didn't you add that comp the client identified, which was closer by? Why are your comps further away if there were closer sales similar to the subject that occurred? ( if that is the case ) They may feel you cherry-picked the comps to make the value come in a no-no for a good client. Avoiding a similar, nearby closed sale that does not support a CS price is not a reason to exclude it ( typically). Was that comp the client identified similar to your subject?

Sometimes a sale such as that one comp might sell higher or lower for certain reasons - or the client is questioning if the subject is over valued if there is a pattern of lower prices inc closed location similar sales...?

 

[Terrel L. Shields]

if there were closer sales similar to the subject that occurred?

Even if the comp is not that similar, I'd want to mention any sale between the ones I used and why I did not use that sale.

 

[RACO]

Why didn't you add that comp the client identified, which was closer by? Why are your comps further away if there were closer sales similar to the subject that occurred? ( if that is the case ) They may feel you cherry-picked the comps to make the value come in a no-no for a good client. Avoiding a similar, nearby closed sale that does not support a CS price is not a reason to exclude it ( typically). Was that comp the client identified similar to your subject?

Sometimes a sale such as that one comp might sell higher or lower for certain reasons - or the client is questioning if the subject is over valued if there is a pattern of lower prices inc closed location similar sales...?

The subject is a 2 story, the "comp" they want me to grid is a bi-level with 30% less GLA than the subject and other differences. I could swear a realtor is writing these stips. All of the comps within 1 mile that I didn't grid are inferior to the 4 I did grid. And yes, it seems like they are fishing for a lower value, but they won't like the result if I grid the inferior comps within 1 mile.

 

[RACO]

Grid it, find the reason why it is below the rest of the indicators, try to adjust if anything is found, and give it zero weight regardless. Keep all the existing comps in the grids.

Thanks, I think that's probably the only way to resolve this professionally but they won't appreciate when I assign no value. There is a comp I may be able to use, I just don't think adding a 5th comp that is inferior to the other 4 will produce a more credible appraisal

 

[Dublin ohio]

The subject is a 2 story, the "comp" they want me to grid is a bi-level with 30% less GLA than the subject and other differences

Is that above grade GLA or are you including the lower level of the Bi-Level. Regardless the request is pure bs. Completely different style and functional utility. In my book not even remotely comparable. Probably inferior overall quality if it is like typical Bi-Levels in my area.

 

[Trihard]

Put the comp in and give it no weight. Move on to the next one. Remember this usually will come from an underwriter who thinks they are hot stuff and know your market better even though they are 1,000 miles away.

 

[RACO]

Is that above grade GLA or are you including the lower level of the Bi-Level. Regardless the request is pure bs. Completely different style and functional utility. In my book not even remotely comparable. Probably inferior overall quality if it is like typical Bi-Levels in my area.

The MLS says 2520 sq ft but a 2 second study of the auditor's sketch shows only 1680 of it is above grade. I've decided to take the advice given here and grid it and probably assign it no weight or possibly just let the chips fall where they may and let the net/gross adjustments tell the story of how ignorant this person is. Thanks everyone

 

[Dublin ohio]

The MLS says 2520 sq ft but a 2 second study of the auditor's sketch shows only 1680 of it is above grade. I've decided to take the advice given here and grid it and probably assign it no weight or possibly just let the chips fall where they may and let the net/gross adjustments tell the story of how ignorant this person is. Thanks everyone

It was their request. Just state that is why you are including it. Give it minimal if any weight and point out every reason why it is not truly comparable. Put it on them. They asked for it.