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

[Tom D]

i agree with you jgrant. but, i don't think the lender is asking them to lower the value. we haven't seen the report, although it seems perfectly good to me. what i'm saying is that you have to address that question with more than a verbal discussion. but how you then address it is your business decision. they said it was a good client. haven't seen the report's CU score, but somehow there is a lender worry, than can easily be answered. on saying that a lower value is being suggested can be a bad guess. sometimes not being able to talk to the person directly makes it more complicated for your reply.
you know the old days, when talking to someone clarified the concern easily. in this case they want something in the report to cover that question.

 

[sputnam]

Yeah, your client is feeling pressure from somebody. No reason not to say okay.

Many clients would tell you what is going on.

This is their best client.

Again, if at all possible, do not change your opinion of value. Your client is not issuing an ROV.If

If the Client request would require you to violate USPAP or otherwise act unethically then, you tell them 'Sorry. I can't do that.' If it's a matter of them annoying you or causing you to do extra work then, it's a business decision. If you want to keep the client, you do it. If you don't care, you might do it and raise your fees to that client. If you want them to never send you another assignment, you refuse.

 

[Mark K]

Am I making too big a deal out of this or thinking about it wrong?

Yes.

How would you handle or have you handled situations like this? Thanks

I'd grid the sale/comp, explain, adjust if warranted and move on. It might be a bit irritating but it's called customer/client service. Not worth fighting over. Certainly not worth losing a client over... unless this client has a habit of being a PITA and you WANT to get rid of them.

Haven't read all the replies but it's easy to guess that they run the gamut from "Nike...(just do it)" to..........."Never, we're professionals, we make the calls and we're never wrong, the client can take a long walk off a short pier". In this instance I lean more to the Nike approach.

 

[RACO]

Thanks for all the replies. I went on vacation and forgot about this post but it seems to have taken on a life of it's own in my absence. And thanks Dublin for defending me while I was gone. Your replies were pretty much on the money. Since they insisted I grid a 5th comp (it's their report so as long as it doesn't produce misleading results fine,) I ended up gridding the sale they specified since the other sales within 1 mile were inferior also, and they seemed to think that specific sale was good so I thought it would be informative to show them the quality of their good "comp". The adjustment percentages were laughable and I assigned it no weight and detailed why in the revision addendum.

For those of you who were wondering about AIR, my due diligence, documentation and quality of comps etc. I do my best on every appraisal and document and explain everything thoroughly. I spend WAY too long making sure I have the very best comps and IMHO I gave them the best 4 comps in the neighborhood initially. When they asked me to grid a specific sale or another sale within 1 mile, yes I did feel like I was being influenced and coerced because I had already considered 2 other sales before they sent these new ones, and it seemed like they were trying to achieve a specific value or result. I wasn't being stubborn, I was just of the opinion that gridding any of the inferior sales they kept sending me would produce an inferior report to the one I initially submitted. Thanks again everyone for all the advice and different perspectives, it's always appreciated.

 

[Fernando]

I didn't notice your thread because I was on vacation. I didn't read other posts and saw your recent post.
I would have suggested you just add the 5th comp and do the adjustment. Since I do my due diligence, I doubt that 5th comp would be as good as the comps I already had in the report.
After the large adjustments, reader can clearly see why it's not a good comp.
Make your comments why it's not used and that should be the end of it.

 

[Tom D]

from a recent fannie letter

The best and most appropriate comparable sales are not always the most recent sales. It may be appropriate for the appraiser to use a 9-month-oldsale with a time adjustment rather than a 1-monthold sale that requires multiple adjustments for other differences. the same response for a sale being closer.

A sale with multiple adjustments isn't necessarily a comp. this is fannie answer to you.

 

[djd09]

from a recent fannie letter

The best and most appropriate comparable sales are not always the most recent sales. It may be appropriate for the appraiser to use a 9-month-oldsale with a time adjustment rather than a 1-monthold sale that requires multiple adjustments for other differences. the same response for a sale being closer.

A sale with multiple adjustments isn't necessarily a comp. this is fannie answer to you.

fannie pours alot of kool aid...

 

[Terrel L. Shields]

from a recent fannie letter

The best and most appropriate comparable sales are not always the most recent sales.

I am working on a report of 40 acres of land. I have several similar 40 acre parcels but the 50 acre sale next door and joining the property has an existing well and corrals but is a sale from over 1 year ago. The subject has a well and a shed plus a storm shelter. Used to have a manf. home on it, no more. So what sale is the best? In my book, the one next door despite being the oldest sale. Same topography, composition, same road, and similar site improvements.

 

[J Grant]

from a recent fannie letter

The best and most appropriate comparable sales are not always the most recent sales. It may be appropriate for the appraiser to use a 9-month-oldsale with a time adjustment rather than a 1-monthold sale that requires multiple adjustments for other differences. the same response for a sale being closer.

A sale with multiple adjustments isn't necessarily a comp. this is fannie answer to you.

It's not just a fannie answer. It happens to be true , that an older sale needing fewer physical and location adjustments is often the better comp than a more recent, less similar sale. Time/market condition adjustments are easy to make and prove, so there is no excuse not to use a good sale just because it is dated - beyond 2 years, of course, gets a bit old, but in some cases, it is needed for a very unique/niche property.

 

[Alsie35]

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.

THIS. THIS. THIS. And again, THIS.

Be wise in handling your client and do not read "evil intent" into what is almost certainly just a "we want to feel a little more comfortable with this" request. They have to justify the value as well, and maybe they are just responding to something that their AVM or Fannie software "scrub" spit out as a suggestion.

Grid it. Explain it. If it does not change your opinion of value, DO NOT CHANGE IT. All you are doing is CYA by including a comp bracketing the bottom of your adjusted sale range - and preventing future questions along the lines of "why didn't you use this comp?"