Subject Prior Sales / Transactions - Underwriter Request

[J Grant]

well explained above post about this older sale, aka would be faster to include it and send it back to client than to keep posting about it lol

Jeez USPAP is a minimum, the back story on subject being a wreck/renovated is important, it is not about a robot thing of ratios and tax assessments. Hope you have a competent supervisor they can teach bad habits as well as good ones.

 

[timd354]

Only that the UW wants something included that is not required to be there - that the UW is essentially altering the content of the report. Not really difficult to state in the addendum that the prior sale was not included or analyzed because it did not occur within the 3 year window and that USPAP does not require analysis of sales or transactions that occur prior to 3 years - more like - that fact seems very obvious and that the UW wants to make sure its in the report anyway. I appreciate the responses - the conversation is theoretical now my supervisor is convinced. Thank you for taking the time -

Come on guy, just get over the fact that some clients would like more than just the bare minimum, especially when it involves a property that now has a much higher value than a previous sale slightly more than 3 years ago. In the amount of time you have spent bellyaching about the request here on the AF, you could have already modified your report and provided the client with professional service. It is exactly this type of attitude that results in more and more lenders and secondary market participants questioning what value they actually receive from (at least some) appraisers.

 

[J Grant]

well explained above post about this older sale being a wreck and then renovated, would be faster to include it and send it back to client than to keep posting about it lol

 

[timd354]

the borrower bought it cash from an estate and it was a wreck. The reason for the increase was market appreciation over 3 years, total interior renovation, and that it sold for less than market value at the time of the prior sale..

That took about 15 seconds to write and if it had been included in the appraisal report, you never would have received any question about it.

 

[TekJ42]

That took about 15 seconds to write and if it had been included in the appraisal report, you never would have received any question about it.

We did - I have never been asked to comment about a prior sale outside the 3 year window and it seemed strange. Comments in this thread seem to indicate otherwise. Is it ridiculous to ask questions like this? I assumed this was the place to ask and learn.

 

[TekJ42]

Come on guy, just get over the fact that some clients would like more than just the bare minimum, especially when it involves a property that now has a much higher value than a previous sale slightly more than 3 years ago. In the amount of time you have spent bellyaching about the request here on the AF, you could have already modified your report and provided the client with professional service. It is exactly this type of attitude that results in more and more lenders and secondary market participants questioning what value they actually receive from (at least some) appraisers.

Sorry we were under the impression this was the right place to ask these kinds of questions and discuss the rationale.

 

[timd354]

We did - I have never been asked to comment about a prior sale outside the 3 year window and it seemed strange. Comments in this thread seem to indicate otherwise. Is it ridiculous to ask questions like this? I assumed this was the place to ask and learn.

No, it is not ridiculous to ask questions, and I guess I should have used a little bit of a kinder tone since you are a trainee (My fault for not noticing that earlier) I apologize for the harsh tone...I have little patience for appraisers who think that doing just the bare minimum is a good excuse, but you are a trainee just learning the profession and it is natural that you may have these types of questions, so you did not deserve my ire.

Just keep in mind that you can never go wrong by doing more than the minimum and you will do well in your career....good luck to you!

 

[Terrel L. Shields]

Here, prices for residential property and vacant land in particular has risen 20-40%, especially if in good condition. I assume the UW isn't really very savvy about your property...

 

[hastalavista]

While the USPAP requries 3-years, here is what the reporting form states:



There is no "cut-off". The form provides a place to report and analyze the prior sale; last week or last decade.
This is from Fannie's selling guide, in the "Unacceptable" appraisal practices section.



No cut-off identified there.

However, here is the comment in the specific prior-sale section of the Selling Guide:



The three-year benchmark is identified.

I'm providing you with these references so you can make sense of the following:
1. I agree that if there was a significant change in the price from 3.2 (or whatever years') prior sale, the client's request is reasonable.
2. You are correct regarding the USPAP requirement.
3. Different lenders/underwriters/reviewers interpret the selling guide differently; For a fact, UWs are concerned about the "unacceptable appraisal practices" and since the instruction on that sheet is prior sale without a time-limit, their prudence may dictate to them to ask for the prior sale, period. Looking at the form by itself, the implication is to put in the prior sale.
4. I do not think the UW/lender, etc., is trying to do anything nefarious.
5. I wouldn't fight on this hill; I'd address the issue and get it off my desk.

Good luck!

 

[TekJ42]

While the USPAP requries 3-years, here is what the reporting form states:

View attachment 34585

There is no "cut-off". The form provides a place to report and analyze the prior sale; last week or last decade.
This is from Fannie's selling guide, in the "Unacceptable" appraisal practices section.

View attachment 34586

No cut-off identified there.

However, here is the comment in the specific prior-sale section of the Selling Guide:

View attachment 34587

The three-year benchmark is identified.

I'm providing you with these references so you can make sense of the following:
1. I agree that if there was a significant change in the price from 3.2 (or whatever years') prior sale, the client's request is reasonable.
2. You are correct regarding the USPAP requirement.
3. Different lenders/underwriters/reviewers interpret the selling guide differently; For a fact, UWs are concerned about the "unacceptable appraisal practices" and since the instruction on that sheet is prior sale without a time-limit, their prudence may dictate to them to ask for the prior sale, period. Looking at the form by itself, the implication is to put in the prior sale.
4. I do not think the UW/lender, etc., is trying to do anything nefarious.
5. I wouldn't fight on this hill; I'd address the issue and get it off my desk.

Good luck!

This is exactly what I was looking for. Thank You