The word "Average" in the improvements section - possible bias?

[TerryRohrer]

Clearly, the GSEs can not tell you what is right, they can only tell you what is wrong. That keeps their options open to screw anyone and everyone (lender, appraiser, investor) as needed.

 

[Mejappz]

if i ask you what is the average appraiser...would you understand that means old white and male

Let's contextualize this thread so the stupid users can understand. My God this Country continues to fall further into the abyss with each passing day.

I'm just an ordinary average guy
My friends all are boring
And so am I
We're just ordinary average guys
We all lead ordinary average lives
With average kids
And average wives
We all go bowling at the bowling lanes
Drink a few beers
Bowl a few frames
We're just ordinary average guys
Ordinary average guys
And every Saturday we work in the yard
Pick up the dog doo
Hope that it's hard (woof woof)
Take out the garbage and clean out the garage
My friend's got a Chrysler
I've got a Dodge
We're just ordinary average guys
Ordinary average guys

 

[RCA]

You keep saying they are not subjective - so then give us the objective definition of "average" that is universally used by appraisers. You cannot do that because as this very thread has well illustrated different appraisers use that word to mean different things.

You asked - How are we supposed to make narrative comments about a sales Comparison without using words to compare the properties or areas? I have already answered that question multiple times. All that is necessary is to provide explanation of how you are using that term.

If it were me, I would simply include definitions of those terms in my report, and then rate according to those definitions. Given that you think good, average, fair, etc. are such well understood terms, it should not be difficult to provide definitions.

Oh my God: What happened to your insistence on absolute standards.

The GSE guidelines are a mess. C1-C6, Q1-Q6 are supposed to be absolute standards. Other things can be subjective.

You haven't connected the dots. It doesn't make sense in so many ways.

You have't conected the dots. You really don't know WTF you are talking about.

I HAVE connected the dots. I am marketed oriented and relativistic, yet constrained by net sale prices. Everythign in my world is connected and constrained by mathematical proofs and protocoled workflow.

All Freddie Mac and Fannie Mae have is a gargantuan stinking mess.

 

[Fernando]

....the little liberals cannot even figure out what is man and what is a woman...their little brain must be spinning on the word average

Me having a science major background, a man has XY chromosome and a woman has XX chromosome.

 

[Fernando]

Let's contextualize this thread so the stupid users can understand. My God this Country continues to fall further into the abyss with each passing day.

I'm just an ordinary average guy
My friends all are boring
And so am I
We're just ordinary average guys
We all lead ordinary average lives
With average kids
And average wives
We all go bowling at the bowling lanes
Drink a few beers
Bowl a few frames
We're just ordinary average guys
Ordinary average guys
And every Saturday we work in the yard
Pick up the dog doo
Hope that it's hard (woof woof)
Take out the garbage and clean out the garage
My friend's got a Chrysler
I've got a Dodge
We're just ordinary average guys
Ordinary average guys

Then I'm not average.

 

[DWiley]

The GSE guidelines are a mess. C1-C6, Q1-Q6 are supposed to be absolute standards. Other things can be subjective.

Yes, that is correct, as explained in the UAD materials. However, there are also other sections of the Selling Guide that lenders must also adhere to, and one of those is 5603.4, which specifically identifies as unacceptable appraisal practice:

Use of unsupported or subjective terms or statements to assess or rate, such as, but not limited to, “high,” “low,” “good,” “bad,” “fair,” “poor,” “strong,” “weak,” “rapid,” “slow,” “fast” or “average” without providing a foundation for analysis and contextual information

Does that connect the dots for you, or can we all just expect another ad hominem laced rant?

 

[mp2277]

My software just came back with the word "Average" as a possibly "biased" word for the first time. It has a link that sends you to Freddies page which says "Use of unsupported or subjective terms or statements to assess or rate, such as, but not limited to, “high,” “low,” “good,” “bad,” “fair,” “poor,” “strong,” “weak,” “rapid,” “slow,” “fast” or “average” without providing a foundation for analysis and contextual information".

We have been conditioned for years to provide the condition of the dwelling in the improvements section for Exterior and Interior, when it says Foundation Walls, and you put in that section "Concrete/Good", "Concrete/New", "Concrete/Average", etc. How do they expect us to describe this and not use the word "Average", "Good", "Fair", "Poor", "Excellent" especially when we are using things like M&S that have it throughout the entire Cost Handbook? They want to know the rating we used or they can't recreate the Cost Approach, if they require it, or do a Cost to Cure. Do we start using words like mediocre? But then, there is no rating for mediocre. This whole thing to me is a joke and stifles us on everything, especially when things like "Rapid", "Stable", and "Slow" are used to describe the growing market with new construction. Maybe those words should be changed to "Speedy", "Durable", and "Lackadaisical". So, is it providing "Context" when we are describing the condition of the dwelling, or is it biased?

Concrete/C3

 

[J Grant]

From a lender perspective, the sole purpose of the appraisal report is to assist in risk management. The actual condition of a home certainly affects the default costs if the lender/investor ends up owning the home. So, yeah, communicating the actual condition is important to users, even if the value is credible.

If an appraisers says that a home in poor condition is in average condition, simply because it is in the same condition as the comps, then that is effectively negating an important data point in the risk decision.

Imo that is misleading, and a lender should not be using the appraiser.
Though C 4 OR C 5 would be used in 1004 as well.

 

[Surf Cat]

Concrete/C3

Not allowed....

 

[TerryRohrer]

How can it be logical to use the UAD ratings for components when they are intended as a measure for the entire dwelling? How often are short-lived components of short-lived components replaced? How can some components of a component need replaced?