This Is Not Intended To Embarrass Anyone

[Elliott]

"The entire file is public record."

Give me a link, please.

 

[Bob Ipock]

There is no link. You have to call or visit the NCAB.

 

[Mike Kennedy]

I guess if the subject is in a subdivision, you better use comps in the same subdivision if your in NC. They don't seem to be able explain themselves further than that.

a re-read will inform you the issue is failure to address why more proximate sales are not among the most recent and similar comparables utilized.

 

[Elliott]

"Its hard to cross examine a piece of paper."--Matlock

 

[Bob Ipock]

"Its hard to cross examine a piece of paper."--Matlock[/QUO


More than likely these cases were settled without a hearing...but at a settlement conference. The acused can always get a attorney and has every oportunity to always ask any the questions. It it goes to a formal hearing the investagator can be cross-examined . Very, very few cases go to a full hearing.

 

[Tim Hicks (Texas)]

Tim,
My problem is when a board says that comparbles were 'outside' the subject's subdivision, they don't explain beyond that. Of course we don't know about the comparables used or the ones apparently suggested by the board.....because that's all they say. It could be that "subdivision" is determinate of value. If I go outside the subdivision because because the subject is a two story with 2200 sf and the comparables "in" the subdivision were ranches, I might cut the appraiser some slack. The 'subdivision' issue caught my eye with a quick read of the summaries.

I'm stipping them to explain more. They haven't adequately supported their review.

Shouldn't there be a two story sale of some kind in the subdivision (dated, larger, etc) that can be thrown in to support why you need to leave the subdivision? That is my only point in self preservation.

 

[Mr Rex]

It's not a NC thing. From Fannies selling guide:

Comparable sales from within the same neighborhood (including subdivision or project) as the subject property should be used when possible. Sale activity from within the neighborhood is the best indicator of value for properties in that neighborhood as sales prices of comparable properties from the same location should reflect the same positive and negative location characteristics.

Fannie Mae does allow for the use of comparable sales that are located in competing neighborhoods, as these may simply be the best comparables available and the most appropriate for the appraiser’s analysis. If this situation arises, the appraiser must not expand the neighborhood boundaries just to encompass the comparables selected. The appraiser must indicate the comparables are from a competing neighborhood and address any differences that exist. The appraiser must also provide an explanation as to why he or she used the specific comparable sales in the appraisal report and include a discussion of how a competing neighborhood is comparable to the subject neighborhood.

 

[Terrel L. Shields]

Shouldn't there be a two story sale of some kind in the subdivision (dated, larger, etc) that can be thrown in to support why you need to leave the subdivision? That is my only point in self preservation

In the small towns I worked in, it is a rare subdivision with over 40 houses. I would say the majority were 20 or less. So "subdivision" is rather meaningless. However, There may be 10 similar subdivisions within 2 miles or less. The lot prices are similar, the demographic similar and the houses similar. OTOH, I think you need to address any sale that lies within the circle created by putting a compass on the most distant sale and the subject, even if that means a sweeping statement to the effect you used a sale 4 miles away because it was the closest sale that was anything similar to the subject. The idea of "neighborhood" needs to be revisited when dealing with unique construction, rural property, etc. It makes no sense otherwise.

 

[Mr Rex]

As a follower of the NCAB Newsletters since I was a trainee, the most common reason for sanctions by the board is hopping to superior neighborhoods and/or quality homes to artificially support an inflated price. When they say that someone went outside the subdivision and/or neighborhood when there were sales within the neighborhood to indicate a lower value, its pretty much a slam dunk that someone was after a pre-conceived or suggested value. While I've never submitted another appraisers work to the board for review, several reviews that I have done later appeared in the Newsletter later after the lender submitted the complaint. They were spot on that the appraiser in question was chasing a value and not providing an honest opinion of market value. My only beef is that too often the punishment is not commensurate with the crime, a federal felony.

 

[timd354]

This information is straight off the NCAB website. There is some excellent information to share with clients about by-passing sales in a sub-division or area and using "better comps" somewhere else. All you have to do is explain why you did not choose closer comps. Keep the MLS sheets in your workfile marked with WHY you did not use them. All of our clients need to be aware that our decisions & choices are always up for scrutiny.



http://ncappraisalboard.org/disciplinary/Disciplinary Action Summary.pdf

Based on past precedent, we have a list of candidates for a future spot on the NC board...in fact being disciplined twice by the board won't stop someone from being appointed to the NC board