This Is Not Intended To Embarrass Anyone

[Bob Ipock]

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

 

[Bob Ipock]

Cases 3, 5 and 7 in particular.

 

[Terrel L. Shields]

... was supervised on this report, but his supervisor did not sign the report because he was under the mistaken belief that an evaluation
was not an appraisal..... He performed 70 other assignments similar to this one.
​

Heard that argument before, right? It's only been an issue for 25 years...

 

[djd09]

The AMCs appraisers should be very happy about appraisal nation AMC penalty.

 

[Elliott]

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.

 

[Meandering]

... was supervised on this report, but his supervisor did not sign the report because he was under the mistaken belief that an evaluation
was not an appraisal..... He performed 70 other assignments similar to this one.

All Appraisals are evaluations, but not all evaluations are appraisals, however, it is appraisal experience that counts for trainees. And they wonder why WE parse words so finely.

CMA = opines list prices.
evaluations = opine values.
Appraisals = opine defined values.

 

[Tim Hicks (Texas)]

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.

Why should that just be NC? The only reason to go out of a subdivision is the lack of sales. Location, location, location.

 

[Elliott]

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.

 

[Bob Ipock]

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.

All you have to do is explain why you had to leave the s/d, neighborhood or area. "Why did you go 2 miles away to a superior location and most likely higher priced sales."

Their "review" is prepared by an investigato/appraiser who has access to all MLS data. In addition, they have a multi page workfile with far more detailed in formation. What they publish is only a summary. The entire file is public record.

 

[hastalavista]

When the expectations are contrary to what is done, the expectation is an explanation of why that is so.

Everyone would expect sales in the same subdivision to be considered if they are available and appear relevant.
If the report determines that, while they may appear relevant they are, in fact, not relevant, then the expectation is to provide some summary of why that is so; this supports the exclusion of these same-subdivision sales and supports the inclusion of sales from outside the subdivision.
This isn't difficult to understand and isn't difficult to carry out.