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Underwriter request: FOUR MORE COMPS

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gunder

Freshman Member
Joined
May 29, 2008
Professional Status
Certified Residential Appraiser
State
Minnesota
2 closed within the past 60 days, one pending & one active.

Here is the email I just composed for my client--I just need some affirmation/advice from here before I click send! Thank you...

Dear Mr. Client,

I have given this quite a bit of thought and research.

As for two closed sales within 60 days, I searched a 2.5 mile radius and there is only one sale that I would use. It is already in the appraisal as comp 1. I cannot manufacture comps that will meet these guidelines. As for pending & active listings, they contribute exactly nothing to a sales comparison analysis. I have provided a thoughtful analysis and adequate support for my value opinion (which, in all honesty, I believe is conservative), but there is no additional support to be had. If this request is coming from an underwriter with a checklist, their checklist needs to be more realistic. If this request is based on a reviewer stating a value opinion different from mine, they must have conclusive evidence that my opinion is not accurate (item #6 on page 3 of the FNMA field review form). I’ve done my job, and I have to stand by my work.

I hope I don’t lose your business over this, Mr. Client, but I am going to have to consider this matter closed.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
I wouldn't use the term conservative, it might infer a certain bias. Well supported works better.
 

Jerry Bone Jr

Senior Member
Joined
Feb 23, 2004
Professional Status
Licensed Appraiser
State
Oregon
2 closed within the past 60 days, one pending & one active.

Here is the email I just composed for my client--I just need some affirmation/advice from here before I click send! Thank you...

Dear Mr. Client,

I have given this quite a bit of thought and research.

As for two closed sales within 60 days, I searched a 2.5 mile radius and there is only one sale that I would use. It is already in the appraisal as comp 1. I cannot manufacture comps that will meet these guidelines. As for pending & active listings, they contribute exactly nothing to a sales comparison analysis. I have provided a thoughtful analysis and adequate support for my value opinion (which, in all honesty, I believe is conservative), but there is no additional support to be had. If this request is coming from an underwriter with a checklist, their checklist needs to be more realistic. If this request is based on a reviewer stating a value opinion different from mine, they must have conclusive evidence that my opinion is not accurate (item #6 on page 3 of the FNMA field review form). I’ve done my job, and I have to stand by my work.

I hope I don’t lose your business over this, Mr. Client, but I am going to have to consider this matter closed.
If I were "Mr.Client", this would be the last appraisal you would do for me.
 

gunder

Freshman Member
Joined
May 29, 2008
Professional Status
Certified Residential Appraiser
State
Minnesota
If I were "Mr.Client", this would be the last appraisal you would do for me.

I wouldn't be a huge loss. I have only done one prior assignment for this individual, and it came with value pressure. And if this type of request is what I should expect from his files, I'm not sure I want to work for him anyway.
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
...As for pending & active listings, they contribute exactly nothing to a sales comparison analysis...


RE: Your statement above...

Do you mean this as a generality, or, in this particular instance, there are no reasonable market substitutes for the Subject that are either a pending sale or an active listing?
 

CBBoston

Member
Joined
Jan 27, 2008
Professional Status
General Public
State
Massachusetts
Pending sales and active listings might give you some usable info particularily if they are lower that the previous sales. That might indicate an even further declining market. I know that may muddy the waters even further with regard to current value but if I was a lender I would want to know that.
 

CURT VAN HOOSER

Senior Member
Joined
Nov 3, 2003
Professional Status
Licensed Appraiser
State
California
2 closed within the past 60 days, one pending & one active.

Here is the email I just composed for my client--I just need some affirmation/advice from here before I click send! Thank you...

Dear Mr. Client,

I have given this quite a bit of thought and research.

As for two closed sales within 60 days, I searched a 2.5 mile radius and there is only one sale that I would use. It is already in the appraisal as comp 1. I cannot manufacture comps that will meet these guidelines. As for pending & active listings, they contribute exactly nothing to a sales comparison analysis. I have provided a thoughtful analysis and adequate support for my value opinion (which, in all honesty, I believe is conservative), but there is no additional support to be had. If this request is coming from an underwriter with a checklist, their checklist needs to be more realistic. If this request is based on a reviewer stating a value opinion different from mine, they must have conclusive evidence that my opinion is not accurate (item #6 on page 3 of the FNMA field review form). I’ve done my job, and I have to stand by my work.

I hope I don’t lose your business over this, Mr. Client, but I am going to have to consider this matter closed.

Opinions vary... At any rate, your tone seems less than helpful. You could just direct them to you comments on page three of the URAR (or whatever page you use) that explains the lack of recent sales and why you used the sales you used and made the adjustments you made. It is what it is... You can't get blood out of a turnip...
 

gunder

Freshman Member
Joined
May 29, 2008
Professional Status
Certified Residential Appraiser
State
Minnesota
Pendings and actives are not sales, and I am not able to predict what their selling prices will be, so I don't think it is appropriate to give them consideration in a sales comparison.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Somebody send gunder the memo.
 
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