Underwriter wants more comps that have sold

[Les Brant]

Got a call from a LO with regards to a request from the UW. I did a manufactured home in December, good value, solid appraisal comps, but just a little old. Explained in addendum the reason for older sales. LO tells me the the UW want more comps that have sold as what I used were not sales. " WHAT DO YOU MEAN, NOT SALES?" , I ask. Then he tells me that down at the bottom of the page, I have indicated "No Sales" for each of them. I then proceed to tell him to send the UW back to UW School and learn how to read an appraisal. I then have to educate him as to what that section of the report means and how to understand it. Well, he still has to have two more comps, even though there are none in that part of the county. I finally agree to go out of the market area and find them just to show that the glorified wobbly boxes still have a market.

And just when you think you have heard it all.

Les in Sunny Coastal (N) Carolina

 

[Ben Vukicevich SRA]

Hey Les,

Can your underwriter talk to my underwriter? Mine says if I "can't make value" with three sales, forget it. She doesn't want to see 4, 5 or 6 sales. She refuses to even look at more than three and demands that they be removed if I sneak in more than 3, basically telling me that I am a valued partner in the underwriting process...blah blah blah. but implying ,tow the line (3 comps only) appraiser guy or you get no more work. She says more than 3 comps makes the final investor nervous when "making value." The investor automatically assumes something must be wrong if the appraiser analyzes more than three sales. I do like that term "making value" though. I say more comps just further refine the value opinion and she can cross-out the extra one's she doesn't like. No dice. Oh well.

I would suggest trying "No sales in past year" in the URAR box. The little dummy should understand that wording. Well, maybe not. I had one ask if my sales were closed when I recited the actual Deed Book and Page numbers for each comp. She had never heard of a deed book. She wanted to know if it was like an MLS Book................................

We must get these two together........

Ben

 

[jtrotta]

Les; maybe I can help, used one of those little wobbly boxes as a sale comp. the other day; now I know we're a little over a mile :lol: :lol: from each other, but what the heck, they probably won't believe you any less :lol:

 

[Blue1]

Ben,

That's totally ridiculous! Does the UW have their appraisal license? In my area the market is hot. Prices are on the rise. In this market, the principle of substitution has to be taken into account. (remember that phrase?) Well......I always try to include a recent listing (comp 4) in most of my appraisals nowadays to indicate what the current, active Market is like. This is important in a rising Market where existing inventory is limited. The UW is clearly over-stepping her bounds and should be reported in my opinion. Why not ask the UW for the "final investor's" number? You could call them and talk with them personally. My advice (for what it's worth) tell that client and UW to take a hike.

P.S. Thanks for your help on the FHA question. I'm still waiting for a CO on the property.

Bruce M

 

[Mountain Man]

:lol: :lol: :roll:
What??! You expect SALES to be in the market approach?


Opps, for got to turn on the emoticons. :wink:

 

[Randy Beigh]

Les,etal

A few years ago I found a way to deal with the folks who want extra comps. When they call for extra comps, I tell them that is extra money. In other words, I charge for the additional work. Invariably, they decide they don't need the extra sales.

This assumes that the work was up to par to begin with. If the underwriter can show me that I screwed up, then it becomes a matter of customer service and that I do for free.

 

[Dale Smalley]

I agree with Randy.

They are making a request for additional work to be done then charge then for the time and effort. Seems like a fair and reasonable request. I have also seen listings used as additional comps to support the value if there are no other recent sales.

 

[Leon Stewart]

Ben:

You are absolutely right, the Format calls for three comps, and there shouldn't be any add on's for additional comps. This is a problem that should be corrected by the Standard's Board of the Appraisal foundation.

Over the years I've went to different cities to get additional comps, and this is in full agreement with these Lenders/Underwriters, but it's the silliest thing I ever heard of, but in the same process we have to "Boilerplate" the Report by including a statement like, "the communities are comparable", which is the most absurd thing I have ever heard of. This is just one of the many deficiencies in the Appraisal Profession that keeps it from reaching the legitimacy that it should have.

leart3

 

[Joe Birrell (NY)]

Ah, I always given them the worst three sales (not even comparable) in my first report, and save my three identical sales on the block that all closed 24 hours prior to my inspection (no adjustments of course). The reason I do this is because a really love dealing with idiot UW's and totally enjoy rewriting every report. So what's the problem ?

 

[Ken in Arkansas]

I do little residential work anymore, but when I did I too came across the UW who wanted additional comps. In some of the areas that I worked I was happy to have three sales in two years much less three comps in one year. To one request for additional comps I told the UW that "I was very sorry, but the only appraisal course that I ever flunked was the one where they taught you to invent sales, and she would have to engage another appraiser to get additional sales". When she quit laughing, she finally said the appraisal "wasn't so bad after all", and would accept it as submitted.