UWs are finally calling BS on

[chad hampton]

What’s to explain? This is the adjustments as they are market derived. If some random party 2000 miles away disagrees, shouldn’t they be required to say why they feel the adjustment is wrong and with their experience tells them it should be?

This profession is very unique in which the licensed professional is the one that is always assumed to be incorrect.

 

[djd09]

how do the mortgage brokers and the borg come up with their adjustments...

 

[DWiley]

I’ve never taken a class that offered a real world example of how to derive adjustments.

That is pretty sad.

When I took my 102 class the final exam consisted of taking a data packet on a fictional home in a fictional area and writing an appraisal report soup to nuts, including showing how each adjustment was derived from the data. We basically had 4 hours (or maybe it was 6) to write a demo report.

 

[chad hampton]

The state of the profession is sad. I agree.

 

[Tawfik Ahdab]

Chad wrote:

“Learning adjustments doesn’t come from education, it comes from years or decades of real world experience working in a particular geographic area.”

There’s that dreaded word that is so out of fashion, if not practically verboten today: experience.

As told to us by some appraisal scolds whose views are in vogue at the moment, appraisers are to approach each assignment with their mind scrubbed of prior knowledge, and undertake their work with a “tabula rasa” since experience - we are being repeatedly told - has no bearing on the appraisal process.

But if the appraiser is not required to know anything, how will he or she even know how to identify the appraisal problem, which is step number one in the appraisal process?

A newbie must rely on a mentor to provide guidance as to the appraisal problem in addition to the scope of work required to solve it. In other words, if it’s not the appraiser’s own experience that guides the appraisal process, it is the mentor with experience who does so. Either way, experience is a seminal factor in valuation, regardless of the trending “poo-pooing” of its role and importance.

Now, I’m not saying that the term “experience” is a substitute for “support”, but experience is given short shrift by those who are eager to minimize the importance of accrued knowledge in order to justify those vaunted “appraisal modernization” initiatives.

 

[DWiley]

What’s to explain? This is the adjustments as they are market derived.

If they are truly market derived, showing the work (calculations) should be easy, since the work has already been done.

Over the years i have read many reports that say adjustments are based on paired sales, or site value is based on recent land sales in the area. When I have called various appraisers and asked them to provide the pairs, or the land sales, it is very common for the response to be a long silence (or an f you)

 

[DWiley]

Now, I’m not saying that the term “experience” is a substitute for “support”, but experience is given short shrift by those who are eager to minimize the importance of accrued knowledge in order to justify those vaunted “appraisal modernization” initiatives.

As I stated before, if "based on my experience" means that I consulted the library of data and analysis I have accumulated, that is perfectly fine. Unfortunately, state investigators and loan underwriters often find that "based on my experience" is code for "I don't really have any support, I just used the same numbers I usually use." As with a lot of things in life, the actions of those not doing it correctly create burden on those that are.

 

[chad hampton]

What sort of work are you looking for? What precisely are you looking for when I make a $100,000 pool adjustment on a 900 K home? Is the fact that I’ve appraised thousands of homes and personally know 2 local pool builders and can tell a pool cost just by looking at it within 10 or 15% good enough? At least for a starting point?

Are you saying the pool should be 50k or 200k? If you’re saying an adjustment is wrong, just tell us what the right answer is.

Maybe I’m just better at this than most, but I’ve never been asked to expand on adjustments ever. Of course, I don’t make $30 per square foot adjustments the way a lot do.

I think if people started looking at adjustments in terms of percentages, you would get a better product. That should be stressed. Even I chuckle a little bit when I see a $50,000 pool adjustment on a $2 million home

I tried to live in the real world, and in the real world of appraising, you gotta make some judgment calls out there based on experience. It’s why experience and geographic competence are the most important things in this professional.

 

[chad hampton]

Powerline views, highway views, overall condition, quality, and all the other various subjective things that there are in an appraisal that are based on opinions. You’re not entering a bunch of **** into a computer and getting a reliable answer spit out of it. These are judgment calls. A lot of the sales grid are judgment calls. And that’s OK, every profession makes judgments calls.

 

[Surf Cat]

how do the mortgage brokers and the borg come up with their adjustments...

No need for adjustments Robot dude... since there's "no value"

The PDR promotes safety and soundness by obtaining current observation of the subject. Provides operational simplicity and certainty of application (they thought that one up at the bar at 15th Street). They're not looking at Value and marketability.

Based on what this dude says, they still send a broker or an appraiser out to the property....$195.00 for the buyer....saves a lot of money....

No need to worry about if the property is going to come in low... close your eyes and listen to the catchphrases of this video. And this was 2 years ago. Now it's on steroids.