Verbiage help

[Joe LaRosa]

Could use some help on verbiage.

Lender is requesting a comment on how it was determined that the best available information was utilized in preparing a report.

Also, on a review of another appraiser's report - lender is requesting that if we feel the value is misrepresented would we provide gridded comparables to justify the difference in value opinon and why?

I guess I'm brain dead this afternoon. Your input is appreciated.

Joe

 

[Judy Whitehead (Florida)]

Initially, I was brain dead on these, too - after all, what are they paying you for except for your expertise?

I think I would simply state that the information utilized was provided in the public records, MLS, or whatever other data source that you may use, and although it is not guaranteed, it is believed to be correct.

I think what they may be asking you on the second question is "Will" you put new comps to the review and "Will" you explain why you think they are better ones. This is one of the reasons I quit doing reviews, as if you must do this, then you must actually do a complete new appraisal report.

 

[airphoto]

Joe,

Best answer to both parts is "see resume, provided earlier .."

 

[Pat Butler]

I almost never say that the best data was used. My clients won't pay me enough for such a wide scope. Are you searching FSBO's and for any other sales that occurred that weren't part of your MLS? The only way you could be sure is to go through all of the transfer documents are your county, or wherever.

In reality, many subject properties can have a wide range of 'appropriate' comps that can be chosen. Try, "Considering the scope of the appraisal, appropriate sales comparables were chosen and adjusted." Be sure to be very explicit when describing the scope of your appraisal. I say, for instance, that I did not research any FSBO properties- typically just MLS sales and builder sales WHERE APPROPRIATE DATA CAN BE VERIFIED REGARDING THOSE SALES. We've all found great comps where we just can't get the builder or Realtor to return our call to verify some important data. Maybe that was the "Best" data. That's why I'd shy away from that term.

 

[Richard Carlsen]

You might put something like this in your Scope of the Appraisal:

"Sales of vacant land obtained from the local multiple listing service was utilized for vacant land values and site values for improved properties. Sales and offerings from the multiple listing service and sales from the appraisers own database were considered in the development of the Sales Data Approach. While these sales do not represent all of the possible sales data available, it is considered sufficiently reliable in content and adequate in quantity to reasonably form an opinion of subject's value."

 

[Pat Butler]

Excellent verbiage Richard....