When lender ask for additional comparables?

[KJR2008]

The subject property sold 5/2010, it was used as one of the comparables, only one other sale in the neighborhood sold more than the subject. Appraised value $155,000, same as the prior sale price of the subject property. Appraised value is bracketed, lender wants another comparable that supports the appraised value. Curious if others feel that prior recent sles of the subject should be given equal if not more weight in the final estimate of value.

 

[Webbed Feet]

The subject property sold 5/2010, it was used as one of the comparables, only one other sale in the neighborhood sold more than the subject. Appraised value $155,000, same as the prior sale price of the subject property. Appraised value is bracketed, lender wants another comparable that supports the appraised value. Curious if others feel that prior recent sles of the subject should be given equal if not more weight in the final estimate of value.

My standard response to such a request is it = an unacceptable assignment condition. I can look for and provide other sales and attempt to compare them as best possible to the subject's features and location, etc. What I CANNOT do is intentionally go looking for sales that "supports the appraised value." or that support any other value. While I certainly can be an advocate for my own value opinion, I cannot accept instructions asking me to search for comps from a position of bias in order to support my value, their value, or any value.

P.S. One out of precisely how many comparable sales total used?

 

[OminousRun]

My standard response to such a request is it = an unacceptable assignment condition. I can look for and provide other sales and attempt to compare them as best possible to the subject's features and location, etc. What I CANNOT do is intentionally go looking for sales that "supports the appraised value." or that support any other value. While I certainly can be an advocate for my own value opinion, I cannot accept instructions asking me to search for comps from a position of bias in order to support my value, their value, or any value.

P.S. One out of precisely how many comparable sales total used?

Webbed, I know you like to play high and mighty, but this is not an unacceptable assignment condition. They are simply asking for more support (aka another comparable sale) to defend YOUR APPRAISED VALUE. They are not asking for a comp that supports the sales price, they are asking for a better appraisal. More data. Better data. Better descriptions and methodologies with that data.

You have to defend your work (opinion of value). If it takes adding more comps or writing a detailed description of your analysis and methodology, then that is what you have to do.


Geesh.....

 

[KJR2008]

Webbed, I know you like to play high and mighty, but this is not an unacceptable assignment condition. They are simply asking for more support (aka another comparable sale) to defend YOUR APPRAISED VALUE. They are not asking for a comp that supports the sales price, they are asking for a better appraisal. More data. Better data. Better descriptions and methodologies with that data.

You have to defend your work (opinion of value). If it takes adding more comps or writing a detailed description of your analysis and methodology, then that is what you have to do.


Geesh.....

Thanks for the responses, In all honesty I dont feel the leder request is out of line in asking for another comparable to support MY appraised value, what I may be questioning is my rational that a recent prior sale of the subject is the best comparable availabe and that it should be given significant weight in the final estimate of value, only one other sale was supportable of the appraised value.

 

[Webbed Feet]

Webbed, I know you like to play high and mighty, but this is not an unacceptable assignment condition. They are simply asking for more support (aka another comparable sale) to defend YOUR APPRAISED VALUE. They are not asking for a comp that supports the sales price, they are asking for a better appraisal. More data. Better data. Better descriptions and methodologies with that data.

You have to defend your work (opinion of value). If it takes adding more comps or writing a detailed description of your analysis and methodology, then that is what you have to do.


Geesh.....

No... What an appraiser has to do is satisfy the engagement contract, comply with USPAP, and the original report should have gone out the door well "defended" in the first place. If after all of that I am asked to "defend" my opinion of value without good cause, then what that would be called is after-the-fact additional assignment conditions that alter the agreed upon SOW. A little matter I take care of during my original negociations regarding the original SOW.

There is researching comps, then there is researching additional comps with a goal of hitting a predefined value. After the other party knows my value opinion, asking me to reasearch and provide more additional comparable to "support" my opinion that I already supported is asking me to intentionally seek sales to hit a predefined value. The fact the value is my own is beside the point. If the other party wishes to accuse me of not having satisfied my engagement contract, that is a different matter. But having done so, then being asked to do more anyway, is also a request for a freebie I did not contract for, nor charge for.

Perhaps more appraisers need to discern the difference between defending their work and getting raped with unreasonable demands.

 

[Webbed Feet]

Thanks for the responses, In all honesty I dont feel the leder request is out of line in asking for another comparable to support MY appraised value, what I may be questioning is my rational that a recent prior sale of the subject is the best comparable availabe and that it should be given significant weight in the final estimate of value, only one other sale was supportable of the appraised value.

Again, the subject prior sale was one out of how many shown in the SCA grid used total?

 

[Roy Courtney]

Webbed, I know you like to play high and mighty, but this is not an unacceptable assignment condition. They are simply asking for more support (aka another comparable sale) to defend YOUR APPRAISED VALUE. They are not asking for a comp that supports the sales price, they are asking for a better appraisal. More data. Better data. Better descriptions and methodologies with that data.

You have to defend your work (opinion of value). If it takes adding more comps or writing a detailed description of your analysis and methodology, then that is what you have to do.


Geesh.....

They hire you to give YOUR OPINION of the value of a property. This is NOT A DEBATE. You are hired to give your opinion and you are not REQUIRED to debate your opinion. It is what it is. If they do not like said opinion, take a hike! Once YOU are satisfied with the information and give them an opinion YOU should be done. This crap of more comps, more comps, etc. is ridiculous! It becomes anyone's estimate of value but yours! The exception to this would be if the client is willing to PAY for all of this additional information. Money talks and the bullshi+ should take the walk! (remember the underwriter has no license)

 

[OminousRun]

Webbed, you are very idealistic. My guess is your customer service skills are limited too. The "I said its worth $zzz and I'm the appraiser and I completed my job and I know more than you!!!!" attitude is extremely poor for the appraisal profession. It's poor for any profession. Bad business decision if you choose to act like that. You are far more likely to get future work from the client if you a) are professional to them on the phone, b)adhere to their reasonable requests (an extra comp is not unreasonable), and/or c)explain to them verbally and in writing why their request cannot be completed.

Roy, I have found that I never get calls requesting more comps after I give a detailed report, with the analysis and methodology explained in detail. Unfortunately many UW's or others in the mortgage/banking industry do not take the time to read the entire report. Its a flaw in the system, not in the appraisal (necessarily). I either explain where it can be found in the report, or give them an even more detailed explanation of the information they are requesting. Many appraisers don't take the time to do that, however.

If you guys have attitudes like that to your clients, I'm amazed you ever get any repeat business. It's about being professional and courteous.

 

[Webbed Feet]

See how mild mannered I am Brother Ominous?

:new_smile-l:

 

[OminousRun]

See how mild mannered I am Brother Ominous?

:new_smile-l:

It's no big deal, we just disagree completely with handling request like these.

We could go into significant details why almost EVERY (yes I do mean EVERY) appraisal that has ever been completed has flaws and would need more documentation/analysis......but that could bring the entire appraisal industry crashing down.

I'm not jaded, I just know the fundamental flaws with appraisal methodology & theory. Throw in the fundamental flaws of appraisers themselves, and you have a bigger problem.

I'd love to see a complete revamp of the Appraisal Industry....but 99% of appraisers wouldn't like it.