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WHY they were the best comparables?

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Thomas N. Morgan

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Jan 15, 2002
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Certified Residential Appraiser
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Florida
a la mode's Athena version now supplies a form they call STANDARD APPRAISAL ADDENDUM. In it, the appraiser is asked to explain WHY they were the best available comparables, and WHY there were not more recent or newer sales in the area. :roll:

I quit doing work for lenders some time ago, but now am doing one for PMI, which will, of course, go to a lender.

Is there a fitting answer to those questions? What say you?

Thomas N. Morgan (Florida)
 

Mountain Man

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Certified General Appraiser
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Georgia
I don't use a la mode, but I think you just gave me the best reason to NOT use a la mode. :lol:
Is it a part of your USPAP addendum? If not, don't let the lender or UW see it! :wink:
Mell.
 
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Retired Appraiser
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Florida

a la mode's Athena version now supplies a form they call STANDARD APPRAISAL ADDENDUM. In it, the appraiser is asked to explain WHY they were the best available comparables, and WHY there were not more recent or newer sales in the area. :roll:
Tom,

I'm not familiar with that form. Must be new or one I've just never found. I'll look it up in the morning and let you know what I think.
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Thomas N.,

I recall those foolish underwriter requests: We want you to write an addendum regarding why there were no sales available in closer proximity ..

Became expert at filling up a 14" legal sized addendum on that one. "The reason that there were no sales nearer than comparable sale #1, which was found to be 3-1/2 miles from the subject property is that, from the subject property to 18,479 feet from the subject property (an area of One billion, 73 million 202 thousand and 243 square feet, or 24 thousand, six hundred and twenty three acres) no property owner was sufficiently considerate of the underwriter's needs to not only have offered his/her/its property for sale in the preceding 365 days but to have consumated a sale thereupon."

"The reason that no sales nearer than comparable sale #2, which was found to be 4-3/4 miles from the subject property is that, from Sale #2 which was found at 18,480 feet from the subject property to a distance of 25,079 feet from the subject property no property owner was sufficently ... (and so forth.)"

Ax a supid question .. receive a commensuratel reply ..

Never forget:

Banks/lenders hire clerks and promote from within

Cheers!
 

Carnivore

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Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
In reference to the form. I have looked it over and it is excellent. The form is mischarecterized by the originator of this thread. It actually is a form that allows you to be consistent in your format of explaining transgressions and deviations from accetable guidelines to your regular clients. It aids an underwiter or any reader for that matter to follow the report progression.

I recall that Alamode is the ONLY appraisal software company that ask for FORM input. This was one of the forms appraisers ask for. In other owrds ALAMODE did't dream it up they just responded to there CUSTOMER. This is certainly more than you can say for other companies.

I think it would be foolish not to use this format on basic residential appraisals. This is nothing less tahn working smarter, faster and more profitable over your competition.

Just my 2 cents. ACI guys eat your hearts out.
 

Jo Ann Meyer Stratton

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Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
I use the Day One software which has an optional text addendum. All my reports have a narrative type three to five page text addendum. Describes my area, describes the site, describes the subject improvements, describes the marketability in area, then a full paragraph describing each comparable, its features or lack thereof, its listing and sales history. Also on the grid, I post the total exposure time for each comparable that includes all the FSBO ads, each listing with each realtor, etc. I can almost say that I never receive a call back from anybody--if I do, I tell them to read paragraph three on page two. One of my pet peeves when reviewing a report is to see a sentence about the appraiser used the best comps. WELL, I certainly hope they did! But they do need to describe why they did and as much info about each comparable so that a reader of the report can follow the flow of information, understand the procedures, techniques, thought processes and reaches a similar conclusion. Just saying the best comps doesn't do the job! Also that narrative addendum is quicker, saves time, saves hassles, the report is over and done with when it goes out the door--never heard or discussed again.
 

wade3333

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Jan 15, 2002
Professional Status
Licensed Appraiser
State
Georgia
Joann, bradford does not have that, and I say that" these are the best comps found for the subject", what I mean is these are the best comps found for the subject. UW's have Had very few questions. Wade
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
To answer your question as to why the comps used are considered the best available, let me quote what I put in nearly every appraisal I do up here in Northern Michigan......

DUE TO THE LIMITED NUMBER OF ANNUAL SALES, NO TRUE COMPARABLE SALE FROM THE NEIGHBORHOOD IS KNOWN. COMPS SELECTED ARE TAKEN FROM THE SAME MARKET AREA AND ARE JUDGED TO BE RELEVANT FOR USE IN THE APPRAISAL PROCESS........ COMPS MAY UNAVOIDABLY EXCEED CERTAIN GUIDELINES BUT ARE CONSIDERED ADEQUATE TO REASONABLY ESTIMATE SUBJECT'S VALUE.

What I am saying is that the comps used, in my not so humble opinion, are relevant to the valuation process used in the sales grid. I am not saying that they are the only comps that can be used but that these comps, after due consideration, are judged to be adequate and relevant.
 

Will Granger

Sophomore Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
I use a one-liner: The appraiser has researched the market within the limitations mandated by the mortgage lender and has found the best comparable sales available.
Sometimes it helps unless a UW's manager is looking for more work out of the UW. :roll:
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Just don't use only the sentence, "used the best comparables available"!!! Explain, explain, explain! Mother has spoken :!: :!:
 
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