The reviewer's request... as stated... does not require geographic compentence. The reviewer said that the appraisal report contains insufficient support for the adjustment. That doesn't require any geographic knowledge. Not saying that I agree with the reviewer's request... I'd need to review the appraisal report myself to have an opinion about that.
Review is subject to Scope or Work just like Appraisal is. Some reviews do not require the reviewer to deliver their own opinion of value. They don't need to understand the market in the subject's geographic area. They don't need to have access to sales data from the area. What they need is to be thoroughly grounded in Standards and in appraisal methodology.
How would a reviewer know the "
report contains insufficient support for the adjustment", say you did a detailed data review for an in ground pool adjustment, you used 3 or 4 paired sales and determined that the in ground pool adjustment should be $45,000, the reviewer comes back and states that the "
report contains insufficient support for the adjustment" how would they know that, they would 100% have to have geographic knowledge to state there was insufficient data for the adjustment, the problem is, to many times these requests for and explanation for adjustments are
to vague, there is no, you made a $45,000 adjustment for an in ground pool and
we don't agree with it because of, X, Y, Z, it's always, we don't agree with it and want you to explain it to us.
The appraisal reports that most appraisers complete for GSE work, are not supposed to explain in great detail EVERY adjustment that is made, as Mr. Shields already posted.
SR 2-2 (a) (viii): “
Summarize the information analyzed, the appraisal
methods and techniques employed, and the
reasoning that supports the analyses, opinions, and conclusion.
The problem these days is that appraisers are not able, by a LOT of lenders and AMC's to
Summarize the information, methods and techniques employed, reasoning that supports the analyses, opinions, and conclusion, they are expected to explain EVERY detail for EVERY adjustment, "Comp 1 and 2 were adjusted for gross living area, using paired sales (from 14 other possible comparable sales considered) and 123 Main Street was compared to 123 Maple Street" "Comp 3 and 4 were adjusted garage count using paired sales (from 14 other possible comparable sales considered) and 123 Manor Street was compared to 123 Congress Street" this is the reason I am slowly fazing my way out of doing GSE appraisal assignments, once all of these changes that are coming at the end of 2025 and early 2026 come, I will be completely done with any GSE work.
