Great news for appraisers!

Sometimes it's OK to use more than 3 comps.

Maybe you could use 3 comps that sold in the last 3 months and then maybe another 3 that actually represent market value.

I know it's twice the work, but sometimes you just have to put in some extra effort.

Mike, that was great!  Thanks for the good laugh!  : )

I just tell them I am the certified appraiser under Federal and State Regulations and gave them a USPAP complainant appraisal report.  Have the underwriter write it down on lender stationary, sign it and fax it on over so I can forward it off to the proper authorities.  It sort of killed my desire to appraise for residential lenders any longer.  Funny thing, this never happens from commercial lenders.

I personally like that if dataquick says median values of homes in a certain zip code have declined 50% over the last year that is the time adjustment you must use.

Who really cares about the size, condition, neighborhood, location or what paired sales shows you if dataquick says that zip code has declined thats what should be used in your report.

Oh yeah what up with all the fuss about median values what ever happened about the average values?????????????????

Mike,

Happy to hear it's not just me getting this stuff.  I was just thinking the underwriters were getting paid by the stips and conditions, or maybe they think we have magic dust to help find these non-existing 90 day comps in the middle of winter. It appears that most lenders (one mentioned above) have declared the entire state of Indiana in a declining market (yes, thera are still some stable areas).
Don't they think we would have used these great comps if they were available??? 
I've started charging an extra fee upfront for a few of these lenders

Wow! that felt good to get off the chest.

I don't think it's the underwriters so much as it's the amc's trying to fit each and every appraisal into a "specific perfect". In doing so, they are taking away the "independent" aspect of the process and in doing so,undermines the whole process of appraisal valuation.... Not to mention, "amc's- the middle man" taking a good chunk  (ka ching) of the fee for the appraisal itself in doing so. (Respa has some MAJOR catching up to do). Quality work and experience seem to be on the low end, while quick and cheap are sought after. Look at the major amc's and see what the below appraisal fees are and what they are stating the appraisal fees to be to the borrowers... 

Unfortunately, I need to agree with this - it seems that good comparables are ignored in favor of recent ones - just work on one with the exact same scenario - of course through an AMC.  Our entire appraisal process is circumvented by the "perfect" ideology, yet we are blamed for the housing problems.  Seems a bit unfair!

Yesterday I was told by a Bank underwriter to use 2 more sales, at least 1 from the subject PUD, even though I explained in my report that there were none available, and that I had used the most similar and the most recent sales.  They also asked that I make across the board adjustments for location which I HAD made, and explain things that I HAD explained.

So... the problem in my case is the underwriter didn't READ (or can't read) the appraisal report.  I usually resolve these READING issues by speaking directly with the underwriter and going through the report with them.  In this case the Bank processor says the underwriter is an independent contractor and will not speak with the appraiser.  The underwriters are NOT appraisers and usually do not have any appraiser training, and in some cases, evidently, do not have to READ.

Byron,

So they paid you for an appraisal, and then used the AVM?  Sounds like they could have saved some money, but you probably needed the work.  Well that will be a lick on them when the value is shakey!!!  The standard AVM has an acceptable margin of value error of 10-25%.

If we can't meet their "preferred parameters" we don't know that until we DO the appraisal.  So maybe we should get paid upfront for our "research" and then tell them we can't do the appraisal cuz there are no sales that meet their criteria!!

Outstanding Form! 
Probably require us to pay $100 for another 4 hrs of CE to be able to use it though.

I can so relate to all 37 responses.  I think all people who handle real estate transactions (Realtors, Brokers, Lenders, Underwriters, etc) should be made to take a USPAP class - yearly and test them too.  Perhaps then, they would allow the Appraiser to do the job of appraising the property and selecting the best comparables, rather than coming up with absolute nonsense.  Personally, I will not provide additional information if it leads to a misleading report - I'm sure the same applies to all of you, hence you would not be involved in the writing.

I don't know about all of you, but I got out of the corporate world because I worked for idiots, how the heck did it spill over into the Independent Appraiser world?

I'd like to know who is actually coming up with the underwriting guidelines.  I'd like to see them post the appraisal guidelines on the inter-net for us all to read through - before we begin to work for them.  Let's face it, with the changes our industry is undergoing, many people will be leaving this field of work.  While AVMs might be a useful tool (ha) there is no substitution for an interior appraisal of either type property (residential, commercial).  Eventually, (statistic say) our numbers are purported to dwindle down to less than half of the current appraisers.  Wonder how long some of the lenders would stay in business if they couldn't have our help in the process, if WE decided to have forums of who didn't pay, who attempted to force value opinions, who ask for irrelevant/non-appraisal types of information .  You get the picture. 

While the battles rage on, if the day is slow, don't forget about your liability insurance, they can be a great help with giving good argumental information for these types of problems.  We pay a lot of money to the groups we belong to in yearly dues/fees, get them to help.

Best of luck to you all, keeping up the GREAT work we all do.