These are not your Father's appraisals

By
Mortgage and Lending

Has anyone looked at a recent appraisal? Apparently; the appraisal community has now come up with a "coding system" for things like quality of construction and condition. Like "Good", "Average" and "Above average" were things we could not understand and without a codebook, I don't know how Q2 or C2 relates to any of the old words.

I am hoping an appraiser out there will comment and give me some insight.

It also seems as if some appraisals are being skewed a bit by this new coding system, it could just be old cynical me but, I don't think so.

It also appears that the number of comparables has increased as well. Used to be 3 or 4 would do and now I am seeing 5 or 6 when they can find them. Unfortunately; in this market when you get up to 5 or 6 they are usually lower sales prices that have to be adjusted upward and in most cases not enough. This brings the lower bracket down and the value of the subject suffers.

Again, appraisers please comment as these are just my observations and I have no idea what rules and regulations have been imposed upon you but, I am sure some have.

The phrase "The road to ruin is paved with good intentions" can be applied in whole to the regulations that have been imposed upon our industry.

 

Posted by

JPT......out.

816.820.4471

johnthompson@openmtg.com

www.kcmortgage1.com

Comments (0)