A large lender has recently amended their appraisal policy regarding comparables.
The table below was taken from their general information Correspondent Bulletin.
The change greatly expands what and how an appraiser filters data. It appears as though this lender wants to stand over the shoulder of the appraiser to make certain that the filtering is to their liking.
It brings backseat driving to a new level.
Imagine driving someone to a destination and having to provide a detailed list of every possible route to this destination as you arrive. Imagine having to provide detailed routes that you never seriously considered or had already discarded.
Imagine this conversation: “Why didn’t you turn left at the corner?”
“Because it leads off of a cliff.”
Irritating, isn’t it?
Gathering maps and determining the best possible route to a value destination is the job of a seasoned appraiser, right?
What does USPAP call this process?
Its called Standard 1:
In developing a real property appraisal, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analyses necessary to produce a credible appraisal.
It’s entirely up to you as professional appraiser whether you wish to hop in the car and hand piles of maps to the person in the backseat.
Most prefer to follow their own path.
By Lee Lansford – Illinois Appraiser Newsletters – Volume 4, Issue 6