Is it closed, or just a contingent offer? maybe its just a listing with an offer? The most active items in the MLS is REPRICING. Look at the number of price increases and the number of PRICE decreases, aren’t they typically equal to the solds? A lot of stuff happens during the escrow, and after the appraisals. My technique is to analyse the offer made within the report.

Frequently my analysis states (“my value opinion was influenced by the contingent offer for the subject”). Most offers are contingent on the financing YOU are influencing.

Was it a closed sale? Was it an offer which influenced the appraiser? was it the result of a fixer where you have all the arithmetic proving costs, profits to calculate the important stuff?

Remember we are charged with analyzing all the stuff. It seems the appraiser should know all that stuff.

Some years ago I found a high house sale which immediately sold afterward for 20% less, checking further I found was part of a 1031 exchange for a retail commercial in downtown Banning

Hmmm. There’s no argument to that!

You know, got to play nice with the good guys, the process is so bureaucratic that compliance as all parties understand that to be, can be tough to achieve in some scenarios. I stay focused on education and compliance, taking a technical free writing approach, but it’s true that sometimes you can cash through a client in a single order. Good customer service is accommodating the diverse mix of borrowers the client sources. Love it or leave it, no borrower shall be left behind. The appraiser ties the real property to a value number, and is then tasked with sailing that figure through the lenders systems. It’s not over, till it’s over.

“Us regular mortgage lending lackies don’t have quite the same lattitude.”

-I don’t agree with you. There are too many examples that say different

But that acquiescence should NEVER become so ingrained that the appraiser is afraid to stand their ground when required.

Selecting another comparable is not that big a deal (provided the subject comp for itself is not there to demonstrate something that ONLY the subject can demonstrate). But where do you draw the line?

Corelogic reports a property that sold two years ago to be in ‘excellent’ condition but inspection shows it is less than fair condition due to incomplete remodeling. I mean incomplete to the extent that the stucco in the back was never mud, or color coated and gaps exist in the stucco between walls-so interior portions are exposed to weather; Wood trim and eaves have extensive repair needs (like 30% need to be replaced). Client tells you the report condition must match the public record data because they (assume) that’s what CU’s big data analysis will be based on. There are reasons for AIR. This is one.

I find if I push back on the smaller things-big things like my last scenario don’t crop up from the lender QC folks-though I’ve seen where other appraisers have been told exactly what I pointed out..

Us regular mortgage lending lackies don’t have quite the same lattitude.  And for smart side appraisers, that conversation goes down with the desk manager who so graciously for one reason or another has preferred you to the masses for fair fee direct assignment orders.  It’s not as simple as just flushing through amc’s anymore.  In an unexpected turn of amc events, they flushed themselves and now we’re trying to build the professionalism back with direct.  It’s always a somewhat tentative engagement because an amc vulture is always standing there on the sidelines, constantly soliciting our clients.

Oh man, I’ve nearly given up on asking for the uw’s name.  They seem to be unaccountable and shielded by whatever lender they work with.  I’ve demanded they ring and still won’t provide their name when they call.  One time a lady had a cat meowing in the background. It would be better practice for lenders to be required to disclose the uw’s name and company, the closing date, the rate, as well as the home inspection report to the appraiser.  Not having to cold quiz the home owners if they’ve refinanced in the past 1 years time would be helpful as well.  CU, and we’re all appraising in the blind these days.  I’m wondering if this industry will ever move past the same rehashed issues which are common place but never quite resolved.  It seems flawed by design if you ask me.  The only relevant thing I learned from the latest issue of appraisal buzz was merely a confirmation that turnover is so substantial it’s doubtful anyone really knows all of the details.  Rendering the crew here at appraisers blogs as the best consultants in the industry.  Non advocates who put pen to page are few and far between.  It’s great that Mr Harris contributes, this blog is worthy of articles sourced from far and wide with it’s unique independence, not answering to interested parties and advertisers.  Appraisersblogs is truly one of a kind.  It’s doubtful that other popular writers even have the independence to post here even if they wanted to, having to answer to sponsors and all.  That’s probably why they don’t.

Were ‘rejections’ by real UWs or just the magical AMC claimed “Underwriter says?” I never accept the latter. I want the UWs name and official title and then I want to know if it is at the correspondent lender or the funding lender (the real UW).

Most obvious reason for resale is a legitimate ‘flip’. You have the value ‘before’ and you have the apparent price after which gives indication of either time increase (if no significant repairs) and / or market value of difference between poor or fair and good to excellent condition depending on circumstances.

Subject as comp? Tried it, UW’s rejected it so often, I don’t even try. Besides such an approach begs the question; Why is it turning over again so soon?

BB respectfully, you may have partially missed the point. No one said that every sale of a subject property will set or prove the market value. What is being pointed out is that many times the subject sale and resale could provide irrefutable support for (1) market increase (2) market perception of renovation value; etc in conjunction with other data. The least it does is serve as a valid pending sale for it’s own transaction. You will know far more about that particular pending sale then you are likely to know abut any other. It’s rarely yes or no; black or white. It’s use is why appraisers are needed. Is it’s sale relevant data for a current market or is it’s sale something that doesn’t ‘fit’?

What a great question Dustin!

Using your subject as a comp is nothing short of a self fulfilling prophecy. It should be taken into consideration and analyzed, but I would not be used it as a comp.

Disclose the subject transaction but let the other market data dictate whether it was in line with the market.

Seek the truth.