Appraisers will appreciate this: Bracketing square footage

By
Real Estate Appraiser with East Coast Valuations / W.F. Chesley Real Estate

 

My fellow appraisers, I would love to share with you the following addendum that I added to a report this morning. I know you can appreciate the humor and frustration in this.

 

 

 

 

 

Addendum to Appraisal Dated 4/13/2012

 

Regarding the underwriters request to add two comparables which bracket the subject's square footage.

 

The subject contains 950 SF. The appraisal provides seven (7) comparables that have the exact square footage as the subject (950 SF). As shown in the aerial photo above, the subject's market consists of many 950SF ranch style homes. Using homes outside of this range is not required. In addition, providing additional sales to "bracket" square footage would result in using sales outside of the subject's market  of different style and would be a disservice to the subject, offering confusion rather than clarity to this valuation.

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Topic:
ActiveRain Community
Location:
Maryland Prince George's County Riverdale
Groups:
Appraisers
Broker Price Opinions
Tags:
va
dc
maryland
alisa delice
appraisals
appraisers
comps
square footage bracketing

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Show All Comments
Rainmaker
426,296
Marcy Moyer
CDPE
Keller Williams Realty Palo Alto Probate & Trust Specialist

The last conversation I had with an appraiser he said to me"this is a really hard time to be an appriaser." 

April 14, 2012 08:37 AM
Rainmaker
159,953
Elisa Uribe- Realtor
Oakland CA Homes for Sale
Wells and Bennett Realtors

Wow, the underwritter must have had a long day and got dizzy.

April 14, 2012 08:57 AM
Rainmaker
1,237,048
Gene Riemenschneider
Turning Houses into Homes
Home Point Real Estate

The underwriter has a bucket list of things he needs done - they don't have to make sense.  Nothing like top down management of an industry.

April 14, 2012 09:32 AM
Rainmaker
653,973
Joetta Fort
Independent Broker, Homes Denver to Boulder
The DiGiorgio Group

I always warn my home buying clients about the underwriter process.  I swear underwriters sit around laughing and making this stuff up.

April 14, 2012 09:33 AM
Rainer
275,152
Kimo Jarrett
Kimo's Lifestyle Solutions
WikiWiki Realty

The underwriter really determines the fate of the transaction, so whatever they use, want or need to close the deal, the agent must respond, however, how many times does that occur? I'm with Lenn, #6, give them what they want to secure the close.

April 14, 2012 10:16 AM
Rainmaker
347,753
Sylvie Stuart
Home Buying, Home Selling and Investment - Flagstaff, AZ
Keller Williams Check Realty 928-600-2765
Wow, really? More needed with 7 comps that show the same square footage and ammenities of the subject property? Why would you need more? I'm with you.
April 14, 2012 12:01 PM
Rainmaker
173,379
Richard Glesser
North Country Appraisal Services

This is the reason I rarely submitted more than 3 comps.  When I had more, I felt it best to keep them for later submission if needed.  Besides, being an ethical, USPAP abiding appraiser, the first three are the best available comparables.

The pitfall of altering the square footage of two of the comps by 1 square foot to bracket is that you would stand to lose your license or defend against a lawsuit simply to meet this ridiculous request.

April 14, 2012 12:15 PM
Rainer
179,662
Jana Holmstrup
Jana Holmstrup - VP Ops - Kings Mortgage Services, Inc.

While we love agents who will just do whatever it takes to get a loan closed, I LOVE your response even more!  It just needed to be addressed and you certainly did that to a 'T' :)  Not that I'm sticking up for Underwriters, but sometimes it has to be addressed for FUTURE 'checklist reviewers'.  In most cases your appraisal will be reviewed two more times in the secondary market - and God help us if the loan defaults - your appraisal will be picked apart after the fact.  And a simple omission, even like this 'duh' omission, can cause a buy back for the lender.   Unfortunately, it's CYA time here in the mortgage industry.... 

April 14, 2012 12:56 PM
Rainer
123,556
Sylvia Jonathan
Broker Associate, SFR
Coldwell Banker Platinum Properties

Isn't it interesting that the brouhaha over influencing appraisers by buyers, sellers and their respective agents a few years ago during the inflated market only resulted in stupid regulations? Why are underwriters allowed to pressure appraisers into changing bona fide appraisals to the underwriter's pre-conceived ideas of value?

I applaud you for the totally logical additional comment on your report. Lucky you to have 7 comps! I only do BPOs, but the dearth of sales activity within the prescribed area often presents difficulties. I stopped accepting BPO orders for companies who have my reports reviewed by some fellow in India!

April 14, 2012 01:11 PM
Rainmaker
796,142
Marte Cliff
your real estate writer
Marte Cliff Copywriting

It seems to me that an appraiser's job is becoming more difficult and time consuming at the same time that your fees are being split with that 3rd party. Not right.

April 14, 2012 01:26 PM
Rainmaker
629,067
Stephanie/Bob The Ruiz/Miller Team
The Ocala Dream Team
Keller Williams Cornerstone Realty

Hi Alisa, good for you!  Rules are made to be broken.  I hope the bureaucrat who is reading your appraisal agrees! lol

April 14, 2012 04:37 PM
Rainmaker
191,173
Joy Carter & Jeff Booker Brother and Sister Team
Trust Your Family's Move To Our Expertise!
Keller Williams Partners Realty-GreatFloridaHomes Team

Most days I am not happy with many appraisers because I just do not understand the reasoning behind their choices, outside of "CYA".

On the flip side, the last three transactions, that I was ABSOLUTELY POSITIVE WOULD NOT Appraise (and in two cases HOPED THEY DID NOT......

ALL THREE DID APPRAISE!!

So I ask myself, is it me, its it them, is it the market and GOD BLESS ALL OF US For the last three deals that gave Buyers instant equity(even though two sellers are not as happy as they could be). 

Regardless - I DO NOT UNDERSTAND the reasoning, but then in defense of appraisers, I am not educated as one either (hence the reason - I just don't understand why appraisals do not work out these days, but FOR YEARS...they were just fine or close!   Lost, I remain,         Joy

April 14, 2012 07:32 PM
Rainer
145,762
Michael S. Bolton
MN Appraiser
Michael S. Bolton,Inc.

Hey Alisa~I love your comment number 3-priceless!

Have an AWESOME evening!

 

April 14, 2012 10:48 PM
Ambassador
892,869
Bob Crane
Forestland Experts! 715-204-9663
Woodland Management Service

Hi Alisa, thanks for the entertainment, always fun when a clients hires you and then tells you how to do your job wrong. I am also impressed that you could find so many good comps close enough to fit on the same aerial photo, we are lucky to find anything remotely similar in the same town.

April 15, 2012 03:27 AM
Rainer
37,638
Beatrice M. Stambulski
Sherman Oaks Real Estate
John Aaroe Group

Quite often I think in my area, the Underwriter has the upper hand. Someone who sits in front of the computer and has not stepped foot in one home that he is "suggesting" to be added to the appraisal. 

April 16, 2012 12:05 PM
Rainmaker
46,762
Alisa McKeel Willson
Certified Res. Appraiser
Appraisal Pros in Texas

Wow....I'd sure love to find 7 sales like that...matched pairs could finally be matched pairs... heck, I'd just like to see 7 sales...LOL...I work in a rural lake area...

April 20, 2012 12:30 PM
Rainer
20,126
Alisa Delice
Realtor & Certified Appraiser Luxury, FHA, 203k, H
East Coast Valuations / W.F. Chesley Real Estate

Alisa: Another appraiser named Alisa - Get Outta Town!!

April 29, 2012 04:50 PM
Rainmaker
117,220
Sara Goodwin
Portland, Oregon Appraiser
Ashcroft & Associates

You very eloquantly said 'duh' without saying 'duh' - kudos!

May 08, 2012 12:13 AM
Rainer
20,126
Alisa Delice
Realtor & Certified Appraiser Luxury, FHA, 203k, H
East Coast Valuations / W.F. Chesley Real Estate

Thank you for the comment Sara - I see another appraiser up working into the wee hours of the morning :)

May 08, 2012 12:16 AM
Rainmaker
117,220
Sara Goodwin
Portland, Oregon Appraiser
Ashcroft & Associates

Well, I do have some odd hours, but I am Pacific Time Zone, so it wasn't nearly as late as you!

May 08, 2012 06:34 PM
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Rainer
20,126

Alisa Delice

Realtor & Certified Appraiser Luxury, FHA, 203k, H
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