Posts

Why Agents Need to Share Low Comps Too; When Cat Pee Matters :)

Agents often share relevant comparable sales data with appraisers to help support value. B/c of this we often share basic appraisal guidelines with agents to ensure they share comps that appraisers can actually use. Comparable Sales Appraisers Can and Can’t Use is just one example from a past blog. Comps can’t be too large, too […]Read More

Why Appraisers Can’t Ignore Comps That Hurt Value

The 1990s were good and bad for appraisers. They were bad b/c appraisers had to use analog sources (books and printouts) to find comparable sales; they were not online. They also had to take analog photos and glue them to old fashioned paper reports. The 1990s were good for appraisers b/c there were no appraisal […]Read More

What Realtors Can Say To Appraisers- Anything; Comp Guidelines

Lenders are not ever allowed to communicate directly with appraisers. We are only allowed to order appraisals through our Appraisal Management Company, which in turn contacts the appraiser. Realtors, however, can communicate directly with appraisers and we highly recommend it. Realtors often ask us what they are “allowed to say.” Our answer is: “anything, as […]Read More

Unpermitted Space is OK – No Value; No Health and Safety Issues

One of our Realtors asked us about a house in Oakland with 1,800 square feet and 4 bedrooms and 2 baths (per MLS). The problem is that the county records indicate that the house has 1,100 square feet with 3 bedrooms and 1 bath. The house’s lower unit (1 bedroom and 1 bath) was built […]Read More

Criteria Required Before Appraisers Can Use Comparable Sales

Last week when we needed additional comparable sales to support an appraisal-rebuttal, the selling agent sent us a comparable sales from a nearby and significantly superior town. She told us to just arbitrarily make downward adjustments to reflect the superior location of the comps. Using this logic, appraisers might as well use Atherton or Beverly […]Read More

Market Is Hot! Appraisers Are Not! Valuation Issues?

Because the market is as hot as it is now in many areas, we are having appraisal issues. Many appraisers are too unmotivated or too ignorant to correlate to the “current” market by pointing out the number of multiple offers or by making a case for the use of pending sales for “comps”. We understand […]Read More