12 Unacceptable Appraisal Practices from Freddie Mac
Here are 5:
- Reliance in any appraisal analysis on inappropriate comparable sales, or the failure to use comparable sales that are more similar to or nearer to the subject property without adequate explanation
- Use of unsupported or subjective terms to assess or rate, such as, but not limited to, “high,” “low,” “good,” “bad,” “fair,” “poor,” “strong,” “weak,” “rapid,” “slow,” “fast” or “average” without providing a foundation for analysis and contextual information
- Use of comparable sales data provided by interested parties to the transaction without verification by a disinterested party
- The use of inordinate adjustments for differences between the subject property and the comparable sales that do not reflect the market’s reaction to such differences, or the failure to make proper adjustments when they are clearly necessary
- Development of value and/or marketability conclusions that are not supported by available market data
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My comments: From Freddie Mac’s Selling Guide with links to more information. Nothing new, but good reminders.
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