I had one of these about a week ago. "Prior report indicates a much higher value. Please review your sold comps as compared to sold comps #1 and #2 from prior. Prior also indicates 50% less value per acre for adjustments."

Subject: 2,000 GLA on 40 acres with no out structures. The land had no current crop.

Prior Sold #1: 3,000 GLA, 20 acres, 2 year old 4,800 s.f. barn with power and water, 4,000 s.f work shop, pastures, fenced and cross fenced, corrals, etc.

Prior Sold #2: 2,500 GLA, 20 acres of which 19 acres were a producing walnut orchard, 5,000 s.f. harvest shed, 2,100 s.f shop, etc.

I valued the land at $3,850 per acre (based on county tax information and surrounding properties). How the other agent based value at half value, I have no idea.

I also had a prior sale in my report that closed escrow on 8/2010 within $8k of suggested value. And, this comp was located on 40 acres.

It appears prior report was at least $200k higher than mine... Agent made no adjustments for improvements....duh.

I added my comments to the report and it flew through QC.

Rural properties (farm/ranch) are completely different versus in town residential. If you don't know the difference, then stay away from this type of BPO.

I wasn't mad at QC for questioning my order. They were just doing their job. Time consuming?.....Yes. Did I get paid extra for my time?......No. It's just part of the job, like it or not. Even with my lower value, the bank is still in a $100k+ positive position.

I have one I need to address this afternoon. First QC'er said, in stable market, client expects to see gradually lowering value with add'l days on market. So I changed the report to show gradually lowering value.

2nd QC'er said, "You have indicated that the market is stable, yet your suggested 90/120/180 day prices for the subject suggest a decreasing price over time."

WTF?

Please put in writing what you want me to say;
I'll stick it in and do it your way;
We'll do what's necessary to stop your whine;
But then it will be your opinion . . . . not mine.

Nice.

edit

There once was a BPO I submitted.
I followed the guidelines that were listed.
But not good enough.
QC treated me rough.
So take it or leave it I insisted.

I could never understand the value trends over time, especially with the Fvvcore folks.

I would think that if the average DOM in market was about 90 days the value would be:

60 day highest value, 90 slightly lower, 120 even lower.

Value would tend to always decrease over time, especially now.

But others argue that duration increases exposure to a larger segment of the market and heightens the probability that Mr. Right will link up with the offering and pay more than someone in the group who happens upon it a shorter period of time.

I think our problem is that market trends tend to be self perpetuating. Appraisers project a continually declining curve during bad times . . . and a forever optimistic upward tilt during the heyday.

No one ever wants to be the first to contradict the current market trend.

Third QCer said first QCer was right. I didn't need to make additional changes.

Rodney King should give them a lesson . . . . "Why can't they all get along ?"

At least they should all sing from the same hymnal !

So how did you structure the appeal process to a higher authority ?

I got an email today from a QCer. Wants me to use a new Sold 3 comp that they recommend. Problem is that was the comp I already had. So I open up the order and hit submit. Have not heard back since. Must have come from the head MORON.

A while back, I had a QC manager shoot me an email and complained I was using "canned comments". One of which stated, "This comp is equal in GLA to subject. No other data available in MLS". Apparently, she didn't believe me as per her next email. At that point, I sent her copies of the MLS data sheets. I stated, "Based on this data, what would you use for comments? Please advise....". I never heard back from her, but, I no longer have QC issues in regards to "canned comments".

What about this one: The client want all comps within 1 mile.
Please QC, dont you think that if I utilized that comp is because there is not any other valid comp around, the one within 1 mile is 50 years older...they responded, use that omp and make an adjustment per age..Gone 30K age adjustment, end of the issue...

CC just dinged me due to lacking three sold comps within a 1/2 mile on a townhouse. Don't they read the newspaper? It shouldn't be news to anyone that the condo/townhome market in Florida is horrendous, and finding three sales within a 1/2 mile isn't going to happen in many cases.

I love CC, but the customer needs to get real. My original report comments on my reasoning of out of neighborhood sales. What am I supposed to do, make up comps?

Go back and get a comp from the townhouse community, even if you have to go back a year, and adjust for time.

When you pull from all over, you've failed to prove that's the value of the subject community. They may have margarita fountains and free topless car wash services for their residents which affects values even though its comparable to other townhomes in terms of size, age and condition.

I respectfully disagree....

Same complex mirror image list comps clearly display what the complex will not tolerate in terms of price. I had one sold comp within the development that verified the legitimacy of list comps. CC wanted two other sales from within the complex which simply do not exist.

It's my BPO, and I am not going to use dated sales with asinine downward time adjustments just to make some bozo in QC happy. The two other sold comparables used that were between one to two miles from the subject's location better represent the current market trends of the townhome market in this area. Mirror image same complex listing comparables confirm very limited recent comparable townhome sales data for this area of town.

It is what it is..........

Interesting takes - Brad I'm having a hard time understanding exactly what your first sentence means - that isn't anything I've learned or have experience with.

But time vs distance is often debated, and IMO there is no single answer due to the other factors that are almost always there.

Most of the time 'I' would go back as far as a year - especially in the recent year market conditions, rather then go outside of the 'neighborhood' of the subject. I had always heard the 3 most important factors in real estate are: location, location, location.

'But' ~ unless I had personal knowledge of the market and comps available, and I was QC, I would probably rephrase my comments by giving directions of what I prefer to be done and what order. Such as: sold comps 2 is outside of 1/2 mile radius of instruction 'and' crosses 2 natural barriers. If necessary please go back in time as much as 1 year for solds in the same complex and then if need be use comps without the need to cross major barriers such as rivers, railroad track, interstate, etc. Thank you.

But as far as what Brad did - it is his call as he has his boots on the ground in that area.