Working with an AMC: Finding a Common Ground
Transcript of Working with an AMC: Finding a Common Ground
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Working with an AMC: Finding a Common Ground
Jennifer E. Schnell, SRA Senior Review Appraiser
The AMC Review Process
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The AMC Review Process
• What Does It Mean?
• The AMC Process
• The Cost / Benefit Analysis – Is this the Relationship for You?
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“I do not think that means what you think it means…”
What Does It Mean?
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“Appraiser has invoked an extraordinary condition.”
“Appraiser has employed an extraordinary assumption which has impacted her opinion of market value.”
What she said:
What she meant to say:
“Inconceivable!”
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What do you call a long sandwich with cold cuts, lettuce, etc.?
A. Sub B. Grinder C. Hoagie D. Hero E. Po’ Boy
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“I’d like to order a Cabinet.”
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“I’d like to order a Cabinet.”
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The AMC Process
• Engagement
• Order Tracking
• Review
• Delivery
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Engagement
• Electronic Acceptance & Scheduling
• Client Special Instructions
• Fees
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Order Tracking
“Why are all these people calling and emailing me?”
• Stalking?
• Harassment?
• Support for your business?
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The AMC Quality Assurance Process
Step 1: Appraiser submits a report
Client Special Instructions define the format and the delivery requirements.
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“What do you mean you are reviewing my report?”
Technical Review vs.
USPAP Standard #3 Review
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“The AMC is not my client. Why should I revise my report at all?”
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The most common error in an appraisal noted by AMC reviewers:
• Failure to comply with the client’s special instructions.
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Common technical errors
• Spelled client’s or borrower’s name wrong
• Did not sign the report
• Failed to comment on net and gross percentages that exceed guidelines
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Excessive Net (15%) or Gross (25%) Adjustments
Net Exceeds 15% - Revision Required
• “The best comparables were used.”
Net Exceeds 15% - No Revision Required
• “Due to the lack of recent similar sales, the adjustments in the sales approach exceed the desired 15%/25% guidelines. This was unavoidable.”
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USPAP Standard #3 errors
• State the type of value and cite the source of its definition
• Failure to report prior service(s) within 36 months
• Failure to report opinion of exposure time
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Anticipate to Avoid Revisions
19
Saves Everyone Time and Money
Comment! Comment! Comment!
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“Subject has a fish basement.”
“Subject has a Finished Basement.“
What she said:
What she meant to say:
“Inconceivable!”
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Top 10 items which need a comment
1. Are all of the Comparables within 1 mile?
2. Did all of the Comparables sell within 6 months?
3. Any of the Comparables of a different Design/Style?
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Top 10 items which need a comment
4. Do Comparables sales prices bracket the opinion of value?
5. Does the listing support the value opinion expressed?
6. Do the comparables bracket the site size?
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Top 10 items which need a comment
7. Comparables located outside the subject’s identified neighborhood boundaries?
8. Comparables 25% different as to GLA? 9. Comparables bracket the subject’s GLA and
room counts? 10. Any “across the board” adjustments?
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“Subject property has no utility.”
“Subject has adequate functional utility and
no inadequacies are noted in the floor plan.”
What she said:
What she meant to say:
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What do you call the level of a building that is partly or entirely underground?
A. Basement B. Cellar C. Basement only if it’s finished; otherwise, it’s a
cellar D. Cellar only if it has an outside entrance;
otherwise, it’s a basement
What Does It Mean?
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Delivery and Post Completion
“Inconceivable!”
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What do you call the area of grass that lies in the middle of some streets?
A: Boulevard
B: Midway
C: Traffic Island
D: Island
E. Although not my fairway, my golf ball is still in play!
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#1 Revision Requested by Clients
“Another Comparable, please!”
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Other Common Revisions from Clients
• “Comparables do not bracket for…”
• “Comparables adjusted differently for things characterized as being the same.”
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Other Common Revisions from Clients
• “Lack of comment on difference between address and USPS address”
• “Lack of a reconciliation statement” • “No comment about impact on marketability
for a feature not bracketed by the sales”
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So, is this the right relationship for you?
Cost Benefit
• AMC fees
• Volume
• Support
• Data Security Costs
• Client Preferences
• $$$
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Jennifer E. Schnell, SRA Senior Review Appraiser
Lincoln Appraisal & Settlement Services, LLC
401-831-3500 x114
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Questions?