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There are more unacceptable appraisal practices?! Really, just how many can there be? Fannie Mae has 16. Freddie Mac has 10. But no matter. There really is a benefit here! What, possibly could that benefit be? That benefit is once you know them, you can avoid them. And when you avoid them, your appraisals are more professional. When they are more professional, there is a far smaller chance of getting that letter from the state board. Sounds pretty good, don’t you think? In this podcast, we won’t cover all 16 or all 10. This is about Freddie Mac. Even so, we cover only Unacceptable Appraisal Practice #7. Why only #7? Because #7 is about adjustments. And that is a sore topic for many appraisers.
There are more unacceptable appraisal practices that just those covering adjustments. But because an appraiser’s qualifying education on them is so poor, there is reason to focus on them. #7 says to avoid inordinate adjustments. Freddie Mac is not really clear on this. It means to avoid making too many adjustments. Let’s face it: not every difference needs an adjustment. It also teaches us to make the adjustments that need to be made. But part of COMPETENCY is knowing when and how to make an adjustment, right? These are all important parts of an appraisal that is reliable, reproducible, accurate, and credible. We’ve got the chops to meet all those requirements, right? So, where do we go to learn about more unacceptable appraisal practices? How about these podcasts?
Here’s the link to Freddie Mac’s gig on more unacceptable appraisal practices. There are plenty of them. But when we know what to include and what to avoid, life can be sweet!