An appraisal practices board formed by The Appraisal Foundation is accepting feedback on a second draft of a proposal designed to advise appraisers on how to adjust comparable sales for seller concessions.
The board was formed by the foundation in July of 2010 to issue guidance on recognized valuation methods. One of its focuses is on how adjusting comparable sales for seller concessions should be evaluated. The second draft of the techniques proposed is now available for public comment.
“Once the board believes it has received all relevant comment on this topic, it may vote to adopt the material as official guidance from the APB. The board is also currently engaged in developing guidance on other topics,” the foundation said. “It is anticipated that exposure drafts will be forthcoming in the very near future that relate to these other topics. In addition, subsequent exposure drafts may include multiple topics for consideration simultaneously.”
Comments from interested parties will be accepted through Feb. 29.
Providing appraisals in markets where home values are declining remains a challenge for the appraisal industry and is another issue the board has studied. Issues include the method by which appraisers assemble data on market conditions and the extend to which distressed sales should affect the comparable-sales equation.
The Appraisal Institute recently said appraisers have wrongly gotten the blame for current market conditions. Appraisal Institute President Sara Stephens said qualified appraisers know how to appropriately account for distressed properties when conducting their home reviews.
Write to Kerri Panchuk.
