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Discussion in 'General Appraisal Discussion' started by SmilingDog, Dec 4, 2003.

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  1. SmilingDog

    SmilingDog Member

    0
    Apr 22, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Where in USPAP does it state whether an appraiser's comments require to be subjective or objective?

    For example,

    recently I reviewed an appraisal that states "PERSONALLY I FOUND THE GROUNDS TO BE DISAPPOINTING - BUT THERE IS A GREAT POTENTIAL..."

    There were many such comments in the appraisal. It seems that our personal opinion should not become part of the appraisal. What if I started saying that the color of the house is ugly, or that the house is too dark, or that it smells like cigarettes... none of these would affect market value or would it?

    Once again... Where in USPAP does it state whether an appraiser's comments require to be subjective or objective?
     
  2. bobby jones

    bobby jones Junior Member

    0
    Oct 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Minnesota
    The "appraiser" must be a Democrat.
     
  3. Jim Bearden

    Jim Bearden Member

    0
    Feb 24, 2003
    Professional Status:
    Certified General Appraiser
    State:
    Colorado
    In my experience comment are to be based on good average efc not personal opinion and only if it affects value. I once did a reveiw about 3 years ago for a black owned bank in LA This MAI wrote the report for another lender and I had to reject it because of the language which was against all Fair Lending requirements. While it was likely not intentional you would have thought this guy still believed red-lining was legal.
     
  4. Stone

    Stone Elite Member

    12
    Feb 1, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Wisconsin
    While that is not my writing style, I do not think it is something to get worked up about. The appraiser simply appears to write in a more casual manor, similar to how he/she speaks. I do not see how personal opinion can stay out of it. Aren't we paid to give our opinion? It is definitely a little more casual than usual, but at least you can tell it isn't a boiler-plate comment.

    One of the best narrative appraisal writers I know has a very casual way of describing his properties. He hasn't done mortgage work in about twenty years, and I would imagine that if he were trying to put his thoughts onto a form (even in an addendum) they would come out something like that. But, the level of description he gives a property is probably the best I have seen. If my work were ever compared to his, that would make my day (year, really). I would love to reach the level of thoroughness that this person reaches, yet you would not likely teach someone to use his style of prose.

    This is based on the comments you provided above, there may be more parts that if shared would change things. I just don't think the description you mentioned is that big a deal. How was his/her work otherwise?

    Just my $.02
     
  5. SmilingDog

    SmilingDog Member

    0
    Apr 22, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    While I agree that we are paid for our "opinion of value" we are not paid to provide comments, suggestions or ideas that could be considered Fair Housing Law violations or biased. We are paid for UNBIASED opinions supported by factual data.

    We do not go into an inner city area and describe the grafitti or the gangs that live next door, etc.

    The comment "PERSONALLY I FOUND THE GROUNDS TO BE DISAPPOINTING - BUT THERE IS A GREAT POTENTIAL..." says nothing! What was disapointing, where there not enough roses? Was the yard full of dog droppings or something? It's a stupid comment, as was most of the entire report. It says nothing of the property, but does imply a great degree of unprofessionalism, or at least an "I-don't-care" attitude.

    If you speak casually, your report should not read casually. It is a professional report. I write all my reports as if they were being by a court. Someone giving me a report that sounds like a Bob Villa advertisement (no offense to Bob) is not going to be taken all that seriously and leads me to think... what side is the appraiser on? Are they providing a truly independent unbiased appraisal?

    The rest of the report was poorly written in the same manner described. The appraiser used over 9 comps. scattered around almost a 5 milie radius. While the area is semi-rural (another fact not mentioned) there were sales 1/2 mile or closer and more recent. The appraisal had sales almost a year old. The sales price range was almost 40-50% with HUGE adjustments.

    I'm just trying to find out what USPAP says about biased vs unbiased comments or subjective or objective.
     
  6. Stone

    Stone Elite Member

    12
    Feb 1, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Wisconsin
    OK. Exactly what in that statement is a violation of fair housing laws? I'm not sure that this is evidence of the appraiser being on any side at all. It hardly seems like there has been some sort of USPAP violation based on that quote.

    As for comp selection, etc that very well could be a different story. If the appraiser has been trying to hit a number, or has missed better comps, then by all means nail him/her. However, language like the type you posted hardly seems to violate any rules/laws. Is it how I would describe something? No. Is it unethical? Seems like a stretch to say so from what is quoted here. What did he/she say in the report that violates fair lending laws, or proves a lack of objectivity?
     
  7. SmilingDog

    SmilingDog Member

    0
    Apr 22, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    The comment posted was just one of many in the appraisal. While 1 comment is not in itself proof that there are any violations, taking all the comments, the way the appraisal is written, and the analysis of the sales used a different picture begins to emerge.

    Why make that statement? or other statements similar to that. Is the appraiser implying that there is a bigger problem? or is it personal taste? At what point do biased comments change the outcome of the appraisal?
     
  8. mbrunson

    mbrunson Sophomore Member

    0
    Jan 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Nevada
    This may get censored because of the word dumb, but I call 'em as I see 'em...

    I am floored that anyone would be dumb enough to actually put that in a report.

    Read the introduction to the Ethics Rule and the Conduct section of the Ethics Rule. The appraiser who made that statement is clearly demonstrating a negative bias toward at least one aspect of the property.

    At the very least, this is unprofessional conduct. How does the appraiser being "disappointed" demonstrate how the market reacts to the condition of the grounds?

    SDG

    Mike
     
  9. SmilingDog

    SmilingDog Member

    0
    Apr 22, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Thank you Mike. If you read the rest of the report you'd be amazed.
     
  10. Pine Tree

    Pine Tree Junior Member

    0
    Aug 19, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Maine
    Reporting an appraisal is just that.. Reporting.. Similar to journalist.. it's not about what we think it' about what the market thinks. "I" should never enter into it.

    Not many things more annoying than to read/watch a news report that is evident what the journalist thinks of the topic..

    Of course it's difficult to do this every time, but .. I don't care for Split Foyers. would never own one and certainly could not be persuaded to sleep in a basement bedroom.. Too creepy for me.. but can I appraise one? Yup..there are always plenty of sales for that style house.. And that does not disappoint me.. :rolleyes:

    Peace, Wendy
     
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