Real Estate Appraisal Forum

appraisersforum.com logo
The Premiere Online Community for Real Estate Appraisers!
 Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
 
 
Go Back   Appraisers Forum > Real Estate Appraisal Forums > General Appraisal Discussion
Register Help Our Rules Calendar Archives Mark Forums Read


Closed Thread
 
Thread Tools
  #1  
Old 12-25-2004, 03:45 AM
Pamela Crowley (Florida)'s Avatar
Pamela Crowley (Florida) Pamela Crowley (Florida) is offline
 
Join Date: Jan 2002
Location: Wherever We Are Parked
State: Florida
Professional Status: Retired Appraiser
Posts: 25,254
Default

http://realestate.yahoo.com/realestate/sto...222/20041222701

Quote:
HOMEOWNER SHARES APPRAISAL EXPERIENCE

DEAR BOB: I especially enjoyed your recent item about appraisals. When we tried to refinance our home a few months ago, the mortgage company sent out an obviously novice appraiser. As you suggested, my wife handed her detailed information on several homes we knew recently sold in our neighborhood. We expected an appraisal around $475,000. To our shock, the appraisal came in at only $365,000. When I protested and demanded to see a copy of the appraisal, the appraisal company owner hung up on me. But our mortgage broker then said he would pay for a second appraisal from a different appraisal company. The second appraiser was much more professional, welcomed our comparable home sales information, and the second appraisal was for a very acceptable $460,000. How can two licensed appraisers be $95,000 apart on the same house? Richard T.

DEAR RICHARD: Appraisal is an art, not a science. Appraisals are the weakest link in the home mortgage business. I have no clue why that first appraisal was so far below the amount you and the second appraiser valued your home.

Unfortunately, bad appraisers often go the other way and over-appraise home market values, enabling fraudulent mortgage lending to occur.

Faulty appraisals were a major cause of the savings and loan industry collapse a few years ago. The reaction was state licensing of appraisers. I was a big supporter of appraiser licensing to improve competence.

But the current federal USPAP appraisal rules are so complicated it is impossible to fully understand them. When I hear about appraisal scams, I often wonder why good people want to be appraisers.
__________________
All that is necessary for the triumph of evil is that good men/women do nothing.
Fight Back!
Sponsored Links

  #2  
Old 12-25-2004, 04:57 AM
Julio E. Sune, Jr. (FL)'s Avatar
Julio E. Sune, Jr. (FL) Julio E. Sune, Jr. (FL) is offline
 
Join Date: Jan 2002
Location: Miami, Florida
State: Florida
Professional Status: Certified Residential Appraiser
Posts: 1,575
Default

When I hear or see bad advise like that, I understand why a FOOL can become a columnist.

  #3  
Old 12-25-2004, 06:43 AM
Chris Colston's Avatar
Chris Colston Chris Colston is offline
 
Join Date: Jul 2003
Location: East Central Florida, Space Coast
State: Florida
Professional Status: Certified Residential Appraiser
Posts: 5,442
Default

At least he didn't advise the questioner not to pay or to stop the check. That's his usual tactic.

I also think he's recycling questions and answers. That one seems to be an oldie but goodie.
__________________
Chris
  #4  
Old 12-25-2004, 09:04 AM
Non Sequitur's Avatar
Non Sequitur Non Sequitur is online now
 
Join Date: Feb 2002
Location: Swamp Land
State: Louisiana
Professional Status: Certified Residential Appraiser
Posts: 7,405
Default

So what's wrong with what he wrote? It seems a trainee (novice?) was sent un-supervised on an assignment. A complaint that is not new to forumites.

He advises that appraisal (sic) is an art not science, is the weakest link in the process, but says he has no idea why the first appraiser differed from the HO and the second appraiser.

Putting the "weakest link" (an arguable point) aside, it apears Bruss hangs out in the forums.

He then writes;

Quote:
Unfortunately, bad appraisers often go the other way and over-appraise home market values, enabling fraudulent mortgage lending to occur.
Themes of more threads than I would care to count.

Quote:
Faulty appraisals were a major cause of the savings and loan industry collapse a few years ago. The reaction was state licensing of appraisers. I was a big supporter of appraiser licensing to improve competence.
Is he wrong?

Quote:
But the current federal USPAP appraisal rules are so complicated it is impossible to fully understand them. When I hear about appraisal scams, I often wonder why good people want to be appraisers.
If Bruss posted this as a sock puppet, many here would want to pin a medal on his chest.
__________________
No White Flags! Team Gleason
  #5  
Old 12-25-2004, 10:28 AM
xm39hnu xm39hnu is offline
 
Join Date: Jul 2003
State: Florida
Professional Status: General Public
Posts: 4,338
Default

Agree with CLedet. I didn't see any actual bad advice or inaccuracy in Bruss's answer. He's been wrong so much and so egregiously in the past that we're prepared to assume the worst.

The HO's statement "obviously novice appraiser" is subject to interpretation. How does the HO know the appraiser's level of experience? But Bruss, for once, didn't do anything wrong.
  #6  
Old 12-25-2004, 10:44 AM
Linda M Lynch Linda M Lynch is offline
 
Join Date: Dec 2002
Location: Madison, Wisconsin
State: Wisconsin
Professional Status: Licensed Appraiser
Posts: 317
Default

The weakest link is loan officers who are so hungry for a commision that they will "appraiser shop" until they find one that will spew out the number they want instead of wanting an honest appraisal with honest value.
  #7  
Old 12-25-2004, 10:48 AM
Elliott's Avatar
Elliott Elliott is offline
 
Join Date: Apr 2002
Location: Pumpland
State: Oregon
Professional Status: Certified General Appraiser
Posts: 11,139
Default

Bruss, wrong or right?

There but the grace of god could be my story...with a few twists.

So I get a request to do an appraisal with a "if it isn't going to
be at least $650,000, give us a call" request.

So I, the inexperienced appraiser of 20 years, go out, inspect the
property, take a few photos of new comparables in the
neighborhood and say, "cryp".

I call the MB and say, well, there are two sales that have
sold for $450,000 and $480,000. MB says, "Well that doesn't
make sense, it was appraised for $650,000 a year ago,
are prices going down?

So MB has decided to go back to Skippy and get the "value"
they got from him last year. I charge for my time and effort.

To add insult to injury, the MB says the owner claims he never
let me in the property and isn't going to pay for the inspection.
I tell MB, the owner told me where the house key was and that's how
I got in.

Seems to me Bruss is just an appraiser bigot. I'd expect him to
blame Fannie's current troubles on appraisers too.

elliott
  #8  
Old 12-25-2004, 10:59 AM
Ray Miller's Avatar
Ray Miller Ray Miller is offline
 
Join Date: Feb 2002
Location: Southwest Wisconsin
State: Wisconsin
Professional Status: Licensed Appraiser
Posts: 12,000
Default

I go down this road every week with lenders and home owners. How they had to get a better appraiser to get the value they needed.

Then two three years down the road I get the subject for REO or for a sale.

The average home owner for some reason has been educated that an appraiser is good only if they get value needed for the property. Most I talk with feel it the appraiser job to find comparables some where in the world that will give them the fix they need.

Flip it over and I have found a lot of appraisers feel the same way. Get what they need. Look at the big picture. Not just the neighborhood. No ones going to come to your door with a warrent for your to go to the big house.
  #9  
Old 12-25-2004, 11:02 AM
leelansford leelansford is offline
 
Join Date: Mar 2002
State: Illinois
Professional Status: Certified Residential Appraiser
Posts: 13,559
Default

The only thing that Bruss has wrong is in regard to the USPAP being difficult to understand. USPAP is not too complicated to understand. All that an appraiser need do (or be) is:

1) Competent

2) Ethical

c) Don't make any significant errors or omissions.

It's really quite simple.
__________________
Lee Lansford, IFA
"My opinions & my opinions only!"
  #10  
Old 12-25-2004, 11:04 AM
DB's Avatar
DB DB is offline
 
Join Date: Apr 2003
Location: The Great State of Tennessee (Mid-TN)
State: Tennessee
Professional Status: Certified Residential Appraiser
Posts: 11,204
Default

The last several REOs that I have done have had one thing in common. The sales were less than 1 year old. That is simply amazing to me. I understand, better than most, that things happen and can change suddenly, but to get to the point of being able to buy a home, and then to lose it in less than a year, seems to me that there was some funny business on the front end. Folks were slid into a home that they couldn't afford, likely 100% + financed and then left to flounder with the reality that they couldn't really afford it in the first place.

Not sure how this can be blamed on trainees, but where there is a will there is a way.
Sponsored Links

Closed Thread


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump




Copyright © 2000-, AppraisersForum.com, All Rights Reserved
     Terms of Use  Privacy Policy
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com

Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
Partner Sites:
AppraiserUSA.com - National Appraiser Directory AllDomainsUSA.com - Domain Name Registration
DeadbeatListings.com - Deadbeat ListingsAppraiserSites.com - Web Hosting for the Professional Real Estate Appraiser
Find FHA Appraisers - FHA Appraiser Search Commercial Appraisers - Commercial Appraiser Search
Relocation Appraisal - Find Relocation Appraisers Domain Reseller - Business Opportunity
Home Security Buzz - Home Security Info Radon Testing - Radon Gas Info
My Medicare Forum - Medicare Info Stop Smoking Help - Help Quitting Smoking
CordlessPhoneStore.com - Great Cordless Phones AndroidTabletCity.com - Android Tablet Computers

Follow AppraisersForum.com:          Find us on Facebook            Follow us on Twitter


All times are GMT -5. The time now is 03:58 PM.

SiteMap: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93