Redlining? Where Do I Begin?

[Joyce Potts]

Who signed the report? Evidently someone is signing you reports without reading them. Apears to me your a Trainee NOT getting good training.

PS Foriegn Investors is VERY acceoptable in this rapidly changing world.

Karl,

With all due respect, I think this trainee was trained pretty much the way the supervisor intended. That's primarily what's wrong with the overwhelming number of newer certifieds and trainees today. They weren't taught to appraise, they were PRIMARILY taught to hit a number and write a report with the least amount of red flags to underwriting.

And for everyone else, spare me the arrogance comments, I'm well aware of popular opinion.

 

[Alison Swain]

In this case, it doesn't sound to me like the mention of Venzeulan buyers was meant to be a racial comment. Rather than be offended, learn from the points the reviewer has made (which are seemingly valid).

You can't know it all from the beginning. If you're like me, you are being exposed to market forces you've never seen before in your relatively short career. I started in 2001 and up until this year, I had always appraised in an appreciating market. This is a whole new ball game. Adapting isn't always easy, but we have to be willing to learn from our mistakes. There is a lot of good help here.

Learn from those who are willing to help --- some graciously and some .... well, not so much. You'll have some reports out there you wish you could take back --- just learn to listen to the experienced voices (not so easy always, but you'll find they turn out to be right more often than not).

Good luck.

 

[Joyce Potts]

In this case, it doesn't sound to me like the mention of Venzeulan buyers was meant to be a racial comment. Rather than be offended, learn from the points the reviewer has made (which are seemingly valid).

You can't know it all from the beginning. If you're like me, you are being exposed to market forces you've never seen before in your relatively short career. I started in 2001 and up until this year, I had always appraised in an appreciating market. This is a whole new ball game. Adapting isn't always easy, but we have to be willing to learn from our mistakes. There is a lot of good help here.

Learn from those who are willing to help --- some graciously and some .... well, not so much. You'll have some reports out there you wish you could take back --- just learn to listen to the experienced voices (not so easy always, but you'll find they turn out to be right more often than not).

Good luck.

Maybe he was doing a refi vs. a foreclosure! How's that for gracious.

 

[Lloyd Bonafide]

Would "foreign investors" been acceptable?

"Foreign investors" would have been fine, or even just "investors."

The bottom line is, the reviewer found the report to be unacceptable, for good reason.

"Unacceptable Appraisal. Report fails to address declining market conditions in Miami and excessive number of similar units in the building that are listed at asking prices below the appraised value.

The reviewer had to do a lot of work and a lot of research, which is stuff that the original appraiser should have done.

In an obviously declining market, to ignore many listings that are similar or superior to the subject, that are priced well below your appraised value, is gross incompetence. A reviewer may even suspect fraud.

 

[Kevin Keck]

Lastly, there is nothing wrong with identifying a particular group or nationality purchasing properties IF the information is factual and is not used to maximize or minimize property values.

USPAP 2006 says (page 7, line 250) "an appraiser must not use or rely on unsupported conclusions relating to characteristics such as race, color, religion, nation origin, gender, marital status, familial status, age, receipt of public assistance income, or an unsupported conclusion that conclusion that homogeneity of such characteristics is necessary to maximize value"

Mr. Garrett, no way would I go there despite what USPAP says. Odds are there is some Fair Housing Law that could be used to crucify you.

M SIR, in my mind redlining relates to lending practices. You should address factual matters regarding any declining prices within the complex. It would appear the underwriter/reviewer may have some valid observations.

 

[Chris Colston]

I

'm sorry, but if the condo project is predominately owned by foreign investors, more specifically, non-owner occupied

Might also be "second" homes. There are lots of Venezuelans with second homes in Miami. May be more so now that the election is over down there.

I'm more concerned that a TRAINEE is answering or trying to answer the reviewer. That should be the SUPERVISOR's job.

 

[Mike Garrett RAA]

Sorry, but I disagree and I base my comments on nearly 40 years as a real estate broker (lots of fair housing classes and seminars) and 28+ years of appraising. You are entitled to your opinion and I mine.

 

[Lobo Fan]

This brings up a new question? I thought our job was to provide a "snapshot" of current value and not make predictions about the future? I have a local market that is starting to really tube (Los Alamos). The Congress has the nuclear lab in the budget cutting crosshairs and they announced layoffs of 750 people effective January 1, 2008. There are over 20,000 people employed there so 750 is not a huge cut, but it is still a new phenomenon. It used to be that a LANL job was good until you retired. Not so anymore.

My point is that if a house is worth $500,000 today in Los Alamos based on recent comps and active listings, am I responsible when it goes to $350,000 next June? Or do I jut report the current situation as I know it? Declining market, bad local economic news, etc.

I hate it when they cite RealQuest as a data source. It is totally inaccurate here. They plug in the transaction price as the mortgage amount and add 20-25%. Makes for some interesting conversations with LO that pulled RealQuest AVM's.

 

[Karl]

What the question indicates is there are many out there being improperly trained & this reflects on the entire industry & why there are AVM's instead of Appraisers getting the assignments. Wirth the information off the news channels I could do an Appraisal of cvondo's in Florida from here in AZ & probablly be much more accurate than what this Trainee produced.

Now back to my question with more detail how long has the Appraiser & what license does the Apprasiser hold, that is SUPPOSEDLY training you been doing this?? This answers to this will assist me in some research I am doing So I would actually appreciate an answer. I am one that thinks Trainees are needed to replace us that are leaving this field soon. I just want to see the training be more about appraising than filling in blanks.

Guess someone needs to do a 15 hour class on why there are addendums adenda's in the Appraisal software packages. This has beome more neccersary than a USPAP classs.

 

[PropertyEconomics]

USPAP 2006 says (page 7, line 250) "an appraiser must not use or rely on unsupported conclusions relating to characteristics such as race, color, religion, nation origin, gender, marital status, familial status, age, receipt of public assistance income, or an unsupported conclusion that conclusion that homogeneity of such characteristics is necessary to maximize value"

Mr Garrett,

What would happen if an appraiser has the SUPPORT behind the conclusions in this instance relating to national origin? Could it be included within the appraisal report? Would USPAP allow use of race, color, religion, national origin, gender, marital status, familial status, age, receipt of public assistance income, .. IF ... the information was well supported and documented????