Geographic Competence

[Truett Neathery]

Geography

Well the state of Wisconsin figures I should only cover my county and those contigous to me. That would be a total of would be a total of 4 rural counties. Not the 18 that I currently cover and have data bases for all of them. If I was left to those four counties, I had a grand total of 9 appraisals in them the past year. Most of the Sauk county is grab by the Madison crew, same for the Adams county. They will drive 50 to 90 miles where I only would need to drive 5 to 10 miles. The monroe county appraisals are grab by the La Crosse, WI appraisers, (Never mind the ranch is in Monroe County) and Madison crew again as it is cut by I-90 and I-94 and makes for a fast trip.

But I don't think I would want to do the norther part of the state or the NE or SE part of the state or the NW part of the state. I have associates that cover those areas.

I could make the 500 mile trip to KC, Mo and appraise there. After all I use to live at Pleasent Hill, Mo. and Harrisionville, Mo. as well as Judon, Mo. Not counting me being raised in the Missouri Ozarks. Or may be Dragoon, AZ, Browning Mt., Dalhart, Tx, Nickerson, Ka, Grand Island, NE, Rifle, Co. I know all those areas well.


I think you can study the data, talk with the realtors and real estate offices, court houses and soon know the market in any area with proper research and data. The thing is just doing it. Many don't.

That's the problem - digging up the data and the implications of the true market. True, most would quote a fee that would not compensate them for the research required. The fact is , many LOs are trying to get out of residential lending and are going into commercial and industrial. One commercial appraiser said he got a comp search request for a Bar!!
tn

 

[mdtulips]

Oh my...

One of my offices is 10 minutes from Orange County. I have no geographic competency there because I don't go there. But, if one of my best clients begged and pleaded with me to do a job there, I could, and would, come up to speed in a fairly short period of time to complete a credible report.

A good appraiser will figure it out. A bad appraiser would jack-up an appraisal on his street...

That is just sooo true. I wouldn't be so quick to judge an appraiser because their office address is in a certain city/county. I travel frequently between San Diego, OC, and Riverside because I have numerous relatives/friends who reside in these counties, but since my parents live in OC...I use that as a second office and am well aware of market activity in their neighborhood/city. Sometimes you just don't know the whole story or background about that appraiser's market area experience/knowledge.

 

[Ken Youngkrantz]

Iwould agree with Truett. I did a review of an appraisal on a property here in Bakersfield last week. The original appraiser was from 135 miles away. The people had bought the house in June of 2007 for $362,000 and were refinancing it in October. Refi appraisal valued the house at $440,000. Original report stated the "increase in property value best reflects current marekt conditions". Neighborhood market conditions section stated Market conditions have stabilized in the southern california housing market. A detailed study of the neighborhood shows prices in that neighborhood have declined 12% since the first of the year. Either an appraiser who didn't know what he was doing or an appraisal done by a trainee and signed off by the supervisor. Who ever did that appraisal had no idea what so ever what the market conditions are in Bakersfield. This is a big part of the problem with this profession.

 

[Jim Hill]

Pack your suitcase!

I have also talked with appraisers who are driving 500 miles to do an appraisal and I thought it was crazy two years ago when they told me this story.

I was in a CE class with many other appraisers and when we talked on a break I could not believe how far they were driving.

I am located on the west coast of Florida near Clearwater and the thought of drving to either Miami which is about 4 hours each way or Jacksonville which is about 3 1/2 hours each way is kind of crazy and they were splitting the commission!!!!!!!!!!!!!!!

At first I really thought they were just kidding but the more we talked I could not believe the stories they told me about being on the road for days at a time and pulling over to the side of the road to complete reports and then find a WiFi signal somewhere to send them back to the office.

In some cases they would only drive this far if they had two or three appraisals in a certain area.

How many appraiser's are doing this same thing is any ones guess but I sure hope this slow down does not last past 2008 or we just might be driving a 1,000 miles to stay busy.

Jim Hill

 

[Vermonter]

Many of the AppraiserUsa listings are the company listing, even though the individual is listed. I know of a one listed locally that has fee split appraisers that cover different areas.

But just for the record, I personally cover 10 of the 14 counties in my state. Rarely drive less than 50 miles for 1 assignment and comps are rarely within 1 mile. Market changes happen at a snails pace, so it's not that difficult to keep up.

Granted, this isn't San Diego or San Fran.

And it's a lot more fun driving 100 miles on roads like this-

 

[Joker]

I could tell fairly quickly whether those comp checks were in range or not.

PLEASE tell me you are joking!!! :new_snipersmilie:

 

[Mike Boyd]

That's the problem . One commercial appraiser said he got a comp search request for a Bar!!
tn

That would be easy! Compare the volume of booze sold, the number of drunks tossed, the number of fights and then reconcile the "three approaches." LOL

 

[Don Clark]

Sometimes it does catch up with appraisers:new_llying:

http://www.dpor.virginia.gov/regulantlookup/disciplinaryactions/pdf_orders/2006-02416_4001001799.pdf

Take your chances. You might get by with it and you might not.

Lack of geographic competency, IMNSHO, is one of the biggest problems we have today. Problem is getting the states to truly address the issue.

 

[Josh Shapiro]

I offer services throughout Florida, Georgia and Nevada. I also employ Certified Appraisers in different counties throught Florida and Licensed Appraisers in multiple counties in Georgia and Nevada. So whay can I not do this? If I am not driving 4 hours to an appraisal appointment, but sending my appraiser that lives within 20-30 miles, I do not see why I would not be able to advertise this!

 

[Don Clark]

I offer services throughout Florida, Georgia and Nevada. I also employ Certified Appraisers in different counties throught Florida and Licensed Appraisers in multiple counties in Georgia and Nevada. So whay can I not do this? If I am not driving 4 hours to an appraisal appointment, but sending my appraiser that lives within 20-30 miles, I do not see why I would not be able to advertise this!

Why not just cover the entire USA, and, maybe throw in the Virgin Islands, Guam, and Puerto Rico?

And, do you attest that you "Actively Supervise" all these locations? How about license? Are you also licensed in all those locations? If you should have to review the work of one of your appraisers, do you have the geographic competence to do so? Jus asking