Who's Quitting?

[Kevin Mc]

We started two a days this week. I am back in the office right now and I do NOT miss it.

I don't miss two a days in the August heat. Man they sucked. Good luck on the new job Shane.

 

[agedaprsr]

I was recently the victim of a very malicious reviewer who among other things indicated to Freddie Mac that HUD closing statements, provided by the Title Company, are not an acceptable form of sale verification as they preempt County recordings; and only properties listed through MLS are acceptable as comparable sales for Condominium properties. In addition, as the properties being reviewed took place near the end of Florida's Real Estate Boom the reviewer indicated I should have been aware of, and foreseen the pending market crash. Finally, my units were Condominiums with an excess of fifteen to twenty recent sales (less than 30 to 60 days) of similar units with support provided by a minimum of twenty units, of similar size and utility, in nearby communities. The Review appraiser used detached Villas as comparables with the lowest valued sale, of seven months prior, utilized in four of the five appraisals reviewed.
My indicated value range was well bracketed, as I chose the lower to mid-value of the market; and as a number of the Review appraisers comments were almost comical in nature I responded with a simple letter of explanation to Freddie Mac. Assuming they would be fair in their process.
Shortly after sending my letter I was informed my appeal was denied and me, my firm, AND a registered Trainee was placed on the Freddie Mac exclusionary list. This is the first time in twenty five years as an appraiser that my work had been questioned (over time it has been subject to review and/or scrutiny only to be discharged) and to think one person can cause the demise of my business really ticks me off.
Even Companies that had utilized my services as a reviewer for years notified me that I was no longer eligible to work for them.
The end result is that I will retire a year or two before I had wanted, but what would their reason, and support, be for putting a Trainee out of business ? In addition, I would like to stress to other appraisers that if you have a grievance brought against you, no matter how frivolous it seems, get legal counsel and any help you can before responding.

 

[Tomasz]

I was recently the victim of a very malicious reviewer who among other things indicated to Freddie Mac that HUD closing statements, provided by the Title Company, are not an acceptable form of sale verification as they preempt County recordings; and only properties listed through MLS are acceptable as comparable sales for Condominium properties. In addition, as the properties being reviewed took place near the end of Florida's Real Estate Boom the reviewer indicated I should have been aware of, and foreseen the pending market crash. Finally, my units were Condominiums with an excess of fifteen to twenty recent sales (less than 30 to 60 days) of similar units with support provided by a minimum of twenty units, of similar size and utility, in nearby communities. The Review appraiser used detached Villas as comparables with the lowest valued sale, of seven months prior, utilized in four of the five appraisals reviewed.
My indicated value range was well bracketed, as I chose the lower to mid-value of the market; and as a number of the Review appraisers comments were almost comical in nature I responded with a simple letter of explanation to Freddie Mac. Assuming they would be fair in their process.
Shortly after sending my letter I was informed my appeal was denied and me, my firm, AND a registered Trainee was placed on the Freddie Mac exclusionary list. This is the first time in twenty five years as an appraiser that my work had been questioned (over time it has been subject to review and/or scrutiny only to be discharged) and to think one person can cause the demise of my business really ticks me off.
Even Companies that had utilized my services as a reviewer for years notified me that I was no longer eligible to work for them.
The end result is that I will retire a year or two before I had wanted, but what would their reason, and support, be for putting a Trainee out of business ? In addition, I would like to stress to other appraisers that if you have a grievance brought against you, no matter how frivolous it seems, get legal counsel and any help you can before responding.

Wow, very sorry to read this - I read a lot of books about Soviet History and your treatment and the manner in which your defense was cast aside is almost Stalinesque.

 

[The Sheriff]

What sales did you use then agedaprsr? All builder sales? I can give you numerous subdivisions in the Phoenix metropolitan area where the builder hand picked recent closed sales of their 20 recent builder sales which appraisers created the market with. A quick peek outside the subdivision demonstrated a market that couldn't sustain that type of activity. I wish all those appraisers would exit immediately as they have screwed up the entire market!

Even more interesting... I'm doing a Compliance Inspection Report on a vacant house in Buckeye, AZ. This salty appraiser of 20+ years rolls in with his trainee (who was in her 50's); they were way nicer dressed than I was - I was wearing shorts, flops, and collared shirt on a vacant house. As I'm waiting for the key to the property, the VA appraiser and his trainee get hand picked comps from the builder. We talk about business and he talks specifically about not adjusting for concessions or making time adjustments for any property that sold within three months (doesn't matter that the contract date is typically further out and the market decline in the area was 1.6% per month based on statistical data). I just came in low on our last three builder sales in that sub due to concessions being paid... I can only imagine why some of these sales closed.

RELS came out with their ridiculous narrative on how to value a new construction property. It still amazes me that appraisers are so in bed with builders they are afraid to call it like it is.

It sound like you sustained the builder inflated market for that condo complex with the original appraisers who set the ball in motion. Who cares if a 100-sales closed in a complex if none are market tested?

Knowing myself, I would have been that reviewer showing MLS market data discounting all the builder sales.

Maybe the biggest problem is the MLS. For appraisers post-2000, the MLS has been our biggest ally. We didn't have to search the county courthouse for closed sales back in the 1980s and 1990s to have three closed sales. The problem is... what type of marketing went into those closed sales? Could they all pass the smell test realistically?

Good luck in retirement. Unfortunately, we are only as good as our last report. This is a lesson learned that I will share with my staff appraisers - and what is sad about the whole story - it doesn't sound like you intentionally were number hitting for the builder - you just didn't know any better.

 

[Pamela Crowley (Florida)]

Investors flipping sales are always questionable now, especially in Florida and especially in condos and properties built since 2001.

 

[Kevin Mc]

I was recently the victim of a very malicious reviewer who among other things indicated to Freddie Mac that HUD closing statements, provided by the Title Company, are not an acceptable form of sale verification as they preempt County recordings; and only properties listed through MLS are acceptable as comparable sales for Condominium properties.

Without knowing the details, from what you are stating it sounds like the reviewer may have violated Stanard 3. Do you have a good copy of the review? Were there USPAP violations? If so, did you foward it all to your state board?

 

[The Sheriff]

Kevin... sounds like no MLS market tested sales were utilized in the original report... all builder sales. It has inflated value written all over it (unintenional as agedapsr might have been).

Maybe I'm reading his post wrong... but that was my take. Not all reviewers are garbage.

 

[Kevin Mc]

Kevin... sounds like no MLS market tested sales were utilized in the original report... all builder sales. It has inflated value written all over it (unintenional as agedapsr might have been).

Maybe I'm reading his post wrong... but that was my take. Not all reviewers are garbage.

Like I stated Sheriff, "without knowing the details". Half on my makret is non MLS, in fact there are huge sections of my market without MLS so I'll give him the benefit of the doubt. I will agree that if the report (and review) were brought to the attention of Freddie Mac there most likely were some issues.

 

[RitaB]

I'm staying in for now. Been in almost 4 years now-have enough hours for AL or even AR but since I don't need in my situation, didn't spend the time and dough to take it to the next level yet.

I also started originating loans almost a year ago. I don't appraise my own loans of course. It's been very educational and provides a little extra income.

If I had time to sell homes too, I'd probably try to squeeze that in.

 

[agedaprsr]

To The Sheriff

What sales did you use then agedaprsr? All builder sales? I can give you numerous subdivisions in the Phoenix metropolitan area where the builder hand picked recent closed sales of their 20 recent builder sales which appraisers created the market with. A quick peek outside the subdivision demonstrated a market that couldn't sustain that type of activity. I wish all those appraisers would exit immediately as they have screwed up the entire market!

I did use one sale within the grid from the builder. I used two from outside my subdivision with one being a conversion sale (not my builder) and one a re-sale. I supported my value with the remaining sales and pendings.

I probably did get caught up in all the other appraiser's sometimes inflated values. But sometimes it's not easy to avoid when the properties are selling at that sales price and there are additional buyers lined up to buy the property.