Blind Squirrel and Acorns

[NLCApprMgr]

I have seen a few appraisals come across my desk where the appraisal development is sorely lacking, but I have a difficult time contesting the value conclusion. This leaves me in a quandary. Is there anything gained by going through the review process, request changes from the appraiser, when there is no change in value? As a fee appraiser, are you as accepting of an appraisal review where there is no value change, or do you just think the reviewer is justifying their own pay?

 

[J Grant]

Each section of the rearview form asks different things, and the question about whether reviewer agrees or disagrees with value opinion is one of them.

So yes, answer each questions and address each section on its own merits. An appraisal is not just about the value opinion, it's about developing and reporting information about the subject property and market conditions/neighborhood that is relevant, factual, and reflects market conditions. A lender or client may have made different lending decisions or other decisions had they been made aware of things lacking or deficient or misleading in an appraisal, apart from the value opinion.

Thus, if the appraiser marked "stable", and it is clear upon review that supply/demand or prices were declining, or rising, or supply/demand not in balance etc, then answer that question and address what was deficient in report.

I don't nitpick when I review , but if a section of OA is contrary to facts or lacking in information that is relevant etc then it has to be addressed re what each section of review form asks about.

 

[J Grant]

Keep in mind that your appraisal reviews might also be reviewed at some point. So if your review is deficient, you will be in the hot seat for it... If a review fee is not sufficient, don't take the work. Many AMC's are paying low fees now for reviews, which stinks. If the fee is accepted, once you accept the assignment, you have to complete it properly.

I don't believe in a reviewer trying to find something wrong with a report just to justify their fee or show they did something. On the other hand, the review asks about a number of items about original report that have nothing to do with value, and they have to be addressed one by one.

 

[Tim Hicks (Texas)]

Stick to the facts, the review is about the entire report. If the value is reasonable you still may need them to correct material facts. If it is just because they do things differently than you, then the problem may be with the reviewer. I sense you have not done many reviews in your career. Think about how you would feel if some more experienced (there is always somebody better) was nitpicking how you do things. If you made a material fact, you would happily correct it, it is just some difference in style, you would be furious.

 

[Tim Hicks (Texas)]

I noticed you abandoned your other two topics already. How long before you lose interest in this one when you don't like the responses?

 

[J Grant]

Typically, the reviewer does not "request changes" to an original report. (unless that is part of the assignment)

The review will address, section by section , items in original report, and if reviewer finds the info under review contrary to fact, or deficient /misleading, the reviewer addresses that in appropriate section of review.

It is up to client to ask that changes, if any, be made to original report .

 

[Michigander]

Strictly speaking a review relates to the quality of the work that is under review. It relates to an appraisal or an appraisal product of some sort, not to a BPO or an agent analysis or an AVM.

As the review relates to quality not value then why not? If you need a value, that is an appraisal as well as the review. So yes, if you are concerned about the quality regardless of the value, send it out for review!

 

[Peter LeQuire]

I have seen a few appraisals come across my desk where the appraisal development is sorely lacking, but I have a difficult time contesting the value conclusion. This leaves me in a quandary. Is there anything gained by going through the review process, request changes from the appraiser, when there is no change in value? As a fee appraiser, are you as accepting of an appraisal review where there is no value change, or do you just think the reviewer is justifying their own pay?

In the past, I've spent - wasted - a lot of time critiquing appraisals for which I thought the reports sloppily done, the research superficial, the analysis ridiculous, the comments canned, the grammar atrocious, and after all that effort, wound up at essentially the same value conclusion.

The lenders concern was the value conclusion, not the USPAP compliance or the neatness of the report.

Your question is in the same vein as those that began other threads. I'll go back and repeat: if you're not happy with the quality of the reports the AMCs your firm is using are delivering, you need to have a prayer meeting with them (if that is, in fact, your area of responsibility) and start ramping up the qualifications of the appraisers that doing your work. It's also an opportunity for you to be an immediate agent for positive change in your new position: take your concerns to upper management and offer a plan - tactical if not strategic - to improve the quality of the appraisals your firm is relying on to make lending decisions.

It may be a fee issue between the AMCs and the appraisers they have in their rotation. But, at the end of the day, your firm is the one with the gold and the one that ought to be making the rules. To passively continue to accept appraisals you think are defective is not, IMO, a way to property serve your employer or your long term prospects with it.

 

[togatour]

I have seen a few appraisals come across my desk where the appraisal development is sorely lacking, but I have a difficult time contesting the value conclusion. This leaves me in a quandary. Is there anything gained by going through the review process, request changes from the appraiser, when there is no change in value? As a fee appraiser, are you as accepting of an appraisal review where there is no value change, or do you just think the reviewer is justifying their own pay?

Not sure how you can not contest a value "conclusion" when the appraisal development is lacking?? Just because the "number" on the report may be similar to what a properly developed report might suggest, an Opinion Of Value that is not properly developed, supported, and reconciled, is unreliable no matter where it stacks up to your opinion. No? Would there be no value change if the GLA is off by 200sf.? If the property had significant repair items that were not reported? Did you inspect these properties that you have reviewed? If there are serious deficiencies in the report, as you suggest, how can you rely on the rest of the report enough to say that you agree with the value conclusion or that there would be no change in value??

I would be worried about someone reviewing your "reviews"

 

[J Grant]

Is the OP reviewing appraisals , or wondering about reviews that identify problems in a report yet agree with the value opinion?