Bad Appraisers ?

[Gobears81]

I agree with the assertion that bad appraisers are unethical, incompetent, etc. Of course, this could change where someone was at one point a good appraiser but became quite terrible. I remember seeing an MAI appraisal of a 50% vacant building in which the appraiser used actual income, then took a 20% vacancy loss. The income cap approach on that appraisal was $250,000, while the other two approaches were around the $1,200,000 range. That was the last appraisal I saw of his and I believe he retired very shortly thereafter.
Another example that I can think of is taking shortcuts when a longer, more complicated path cannot be avoided. I did a report last week that I could have blazed through, but ended up spending double the time because of the configuration of the parcels.

I have learned a lot from appraisers who issued very slim reports-perhaps they don't convey their analysis well, but they know the process and their market like the back of their hand. Everything they said had meaning, although like Pete said, some of the valuation process was not fully discussed in the report. I have also seen appraisers who issued a 150-page report full of fluff. It read like a high school book report and I absolutely despised every page, with the value being a laugher also. Though there are flaws, I'd take the first appraiser any day.

 

[Mike Kennedy]

Mike, I didn't click on the link, but I will say I really agree with the above quote!

A client can LOVE, LOVE, LOVE you until (fill in a blank)

That's true with many businesses, but definitely applies to ours as well

When you get time - suggest reviewing the Opinions - excellent "read"

 

[Greenback]

The question itself is what I find to be intriguing..., "What is a Bad Appraiser?" I did not observe any replies. I feel as though the question and/or thought invokes an ethical standard, an aptitude involving competence and growth, as well as, a feeling of being content and happy. An individual's ethic may be at the top of the list. There is right and wrong rooted in personal, professional and casual life. There is right and wrong according to the Real Estate Appraisal Profession, Real Estate Market and Economic System. Aptitude is a word, in my opinion, that may reflect competence and growth (simultaneously); therefore, I will use the word aptitude to represent both competence and growth. Lastly, a Real Estate Appraiser, in my opinion, should be content; of good feelings; a sense of being happy as a Real Estate Appraiser (a person being confident enough to look itself in the mirror and believe, 'this is who and/or what I am,' ...with a smile)

I believe an individual may have a keen understanding of ethics, but at the same time, may lack the ability to perform as a Real Estate Appraiser, even with a substantial amount of education/testing and experience while being perfectly content with the work in front of him or her. An individual may not lack the aptitude to perform along with a substantial amount of education/testing and experience while being perfectly content with the work in front of him or her; however, this same individual may have difficulty understanding and/or comprehending ethics, thereby conducting itself professionally, personally and casually according to hi/her understanding. An individual may possess ethics and aptitude, but simply isn't content/happy. What affect/effect (if any) does a shortage of good feelings have on a Real Estate Appraiser's ability to perform ethically and with the necessary aptitude? An individual may not possess the ethics and aptitude, but is very content and overwhelmingly happy with the work in front of him or her. An individual may possess all three, none of the above, and (maybe) 1 out of 3 or 2 out of 3.

Can the above observation measure what a bad Real Estate Appraiser is or is not? Well..., maybe/maybe not..., I believe it is a decent generality that may assist in acknowledging 'bad versus good,' in my opinion, once the details in which it contains are observed and measured.

Of course, there IS Appraiser Independence; going beyond ethics/aptitude/a sense of good feeling. A merit and a culture defining the Independence of not only the Real Estate Appraiser - the Real Estate Appraisal Profession, BUT the Real Estate Market and its Systems. The Rules of the Game. I believe a good Real Estate Appraiser knows the "Rules of the Game" (acts on it) according to Real Estate Appraiser Independence (acting as). What makes a Real Estate Appraiser 'bad' in this regard?

If I may add (without encouragement for anyone to over think) in order to sum up all the above: common sense can be a beautiful gift when used often and with confidence. Without common sense, a person may have it all, but one day lose it all. No matter if the Real Estate Appraiser is 'bad or good.'

Sincerely,
Benji...

 

[factsandtruth]

To me a bad appraiser is someone who commits deliberate fraud or is so sloppy in their work they make serious errors. All of us miss something, and in doing so, we have some exposure to liability. Did we not notice the septic field surfacing. Did we not flag that slightly pink tinge to the water. Did you note the crack in the foundation. Did you see the leak stain in the closet and identify the source?

I no longer allow myself to be rushed, but back in the 2000s that was a huge issue with almost all the appraisers I knew working six days a week and long days at that. It is easy to miss something. And there are always a few folks whose judgment is suspect. They simply don't have good logical sense. That is something that is rarely correctable, and usually means that person should not take on the more complex assignments that lead them astray. I have a helper like that and learned to never send her out to do a complex job. She was good at inspecting it, but making judgments around comp selection and vetting the value, not so much. I had to step in at this moment.

There is a guy who is pushing for minimal qualification to become a lic. appraiser is 25 inspections. ...to be honest after two years as an appraiser I was still very naive but can you imagine after 25 inspections???!

 

[Adios]

While there may be bad appraisers, either incompetent or unethical (or both), it's bad appraisal reports that should concern the review appraiser.

And my friend at Fannie Mae stated that he didn't care if it is incompetence or fraud. As far as he was concerned the result is the same.

I don't agree. If it is incompetency, that can be cured with education and mentoring. If it is fraud, dispensary action should be taken --- criminal or at least remove them from the pool.

 

[factsandtruth]

Let your voice be heard by the rule makers. There is a push to let appraisers become lic. after 25 inspections. Follow the link below, they will allow you to delete your comments from the public site...

http://www.appraisalfoundation.org/...spx?hkey=5b393d7e-4ed0-4c45-bf13-21ed4e2d14c5

 

[bnmappraisal]

If it is incompetency, that can be cured with education and mentoring. If it is fraud, dispensary action should be taken --- criminal or at least remove them from the pool.

I agree with you here, Joan

 

[factsandtruth]

The deadline to comment is March 31st ...

 

[Terrel L. Shields]

I was still very naive but can you imagine after 25 inspections???!

If you don't know enough after 25 inspections to know when you need help, then you ain't gonna know it after 2,500 inspections. It isn't the number of inspections that really matters, it is the common sense of the person doing it. The 2000 hr. requirement is a poor measure of "quality" as well. Why not simple years of experience like basically every other profession?

 

[Joe Flacco]

I think bad appraisers appraise the data in the sales comparison approach grid rather than stepping back and looking at the property as a whole. They just match up the data and they must be the best comps.

It is incompetence if that is just what they know to do. It is unethical If they know better but do that because they need to rush out 2 or 3 reports per day.