A question for review departments

[Midwest Guy]

My area is fairly stable in most "Submarkets" there is no real evidence of decline. I have found the New construction has slowed down as there is less demand, but except for a new neighborhoods, I really cannot conclude that supply and demand are out of balance.

Of course, the midwest is not as subject to upward and downward trends as the coastline areas.

 

[Lobo Fan]

I have a question for the group. When you receive an appraisal to review does it include all the addendums? The last few I have received all refer to an addendum that was not included in the report I received. That and the photos are totally useless.

 

[PropertyEconomics]

Chuck .. did you call your client and ask if you got all of the report?

 

[Lobo Fan]

Yes, I did.

 

[Pamela Crowley (Florida)]

I have a question for the group. When you receive an appraisal to review does it include all the addendums? The last few I have received all refer to an addendum that was not included in the report I received. That and the photos are totally useless.

That sounds like the 'converted' appraisal reports, where they were sent in but 'converted' to something else along the way. Addendums and photos altered or missing, often the signature is missing or the signature page is blank.

 

[PropertyEconomics]

It sure does .. doesnt it Pam .. I had the EXACT same thought (along with a few others) when I read the question.
And HOW can you review that?

 

[Otis Key]

I have a question for the group. When you receive an appraisal to review does it include all the addendums? The last few I have received all refer to an addendum that was not included in the report I received. That and the photos are totally useless.

As PE said, call'm back and tell them that you're missing pertinent pages. I also agree with Pam, it does sound like an AMC (bet I hit that one on the head) hacked report so they may or may not have the other pages. As far as the photos, I'm sure, can't guarantee, that when it gets hacked that the pictures tend to get messed up also. I very seldom have gotten review assignments with good quality photos.

 

[Doug Wegener]

Good authority

I would have to post confidential e-mails to prove it to you, and Im
not going to do that.

An appraiser friend of mine contacted a major review department and asked them if they were seeing lots of sales concession adjustments in appraisals.. Their answer was "Hardly any".

In my market, 50% or more of the sales have significant concessions.
Most appraisers are not making adjustments for them. They dont do it because it is a time consuming process and because it might jeopardize their livelihood or because they are incompetent. Many are still marking stable for neighborhood trends.

Those that adjust for concessions or indicate the market is declining are likely not to get work from mortgage brokers. One major wholesaler does not make any loans on properties that are marked declining in the neighborhood
trend. You can be sure all appraisals going to them are marked "stable", or else a new appraisal is ordered.

Review departments that dont call appraisers on the lack of concession adjustments or marking stable when the trend is down are going along with
fraud.

Of course, you could post the evidence to substantiate your claim that it is not happening but I dont think you will. Id like to see the internal memo reminding reviewers to look for the absence of concession adjustments.

 

[Lobo Fan]

Sorry just getting back in. The photos were trashed because they had been faxed before they were scanned. I did not get an original PDF file. The missing addedum showed up after I called. Not sure what happened, but it was important. I'll bet the main report referred to the missing addendum at least 5 times. It made it a lot easier to understand.

It was still a POS appraisal. A new on-frame modular comped to site built. One comp totally fabricated. Legal and tax data was a mess.

That goes to the third party confirmation question. I would bet that 1/3 of all the appraisals I have reviewed have no county data, no AP number, no taxes. Just a blurb about non disclosure and not being available. I can get an AP number out of even the most inept assessor offices. Sometimes it is a chore. (The worst had to be Lea County) from my apprentice days. Taos is a close second, with San Miguel coming in third. Santa Fe county just updated their website so we can search by address. Woohoo!. Now we just have to get Sandoval County online and my life will be much simpler.

 

[Ultraviolet]

Review departments that dont call appraisers on the lack of concession adjustments or marking stable when the trend is down are going along with
fraud.

Of course, you could post the evidence to substantiate your claim that it is not happening but I dont think you will. Id like to see the internal memo reminding reviewers to look for the absence of concession adjustments.

Doug,

I can only speak from my personal experience and, of course, I can't disclose the entire review process on an internet message board!

An internal memo regarding sales concessions and declining markets isn't necessary because standard company policy is to get it right - the direction of the market and the value of the property. If there are concessions, they should be researched and disclosed. If the market is declining, that should be disclosed. Quality is priority number one - period.

I don't know how other companies work, but my point is that there are some out there who DO want to know.