Accurate Group's Appraiser Selection Practices Expose Troubling Industry Tactics

[George Hatch]

In my experience a large percentage of all brokers are incapable of supporting their opinion with actual comparables. It's not necessarily that their conclusions are unreasonable, but rather that they don't know how to choose comparables or otherwise support their opinions with actual data.

I agree with you that appraisers *should* be more informed than most of the brokers in every assignment, and that requires a lot more research/analysis than spending 3 minutes to build a single MLS query starting at 6mo + 1 mile and selecting the highest prices on the list for the report. I'm just saying that the AMC appraisers everyone alleges are working for the lowest fees are no less capable of meeting the specs for the assignment as the non-AMC appraisers - many of whom are also not part of every community they work in. Whether they spend the time to work to that competency is a separate question because there's plenty of that not-working-to-competency going around on both side of the AMC fence.

 

[NC Appraising]

I was literally thinking of starting a thread on based on the appraisers experience.

Why and how did this become so negative? I am not saying pull the adjustment out of the clouds.

Without any data, I can tell you why homes in this section sell for more of the top of my head.

Other professionals use the based on my experience....because they have experienced it.

I just finished a report in a rural area. Based on my experience I know homes in one area sell for slightly more and another area sell for slightly less. But the data was sparse to non-existent to support my adjustments.

Sure I like tech and use tech. These tools can give you a number for an adjustment, but you should be able to spot when the number is bs and then explain it.

This is what boggles my mind with the new requirements to become an appraiser.

 

[djd09]

In my experience a large percentage of all brokers are incapable of supporting their opinion with actual comparables. It's not necessarily that their conclusions are unreasonable, but rather that they don't know how to choose comparables or otherwise support their opinions with actual data.

I agree with you that appraisers *should* be more informed than most of the brokers in every assignment, and that requires a lot more research/analysis than spending 3 minutes to build a single MLS query starting at 6mo + 1 mile and selecting the highest prices on the list for the report. I'm just saying that the AMC appraisers everyone alleges are working for the lowest fees are no less capable of meeting the specs for the assignment as the non-AMC appraisers - many of whom are also not part of every community they work in. Whether they spend the time to work to that competency is a separate question because there's plenty of that not-working-to-competency going around on both side of the AMC fence.

you must do alot of work of accurate...

 

[NC Appraising]

In my experience a large percentage of all brokers are incapable of supporting their opinion with actual comparables.

I recently got a cma from an agent. A very experienced agent that knew the market better than I. She lived in the pud.

Based on what I see, agents make to many adjustments and appraisers do not make enough.

Agents tend to make better adjustments for condition, amenities and quality. But there comps always tend to be superior...

I'm excluding newbie or part time agents.

 

[TerryRohrer]

Come in low....the first thing that they will research and complain about is if the appraiser is not from the area.

I cannot blame them.

Skippy the appraiser and the not so good appraiser, sorry, they are out there, has a business plan to hit the value and to make it work because they know that they cannot defend their work. Hit the value, make the deal go through, collect the check. Ofcourse if they hit the value, re agents do not care....or some honest buyers agents care...some really want to know the value to protect their client.

But appraisers cheering this narrative is why we can't defend the profession. Coming in low has become a defacto standard for "biased" or "unsupported" appraisal conclusions. Now that appraisers are using it as a reliable metric, there is not much hope.

 

[alebrewer]

This is why our credibility is in the shet tank with the public and re agents.

In my opinion, the reason our credibility is in the tank is because - for too long - appraisers refused to apply objective measurement into their analysis. It was too much work to learn regression, sensitivity analysis, grouped sales analysis, etc. For too long, we enjoyed the privilege of being right 'because we said so'. Then the information explosion happened and all of a sudden, the users of our services had the ability to see through the BS. And they called us out - and continue to call us out. And, instead of realigning our services, we dug our heels in. Sow the wind - reap the whirlwind.

 

[George Hatch]

The topic at hand is how a lender could possibly make an individual determination that the appraiser is competent to perform the appraisal assignment when they're engaging 100 appraisals a day.

Forget the out-of-state appraisers working on some desktop and stick to the in-person 1004s.

"They've had a license in that state for 15 years and we've already seen a dozen other appraisals in various areas from them without any serious difficulties. " ​

Is that a good enough process for vetting appraisers for competency?

 

[Mejappz]

In my opinion, the reason our credibility is in the tank is because - for too long - appraisers refused to apply objective measurement into their analysis. It was too much work to learn regression, sensitivity analysis, grouped sales analysis, etc. For too long, we enjoyed the privilege of being right 'because we said so'. Then the information explosion happened and all of a sudden, the users of our services had the ability to see through the BS. And they called us out - and continue to call us out. And, instead of realigning our services, we dug our heels in. Sow the wind - reap the whirlwind.

Be careful as some people on the forum could get really upset just for bringing this up.

 

[George Hatch]

Credibility (worthy of belief) is still judged by the users and is judged within the context of the intended use. Not in a vacuum or based on some external benchmark. Some users require more, some require less. Some assignments require more, some require less. There's nothing 2024 about any of that.

The real problem with appraiser credibility stems from not doing what they say they're doing. Being dishonest about what they actually did.

If an assignment allowed for it and I "comped" 6 properties and simply ranked the subject in the range without a single adjustment - and said so in my report - there's nothing Richard Hagar or George Dell or Mejappz could allege was misconduct. The quants could GFY if they didn't like it. But if I said I used matched pairs without using any matched pairs or used RA when I didn't use RA then that's always going to be dishonest on the objective basis.

In fact, for a while Fannie published and actually used an SFR appraisal form with no adjustments. So, never say never.

 

[djd09]

i mean really...an appraisal report is not the appraisal forum where you can hit the report button because some one hurt your feelings