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Another Bum Appraisal by Clueless Appraiser

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Terrel L. Shields

Thread Starter
Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Some appraisers simply do not know when they are out of their league, or else must rationalize it. Further, every appraiser needs to be coy about what and who you are working for when prying info from a realtor.

The situation is this. Large woodlot on steep slopes, owner gave $100 per acre not so many years ago. He listed with Realtor A. at $1,000 an acre and it sat for several months. Agent brings offer of $700/ac. but knowing they would ante up another $100 /ac. but not more as they had found a smaller but better laying property for $900/acre. Seller wavers, then says if appraiser says it is less than $1000/ac. he will take it. Hires an appraiser who finds it worth $1,400 despite adjacent woodlot selling within 90 days brought only $650/acre (but is about twice as large a tract) and seller was asking only $1,000 with only the single serious offer in 90 days. Appraiser uses comps from 15 mi. away, never mentioning the adjacent sale. Appraiser approaches Realtor B for comps. B figures out who the landowner is, and calls (unbeknownst to the appraiser). B tells seller that if he will hold out 1 more year, rural water will be there and property will bring $2000 - 3000/acre! (Rural Water has been in the making for 10 years with little progress) Tries to undercut Realtor A.

A is furious. Buyers back out, and make offer on the $900/ac. property. Appraiser apparently unaware B has tried to break A's listing. Realtor A is now preparing to file a complaint against both the Realtor and the Appraiser and has only held off because the seller has done figured out both B and the Appraiser are liars and is reconsidering.

I really doubt the appraiser is in any way awares that she is treading on very thin ice. Pulling comps from 15 miles to compare to a property with an adjacent tract of similar woodlot having just sold AND appraising it for 40% more than the owner even thinks its worth is stupid appraising.

If you did not have a single comp and you knew the sales situation, you surely should be inclined NOT to appraise it for more than the asking price once you knew that it was well exposed on the market and had had only 1 real interested party.

Terrel
 

David C. Johnson

Senior Member
Joined
Jan 15, 2002
<span style='color:darkblue'>Terrel,

Your quote is particularly fitting for you post:

"Just another locked bathroom along the highway of life..."

A particular shame for some of the characters in your post, several of 'em are absolutely full of --

Well, never mind, I'll email you...

dcj</span>
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
More than once I have refunded my fee and said "I'm sorry, but I can't do this - the comps are just not there to give a reasonable estimate of value", especially in rural areas with non-cooperative realtors or unique properties. I'd much rather not have to deal with irate phone calls, not to mention the legal hassles than cash a $200-300 check. It's just not worth it.
 

Leon Stewart

Member
Joined
Jan 15, 2002
More than once I have refunded my fee and said "I'm sorry, but I can't do this - the comps are just not there to give a reasonable estimate of value", especially in rural areas with non-cooperative realtors or unique properties. I'd much rather not have to deal with irate phone calls, not to mention the legal hassles than cash a $200-300 check. It's just not worth it.

RStrahan:

You have indicated a good way of dealing with these types of sutuations, I do it all the times. You end up losing Clients, but you don't have to deal with more serious problems in the future. Some Appraisers are so hell-bent on getting paid that they will accept any assignment. If there is some indication that the Deal or the Process is not above board, or someone is looking for a fradulent appraisal, why is it a bad idea to reject the order?

leon
 
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