Appraisal industry in disarray

[jt]

Hey Casper, we can see 8O right thru you!

 

[Julio E. Sune Jr. (FL)]

"Destiny is a matter of choice, not chance". ----Not happy doing lender (mortgage work) then try other {non-lender} fields. There is still (and IMO always will be) demand for professional and competent real estate appraisers. In the lending world, there are too many that DO NOT understand (or DO NOT care) that "appraised value IS NOT the number needed in a file in order to make the deal go through".[/b]

 

[jtrotta]

Upon review of all the posts, this thought came to mind; AVM & BPO get all the work, overinflate all values-major lenders across the country begin to fall apart, the gvmnt. seeks "ONLY" certified appraisers to attempt to rescue them and will pay the going FEE!!
Oh by the by-the debt riddled industry looks for the responsible party who will have to cover the debt loss (goes to lender in charge-NO appraiser). Now the blame for the past 15-30 years delema becomes a well known fact across the country; thank god for those *&^%$ lawyers who can then promote the duly supported lawsuits against those who created the failure.
Yep, figure by the above scenerio my Fee's will be around $1,500 per job, with so much work, I'll be quoting a 30-60 day turn time, because there will be a limited number of appraisers in the bness!!

Casper, have a wonderfull day*

Oh thanks for the insight & bright views you've offereed for the FUTURE of our industry

 

[Austin]

Jtrotta: You nailed it, and they will attempt to lay the blame on the appraisers as usual. Here is how I am handling it: I have a complete log and file of dates, names, witnesses, etc., on lender pressure. I received an appraisal request this week that stated: “You appraised this property in 1995 for $50,000, then you appraised it again in 1999 for $60,000, and we need a new appraisal at $75,000.” The same bank had a senior officer tell me that their definition of market value was: “If somebody is willing to sell it for zzz$’s, and somebody else is willing to buy it for xxxx$’s, that is market price.” In other words: “If it is under contract at $150,000, or it cost that amount to build, the appraised price is $150,000.” As Burr Rabbit once said: “Please Burr Bear, don’t throw me in the briar patch!” If they mess with me, they can read my files on a full page add in the local newspaper. It won’t be the first time I have done that. :lol: I don't think I will lose them as a client any time soon.

 

[Dale Smalley]

It not in disarray. Things are just changing as we introduce new technologies for property valuations. The idea that one size (or form) fits all has past and failed. I say AVM's :twisted: for the easy ones and a real appraiser for the complex jobs :wink: . Some will become data collectors and some will become analysts .

Casper 8O can't scare us off.

 

[Ron in AR]

Casper,

Love your name. You're a ghost. We can't see you, right?

What do you do for a living? Come on and respond to some of these posts. It detracts from the credibility of your post if you just disappear.

Please manifest.

Ron in AR

 

[Leanne J.]

There's a good reason why the regulatory ax has come down primarily on the heads of appraisers, escrow companies, and title companies --- they (we) are the part of the industry paid to be unbiased third parties. Our responsibility is to "the public." "The public" has a perfect right to expect better of us than loan officers, real estate agents, or even underwriters. They are all paid to be advocates --- the borrower, the seller, their company and its investors...

The public has a right to expect appraisers not to bow to pressure from these other entities. We are the ones who sign all sorts of certifications that we have not given biased values or analyses. That the facts contained in our reports are accurately reported. Is it really any wonder that when inflated values and "factual inaccuracies" (i.e. lies) came to light during the S&L scandal the public demanded appraisal reform?

Imagine how quickly the legal system would collapse if judges and jurors bowed to pressure from plaintiffs and defendants and/or their advocates. On the other hand, in most jurisdictions :wink:, jury tampering and the intimidation of judges is considered bad form. But those actions are only discovered when someone has the moral fiber to refuse to be influenced and speaks up.

Which brings us right back to our responsibility. Instead of fighting upgraded educational requirements and strict enforcement by the state boards, we should be applauding and supporting those efforts. We should be personally offended each and every time one of our own acts fraudulently or incompetently, because it reflects on us.

Instead of villifying Casper, we should take his warnings seriously. All we have to sell is our expertise and integrity. If the public can't trust appraisers, the public is perfectly justified in getting rid of appraisers.

 

[wade3333]

Casper, Fannie Mae and Freddie Mac as of Feb 1, will not want many appraisals, just give someone 50.00 and you won't have to have an appraisal. When the bubble burst, and the gov't has to bail them out again it will be blamed on the appraiser. Fannie mae is lowering the standards so more people can buy houses according to the news. I assure you I would not encourage anyone to get into the appraisal business today. If the deal doesn't work, its the appraisers fault, if it goes into forclosure it is the appraisers fault. It looks like we would have learned something in the 80's but apparently not. Wade so. ga.

 

[Carnivore]

Leanne J.

Your analogy of the legal system does not work with the appraisal industry. Lenders and other users of appraisal services rarely complain, discharge or do anything to thin the ranks of incompetents. State regulatory boards are underfunded, under manned and in some instinces incompetent or corrupt.
Even when they get a slam dunk they slap them on the hand and move on to another.

Simply, If a judge, jury or attorney gets caught they run a high risk of going to prison and or fines and loss of career.

If an appraiser goes astray he/she is rewarded with an ever more amount of work and higher and higher pay.

 

[Mike Seward]

In late January, one of my appraisers (St Cert., 25 years experience appraising in the same County) completed an appraisal on a condo a few blocks from his home. The SP was $89.5K.
His appraisal was air tight, 3 recent, identical sales from the same complex, one in the same building. A Th sale from a competing complex. He came in at $83.5K.

I called the lender and said the report was just sent to him and it came in at $83.5K. I told the lender that his buyer/client might want to try to re-negotiate the contract, etc. The lender thanked me and said he'd call his client.

Two weeks went by. Today, I received the following e-mail from the lender:

"Mike
The appraisal we ordered from you for this property came in lower than the asking price for the property.
The purchase price was $89,500 and your appraisal came in at $83,500.
Needless to say, the client had to get another appraisal which came in at the asking price.
At this time the client is complaining that she had to pay for 2 appraisals and she feels that Appraisal Alliance should have been able to get the full price as the other appraisal company did. She said she doesn't want to pay for an appraisal that she can't use.
I told her I would bring this to your attention and see what you could do to accommodate her request.
I can send you a copy of her new appraisal if you want.
Please let me know what you can do."

"Casper" (why don't you use your real name?),

If you're a lender, please note that this is what we have to face every day from your fellow lenders.

BTW, I had my office manager reply to the lender's post that I was out, but I wanted to review the other appraisal and would he please send it to me.

I want that report. Skippy had to ignore the sales in the complex and go far away to find sales to use to to hit the number. The State will here about this.

Interesting point, do we quietly turn them in to get them out of our market? Or, do we tell the client who they're dealing with and that we're going to turn them in to the State?

BTW, again,
AFTER I receive the other report, I will say "you engaged me, you pay me, small claims court, etc."

Mike Seward
Appraisal Alliance, Inc.
Apollo beach, USA.............. (FL)

I'll have another one tomorrow....................LO calls (today) after we see the property and says "don't send the report if it comes in below $190K."