Appraisal on Same Property for different client

[Mejappz]

Thank you everyone for your input through this. It is a very odd situation that has come about and there are many other details that I could mention that would (I’m sure) further go to validate our concerns.

I am not only concerned about his involvement in both sides of the transaction, but I am very concerned about the quality of the company’s underlying appraisal of the property to me.

I think when it comes down to it, I really just want to feel like the appraiser is following through with his word to me. Though it is a relatively small community where I live, I wouldn’t think it would be difficult to find another appraiser.

I have given notice to the appraiser of my concerns and asked him to decline the new assessment. I am uncertain as to what he will do, but to me it seems simple -Follow through with his word.

Thanks again for everyone’s education and wisdom.


Definitely not the case. My profession requires ethical standards in private and public affairs. I would never jeopardize my livelihood or risk harm to another.

I was never told that anyone other than the original appraiser would have a hand in the appraisal. I didn’t find that out until I received the report. It indicated that office staff had pulled comparable properties.

My concern is that they 1) didn’t have my tax information, and 2) my property information is unlisted because of my profession. Therefore, I am wondering how the pulled comparable properties for my home.

In reviewing the comparable properties listed in the report, all we’re ranch style homes decades older than my home. My home is a two story home with a finished basement. None of the comparable resembled my home, had the quality of my home, or were built in the same decade.

I have some significant concerns about what was done. To me, it seems like the only item that was similar in the comparable properties was above ground square footage.

It looks like you have sadly befallen to the incompetent form-filler that USPAP, Lenders, AMCs, and the GSEs love. In this industry, the stupid get rewarded, while the competent people are condemned.

 

[Tim Hicks (Texas)]

Definitely not the case. My profession requires ethical standards in private and public affairs. I would never jeopardize my livelihood or risk harm to another.

I was never told that anyone other than the original appraiser would have a hand in the appraisal. I didn’t find that out until I received the report. It indicated that office staff had pulled comparable properties.

My concern is that they 1) didn’t have my tax information, and 2) my property information is unlisted because of my profession. Therefore, I am wondering how the pulled comparable properties for my home.

In reviewing the comparable properties listed in the report, all we’re ranch style homes decades older than my home. My home is a two story home with a finished basement. None of the comparable resembled my home, had the quality of my home, or were built in the same decade.

I have some significant concerns about what was done. To me, it seems like the only item that was similar in the comparable properties was above ground square footage.

I would never consider homes that different than the subject unless there was simply nothing else to utilize. How do you support they are similar if they are not the same age, same size or same quality? You would need at least one similar age, two story home with a basement to support differences in the market unless there simply are not any. Even so, would go back over a year or expand my search to other towns for a similar style property. I just did that this week. I had to go to another town for a 1955 3/1 home with no garage. I had 2/1's, 3/2s and 10+ years either direction and most remodeled (mine was not), so I added a couple of sales from the next town that had exact age, size and condition homes to support my adjustments for the sales in that town.

 

[Tiffany Gibbons]

I would never consider homes that different than the subject unless there was simply nothing else to utilize. How do you support they are similar if they are not the same age, same size or same quality? You would need at least one similar age, two story home with a basement to support differences in the market unless there simply are not any. Even so, would go back over a year or expand my search to other towns for a similar style property. I just did that this week. I had to go to another town for a 1955 3/1 home with no garage. I had 2/1's, 3/2s and 10+ years either direction and most remodeled (mine was not), so I added a couple of sales from the next town that had exact age, size and condition homes to support my adjustments for the sales in that town.

This is what I do as well and adjust for differences in land value. OP did say it was a small community, maybe no recent similar sales. I wonder if it is maybe a VA. VA would not consider that a valid reason to reassign,, especially near a Holiday. Some counties only have 1or 2 VA appraisers. I'm doing one right now I wish I could get out of just because I've done it before, but it was already reassigned once.

 

[Fernando]

Very Easy-Change the locks and tell -the appraiser to go F-=Off--Then get a good attorney -DONE-

I agree with Glenn. If your lender doesn't honor your request not to use him then tell lender you won't let that appraiser in.
I'm sure lender will now accommodate what you want.

 

[Tiffany Gibbons]

I agree with Glenn. If your lender doesn't honor your request not to use him then tell lender you won't let that appraiser in.
I'm sure lender will now accommodate what you want.

It's not his lender. It's the purchaser's lender.

 

[Fernando]

Not related to this case, when I do a purchase appraisal, I would talk with the listing agent and agent tells me a lot of information. Things buyers may not be aware of.
Since it's not "off the record" what agent tells me, I can put in appraisal report if relevant.

 

[Carnivore]

Wow, sorry but that's ridiculous...file a complaint. Where do you come up with this?

The results and information can remain confidential. Disclosure about a prior service must be disclosed but that doesn't include reporting the results.

To assume the appraiser would not honor the prior agreement also seems extreme and judgemental...we're expected to act as professionals and unless there's something to the contrary that's how most would proceed.

That's true above. I would expand what you said about the prior service. i,e Your not required to say what the actual prior service that was performed,

In the OP's situation is quite different, We members may not have all the specific information about this prior assignment. The question that came to my mind upon re-reading the OP's Original Post is something I am unclear about. What Exactly were the specific conditions in the Engagement Letter between this Appraiser and the Person(OP) who engaged the Appraiser? Was this a Restricted Use Report, If so and I think it is! Could it be the Original Appraiser has violated the Ethics Rule by accepting a new assignment knowing he has to reveal prior Services.

The nitty-gritty of it all is on Page 8 & 9 of Ethics Rule USPAP.

 

[bnmappraisal]

My concern is that they 1) didn’t have my tax information, and 2) my property information is unlisted because of my profession. Therefore, I am wondering how the pulled comparable properties for my home.

To answer #1 - I would assume the appraiser got your tax info, etc and provided it to the office staff to fill out the subject info section of the report. Again, filling out that info does not require license/certification. My 13 yr old son would be allowed to do that

#2 - Again, the office staff would have most likely received the info (if they didn't already know how to look it up themselves) from the appraiser regarding your property. Then based on that info and search parameters given by the appraiser, probably would run a search (or most likely multiple searches) of sales within said parameters. From there (and where the lic/cert comes into play) it is up to the appraiser to determine which are comparables and make any necessary adjustments.

Side Note: Since the original appraisal was ordered by you, YOU are the client to that appraiser (it doesn't matter who pays for the appraiser, it is the person/entity that ENGAGES an appraiser for an assignment that is the client). Since you are the client, you can talk directly to the appraiser and can question the report. I have some private/non lending clients call me once in a while to clarify certain things or to ask me why this or why that. That is totally fine, since you/they are the client

Just my $0.02

 

[ZZGAMAZZ]

To answer #1 - I would assume the appraiser got your tax info, etc and provided it to the office staff to fill out the subject info section of the report. Again, filling out that info does not require license/certification. My 13 yr old son would be allowed to do that

#2 - Again, the office staff would have most likely received the info (if they didn't already know how to look it up themselves) from the appraiser regarding your property. Then based on that info and search parameters given by the appraiser, probably would run a search (or most likely multiple searches) of sales within said parameters. From there (and where the lic/cert comes into play) it is up to the appraiser to determine which are comparables and make any necessary adjustments.

Side Note: Since the original appraisal was ordered by you, YOU are the client to that appraiser (it doesn't matter who pays for the appraiser, it is the person/entity that ENGAGES an appraiser for an assignment that is the client). Since you are the client, you can talk directly to the appraiser and can question the report. I have some private/non lending clients call me once in a while to clarify certain things or to ask me why this or why that. That is totally fine, since you/they are the client

Just my $0.02

Because the assignment was for a private individual, the report might have considered all possible sources of confusion, and described these issues/factors in the original report, seein' as how the SOW depends upon the client's expectations.

 

[ZZGAMAZZ]

I don't mean to hijack thread, but how many of you have accepted an assignment and didn't realize you had the done the appraisal previously until you set up the file the day for the inspection?

I've almost used the subject as the perfect comparable property....for itself. LOL. Does that count????