Appraisal questions

[Terrel L. Shields]

what should I do now??

Contact the lender and ask for a new appraisal at their expense. Tell them that the guy was sanctioned and his reports should not be the basis for valuation.

 

[sputnam]

And I doubt the state reprimanded the appraiser for a "low ball" appraisal. For all I know it could of been some USPAP issue that had nothing to do with assignment results. The OP is being vague, seems to just want to hear something so they can say they are right.

That's right. Some states won't even investigate if the complaint is 'The value is too low'.

 

[J Grant]

thanks grant, i never heard 'benchmark' used before. always can learn something here from the smart people.

This board keeps me smarter , or at least less stupid because sometimes I look things up to check them before posting!

USPAP says an opinion of value can be a point, a range, or a benchmark ( a house is worth the same as the one that sold next door )
People cans erroneously think in a review if they agree with the OA value they did not give an opinion of value - well guess what, they just did give an opinion of value !( the OA as the benchmark)

 

[sputnam]

This board keeps me smarter , or at least less stupid because sometimes I look things up to check them before posting!

USPAP says an opinion of value can be a point, a range, or a benchmark ( a house is worth the same as the one that sold next door )
People cans erroneously think in a review if they agree with the OA value they did not give an opinion of value - well guess what, they just did give an opinion of value !( the OA as the benchmark)

Yep. USPAP also says that an appraisal review does not have to include the reviewer's opinion of the subject's value. If you complete Item 10 on the Fannie 2000 then yes, you have done an appraisal. There is no USPAP requirement that you answer that question. That is a matter that is determined by the needs of your Client, Intended User, and governed by your Scope of Work. And yes, you can report a review on the Fannie 2000 and leave that section blank.... again, depending on the nature of the assignment.

 

[Zoe]

Hello. Can you tell me the best way to resolve an issue of two private paid for appraisals that are way way off from each other? also, is it normal to not adjust for condition for a comp that is 100 percent upgraded/updated?

I am almost certain you are trying to buy this subject property. Please tell me if I am wrong. The answer to your question is no, it is not normal and yes it should be adjusted for.

You appear to be very savy investor. I appreciate that. Call the appraisers. You have their contact information. Hope it is an AMC. LOL

 

[sputnam]

Hello. Can you tell me the best way to resolve an issue of two private paid for appraisals that are way way off from each other? also, is it normal to not adjust for condition for a comp that is 100 percent upgraded/updated?

The best way depends on what your role is. If you are the Buyer, and the appraisals were completed for Lending purposes, the only thing you can do is talk to your loan officer. The Lender has policies in place for such situations. If you are the Seller, you have no real recourse at all... except withdraw from the sale. There might be some sort of penalty. If you are the Lender/Client, there are several approaches. A side by side review. A third appraisal. A Reconsideration of Value. Of course, you could file a complaint with the state appraisal regulators. The Board's investigation will take months, at the least, and won't help you no matter what the outcome. All the Board can do is sanction appraisers.

 

[Terrel L. Shields]

Some states won't even investigate if the complaint is 'The value is too low'.

That is not a factor in AR nor OK. They review the entire report and each and every USPAP violation, no matter how trivial they may seem, is listed and I would bet about 40% of complaints are dismissed, no more. And 90% of the rest will result in a settled sanction. The few remaining have about a 50/50 chance of being dismissed by the full board. Previously more frequently the board got reversed by a real court although several cases had to be taken to the state Supreme Court. They have better counsel now from the AG.

 

[sputnam]

That is not a factor in AR nor OK. They review the entire report and each and every USPAP violation, no matter how trivial they may seem, is listed and I would bet about 40% of complaints are dismissed, no more. And 90% of the rest will result in a settled sanction. The few remaining have about a 50/50 chance of being dismissed by the full board. Previously more frequently the board got reversed by a real court although several cases had to be taken to the state Supreme Court. They have better counsel now from the AG.

Sure. Here too. If the Board takes up the complaint, everything is fair game. Some complaints that are filed, never make it out of the gate.