• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Appraisal was reviewed and the.

Status
Not open for further replies.

Greggnvegas

Thread Starter
Sophomore Member
Joined
May 9, 2007
Professional Status
Licensed Appraiser
State
Nevada
I did an appraisal of a SFR sale that was not a repo. I did use comparables of homes that were also not repos. It did get a field review and the reviewer used 4 comparable properties and all were repos, (none of which has sold since the repo and are still bank owned) and changed the value to reflect the repo recorded prices. I was under the impression not to do that. Any thoughts?
Thanks, Gregg
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Did you receive a request to rebut the Review? Assuming the comparables YOU utilized reflected conventional market values while the Repos are non-arms length - the Review Appraisal may well be in violation of the USPAP as intentionally misleading. Is there info not included in your post? Something's missing???
 

JRS at OBX

Elite Member
Joined
Jun 13, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
A repo is not a sale much less a comparable sale. It is a transfer from the borrower to the lender. What is the sales price the reviewer is using for that transfer?
 

Hank Outlaw

Member
Joined
Feb 17, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
What is the inventory of repos in your market area? What are the qualifications of the review appraiser? Sounds suspect to me. Are your comps in the same neighborhood, or are they scattered all over the place, other areas than the subject neighborhood; and the review appraiser picks repos due to proximity or sales dates maybe??? At first glance, it sounds like the roles are reversed... maybe you should be reviewing the reviewer.

Hank
 

CCAAMO

Senior Member
Joined
Sep 17, 2007
Professional Status
Certified General Appraiser
State
California
If the reviewer used the non sale transfer back to the lender, then he is truely a moron as they are not sales. USPAP violation since he is reporting them as sales.

I just reviewed an appraisal where the appraiser used 6 comps, all of which were the non sale transfers back to the lender. That appraiser was a Certified Residential appraiser. What the hell is going on?
 

Lee in L.A.

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
4 comparable properties and all were repos, (none of which has sold since the repo and are still bank owned)

They may be similar properties, but they're not sales.
Geez. m2:
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
Tell the lender's underwriter to look at Fannie Mae's definition of market value which is right on page 4 of the FNMA 1004 form (I am assuming this is a review of a typical appraisal, not an an REO apprasial):


DEFINITION OF MARKET VALUE:
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) bothparties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale.

Then point out to them that the use of foreclosures as comparables cannot possible have any bearing on the market value of the subject property per FNMA's definition of market value for 4 reasons: 1). obviously the "Seller" in a foreclosure is affected by undue stimulus; 2). the "seller" in the foreclosure is obviously not typically motivated; 3). the "seller" is obviously not acting in his or her best interest; and 4). there is no reasonable time allowed for exposure of the property on the open market.

The reviewer obviously does not know the definition of market value as set out in your opninion of value. I would would not let this go and would write a response pointing out the flaws in using such comps. After that, it is up to the lender to order another field review or have the one done corrected. I would also think about making a complaint to your state board if this field review results in problems for you with the lender since the field review is clearly in violation of USPAP.
 

Greggnvegas

Thread Starter
Sophomore Member
Joined
May 9, 2007
Professional Status
Licensed Appraiser
State
Nevada
Review

Thanks for the replies,
My comps are not scattered and I did not "cherry pick". I did use the most proximate and recent arm's length sales.

Gregg
 

Greggnvegas

Thread Starter
Sophomore Member
Joined
May 9, 2007
Professional Status
Licensed Appraiser
State
Nevada
Timd354,
The review appraiser is a Certified Appraiser here in Las Vegas. I did rebut the review already and what I sent back was almost the same as what you just posted. LOL. I did included the definition of market value, etc. I did suggest that the lender might want to contact the reviewer and give them a chance to "correct" their mistakes.
Thanks,
 
Last edited:

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
The more I think about this, the more it occurs to me that this reviewer is either grossly incompetent or there is a hidden agenda at work (e.g. the lender instructed the reviewer to kill the deal or the reviewer wants to make you look like a rogue appraiser in order to get you blacklisted so he can steal your client, etc.). In any case, for such an egregious violation of USPAP, I think that a complaint to your state board may be called for.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks