Gold Supporting Member
- Feb 21, 2004
- Professional Status
- Certified Residential Appraiser
Or a glass of water on the floor (a DIY level). Or water bottle, most of us have that in the car.
Agreed - Unfortunately we also have a whole bunch of AMCs who are just as naive and ignorant on what comprises a good appraisal.Adjustments are only part of the problem. Problems start with identification of the subject property and factors that impact value and ends with reconciliation of approaches and final reconciliation. Plus everything in between. Adjustments is just one issue that is in between. We have a whole bunch of appraisers that don't understand appraisal.
I called an agent out for improperly representing her buyer last year. The value came in 35K below contract. Zero sales in the market to support the contract price. Buyer was from out of State. House was on the market for 200+ days in a market where exposure time is less than 30 days. Clearly over valued. After a ton of value appeals where they send you only significantly superior sales I finally get a call from the buyers agent's broker. I said clearly I can not discuss value however from an ethics stand point your agent has failed the buyer. Once the broker realized what was going on he ended up renegotiating the deal and removing part of their commission. Commissions cause people to act and think like animals. You wonder why the GSE's think waivers are such a great idea! Things would be so different if mortgage brokers, agents and lenders were forced to pay back the commission if the loan failed to perform!I get the most idiotic revision requests primarily when I come in low on a sale. It's like punishment for the appraiser instead of directly challenging the value. My appraiser "grading report card" is also adversely affected by these frivolous revision requests.
Had one yesterday. Reviewer told me I needed to include a copy of the tax record in the report. I have completed hundreds of reports for this lender in the past 4 years and this is the first time I have ever had my work criticized because I didn't have the tax record included in the report. (I do consistently include tax identifying documentation along with an image of the tax site drawing though and this has always been accepted) The reviewer also required me to discuss in detail why the appraised value did not justify the contract price. I used three nearby comp sales with bracketing of all features and had already explained clearly why the house wasn't worth what someone wanted to pay for it. I guarantee this revision request would have never happened if the appraised value met or exceeded the contract price.
Really! WOW! That's pretty dumb of them. So what is the answer to them? Easy explain that this is a case of Surplus land(something along those line).. Some lots are larger or smaller, but all have a Site value that is the same as the subject on the day of Inspection. Thus Bracketing is not necessary. If you anticipate this same stip in the future then create a Boiler Plate explanation. You might even explain that All comparable and Subject have the Same/identical HBU."Discuss why sales that bracket site size are not available".
DUH This is one of the stupidest requests I have received in awhile. This is from an AMC that gives me lot's of work but almost without exception returns every report. Usually I dispute and point out where it is in the report but this??? It's really hard not to write a snarky answer.... Because I can not invent sales that are not existent and I already explained my 3 year search of the comparable rural locale.