Appraisers: Pressure to inflate inflates

[Pamela Crowley (Florida)]

Appraisers: Pressure to inflate inflates

http://www.myrecordjournal.com/site...&PAG=461&dept_id=592709&rfi=6&ref=patrick.net

An appraiser who works for Robert Claremont was sent to a house in Stratford and the real estate agent wouldn't let her enter.
"The agent told her she needed to call the lender," Claremont said. "I told her that is nonsense."
The lender then called Claremont and said he had an appraiser who could put a $405,000 value on the house, and he found another one who could deliver $410,000.
But if Claremont's appraiser could bring it home at $415,000, the real estate agent would allow her into the house and she had the job.
Claremont was outraged.

 

[c w d]

Great article Pam. Thanks for sharing. I will say it's more of the same though.

The pressure on appraisers to omit information, make fraudulent claims or set higher values has prompted state Rep. John Harkins, R-Stratford, to sponsor a bill penalizing appraisers who allow themselves to be influenced by anyone who benefits from a real estate transaction.

Yeah that's going to fix all that is wrong with the world. I'm feeling like a dead horse people keep beating in order to make everything "right".

Representative Harkins, you'll be happy to know I haven't allowed anyone to influence my ethics. And because of it I haven't had an appraisal in 3 weeks while my "peers" that are eager to conspire with lenders and realtors are working steadily through this depressed real estate market. Potential clients, all of them, aren't concerned about my qualifications, my professionalism, my experience or my ethics. They are only concerned with my ability to facilitate their business. If I am unwilling to facilitate their business, i.e. allow myself to be influenced, I don't get any work. You can legislate ethical behavior all you want. The market is taking care of me......right out of business. You'll also be happy to know that I've stuck to my guns. I've maintained my ethics. I haven't allowed myself to be influenced. And, I'm going into another field of work entirely. I'll be eating dirt as a student for the next 6 years. But, at least that is something I can do ethically. Until you support and pass real legislation that doesn't allow our clients or potential clients to run the ethical appraisers out of the business, piling on every increasing penalties on the shoulders of appraisers isn't going to do anything. After all, the desire of an individual to obey the law is secondary to their ability to feed themselves. Please study Maslow's hierarchy of needs before supporting legislation which adds further penalties upon appraisers. If you really want to improve the profession then your legislation needs to be more than lip service. Thank you for all your help.

 

[panappr]

This should not come as a surprise to anyone any longer. I've been monitoring several appraiser stories over the past 6 months (more or less) and on a daily basis from AMCs with requests that would clearly violate several of USPAPs most common. Last week one of the big ones (the Big "L") even exposed their 3 strikes policy which would eliminate the appraiser from the panel, naturally he complied????. Pretty blatant stuff. Most of my long time honest clients are gone and I don't work for AMCs, but those you who do have to know what I'm talking about or maybe it's just LA. If its not being dictated on how to report your assignments, then it is beating the next guy on price. I'm still trying to find a comfort zone, but the new clients I have found appear to be much worse than my old ones. This has turned into the most disrespectful business I have ever seen.

 

[timd354]

Appraisers: Pressure to inflate inflates

http://www.myrecordjournal.com/site...&PAG=461&dept_id=592709&rfi=6&ref=patrick.net

Mr. Claremont should have told the lender and realtor that, "sure, the value is no problem" and then just performed the appraisal and sent in the appraisal report at the true market value and dared the lender and/or realtor to do anything about it or not pay for the appraisal.

 

[Lost Cause]

Right On!

Mr. Claremont should have told the lender and realtor that, "sure, the value is no problem" and then just performed the appraisal and sent in the appraisal report at the true market value and dared the lender and/or realtor to do anything about it or not pay for the appraisal.

This is how it should be handled. Promise 'em anything, but deliver the truth. Don't foget to collect at the door!

 

[c w d]

Mr. Claremont should have told the lender and realtor that, "sure, the value is no problem" and then just performed the appraisal and sent in the appraisal report at the true market value and dared the lender and/or realtor to do anything about it or not pay for the appraisal.

Ok, so the appraiser does as you suggest. Do you think they will see any reoccurring business from that client? No. I need several hundred appraisals per year to make a decent living. Most of those will only be single assignment clients. It gets very expensive to attract clients through advertising when they are only single assignment clients, i.e. give me one assignment, I don't come in on value and I never hear from that client again. And lets not forget secret black lists and word of mouth. After all, the market defines a "good" appraiser as one who hits value. So, although my reports are in compliance with all the pertinent regulations and have minimal errors, no one cares if I can't opine a value that my client requires regardless of facts which dictate a property's worth to the contrary. Therefore, I am a "bad" appraiser. Noone wants a "bad" appraiser. If you conduct your business in this fashion you will starve with the rest of us.

 

[Don Clark]

Mr. Claremont should have told the lender and realtor that, "sure, the value is no problem" and then just performed the appraisal and sent in the appraisal report at the true market value and dared the lender and/or realtor to do anything about it or not pay for the appraisal.

So, telling a lie is an ethical behaviour? If that is your idea of ethics there must be many brokers and AMC's looking to hire you.

 

[Riick]

So, telling a lie is an ethical behaviour? If that is your idea of ethics there must be many brokers and AMC's looking to hire you.

ROTFL

"Well, that property could be worth as much as
$XXXXXXXXXXXXXX (quote highe$t $ale in 1 mile radiu$)
it depends on the style, size, location, condition and amenities.

Send the order in and we'll have a look at the house for you."

That's a lie & unethical?

 

[Lost Cause]

Absolutely (Relatively)

So, telling a lie is an ethical behaviour?

Under those circumstances, yes it is.

 

[Mztk1]

You don't have to lie. You just tell them on the phone, "Okay. I'll keep $415,000 in mind while writing the report, and I'll do my absolute best".

There is no way you can't keep that number in mind while writing the report. I bet 10 years from now that number will stick out in Mr Claremont's mind. So now just do your best as YOU define it, which is an accurate value. No lies, just market value. You didn't promise anything.