Being Told The Contract Price Of A Subject

[J Grant]

What is a "loan production appraiser?" There is no such animal,...I disagree a competent appraiser be lost in the woods without a contract price, since appraisers do refinance and other lender work with no contract price.? If an appraiser inflates value, the appraiser is making it rather than the market, same as if an appraiser "deflates" value, or deliberately comes in "low. " Neither one is correct. But the myth there are a bunch of appraisers coming in low is a myth, and I've never seen an appraiser here brag about killing a deal.

Appraisers don't kill deal, since a buyer is free to purchase at their CS price no matter what an appraisal value is.

I agree appraisers don't "give value"... perhaps they say it as a kind of shorthand. Surely appraisers know ( or should by the time licensed) the market conveys value.. The problem is that the market does not show consistent value across the board and there are choices in the data an appraiser can make.

 

[bnmappraisal]

What is a "loan production appraiser?"

Skippy
Number Hitter
Will play ball
bullseye getter

... just spit balling here off the top of my head

 

[Mike Kennedy]

the market conveys value.. The problem is that the market does not show consistent value across the board and there are choices in the data an appraiser can make.

The market defined as ...___________________??

Being Told The Contract Price Of A Subject

 

[J Grant]

The problem is not the appraiser being told the CS price, the problem is the expectations and pressure that exists because of it.

If appraisers did not know the SC price, the agents, loan officers could not say the appraisal came in "low", since there was no known CS price to come "low " under.

If appraisers were insulated from the pressures the outcome would be quite different. But that is not the case as the supposed AMC solution has just shifted the pressure application, since the faux firewall third party is profit driven and lender affiliated. Lenders now outsource the pressure to AMC;s, before they outsourced it to Mortgage brokers. The only way for the firewall to be effective would be if AMC;s were federal or state contracted and had no affiliation with lenders .

 

[glenn walker]

Skippy
Number Hitter
Will play ball
bullseye getter

... just spit balling here off the top of my head

A loan production appraiser is a term that was used back in the 1980's S & L days when our MAI'S called us the production line ( We called them the Made As Instructed Team ) since we only did residential purchase or refinance loans the term simply meant we were form fillers and not real appraisers. This was before licensing and today's equivalent would probably be the high volume 50-60 per month AMC guy or gal. These appraisers need a contract price otherwise they are lost in the woods.

 

[J Grant]

A loan production appraiser is a term that was used back in the 1980's S & L days when our MAI'S called us the production line ( We called them the Made As Instructed Team ) since we only did residential purchase or refinance loans the term simply meant we were form fillers and not real appraisers. This was before licensing and today's equivalent would probably be the high volume 50-60 per month AMC guy or gal. These appraisers need a contract price otherwise they are lost in the woods.

Then they are not appraisers, in anything but name only. Pathetic...illustrates what is wrong with the profession and it starts on the ordering end...if appraisers are supposed to be independent they need 100% insulation from client affiliation and lender pressure/expectation..nothing much has changed since back then since we still see AMC or cheap pay lender incentive to hire "not real appraisers " if they are "lost in the woods" without a SC price...(from what you say sounds like bank's MAI's were just high rent versions if it was made as instructed though I am aware some of it was banter )

How the heck does a "lost in the woods" appraiser appraise a property without a CS price such as for a refinance? I suppose they just aim for the highest $ value knowing that is always the best outcome in a refinance for a client.

 

[Joe Flacco]

A loan production appraiser is a term that was used back in the 1980's S & L days when our MAI'S called us the production line ( We called them the Made As Instructed Team ) since we only did residential purchase or refinance loans the term simply meant we were form fillers and not real appraisers. This was before licensing and today's equivalent would probably be the high volume 50-60 per month AMC guy or gal. These appraisers need a contract price otherwise they are lost in the woods.

I still think that commercial appraisal license and residential appraisal license should be two separate categories. Not one being limited than the other. Those that want to do both should hold two licenses. Those MAI opinion that residential is easy is one of the causes of where we are at today. They caused big problems.

 

[Evincere]

I've been thinking a lot about impartiality and how to best improve your chances of truly eliminating bias.

When we are given the contract price of a subject for a Purchase Appraisal, and then asked to bracket that price in our comparables, does that not make us inherently bias toward a specific opinion of value?

I much prefer when doing an appraisal without a preconceived notion of value. Even it it does make my job a little easier to know what price to look around. I would rather do a Market Analysis and see what similar properties have for $/sf and go off of that. I feel that is more unbiased.

Are there articles that discuss this? Do you guys have opinions on this? Does this actually violate USPAP by creating partiality?

Paragraph 2. NOT if your data indicates otherwise.

Paragraph 3. When your market analysis is done your findings Should lead you full circle back to Paragraph 2.

The results should indicate whether the contract price is a meaningful date point or not.

 

[J Grant]

I've been thinking a lot about impartiality and how to best improve your chances of truly eliminating bias.
When we are given the contract price of a subject for a Purchase Appraisal, and then asked to bracket that price in our comparables, does that not make us inherently bias toward a specific opinion of value?
I much prefer when doing an appraisal without a preconceived notion of value. Even it it does make my job a little easier to know what price to look around. I would rather do a Market Analysis and see what similar properties have for $/sf and go off of that. I feel that is more unbiased.
Are there articles that discuss this? Do you guys have opinions on this? Does this actually violate USPAP by creating partiality?

I would rather do a Market Analysis and see what similar properties have for $/sf and go off of that. -You can still do this market analysis, and any other market analysis you want when you know the SC price. Why are they mutually exclusive? If more market evidence supports a different value than the SC price, the analysis would show that, if more market evidence supports a value equivalent to a SC price, the analysis would show that. Do the same research and analysis you would do as if there was no sales contract , then consider the SC price in the reconciliation, and it is up to you how much relevance ( or how little ) to accord the SC price at that point..