Black couple settle lawsuit as home value at $500k below real price

[RCA]

No problem. All anyone can ask is for people to consider the actual facts in these cases.

Getting the facts after the fact event can be impossible because the appraisals are kept confidential, a ton of misinformation is generated, and the subject house may undergo significant modification after the appraisal.

Thank goodness we at least have Google Earth.

In any case, if you look at this neighborhood holistically --- you can't escape the fact that it is severely handicapped, wrt market value.

You need some kind of wording in the Engagement Letter (or whatever you call it) that allows the appraiser to publish the photos in case of a lawsuit by the owner, in order to publicly refute any disinformation about the state of the property at the time of appraisal. That would only be fair. But, legally, getting the owner to sign that kind of release would be next to impossible - they would just find another appraiser.

The legal profession and courts are often putting appraisers in an indefensible position. This is a good reason for appraisers to join some kind of union. However, despite the temptation, they should avoid affiliating themselves with existing labor unions such as the AFL-CIO, and remain independent. The protocols and infrastructures will be worked out over time. But, it may take 50-100 years.

 

[ucbruin]

"You need some kind of wording in the Engagement Letter (or whatever you call it) that allows the appraiser to publish the photos in case of a lawsuit by the owner, in order to publicly refute any disinformation about the state of the property at the time of appraisal. That would only be fair. But, legally, getting the owner to sign that kind of release would be next to impossible - they would just find another appraiser."

Both parties should be happy that they "dodged a bullet"....

 

[Sadie]

Not only was Miller railroaded by the narrative for a complex assignment, she reportedly loses her daughter and husband.

On top of this, she's getting negative, vile reviews from around the world.

Slew of Negative Reviews for Appraiser Miller - Appraisers Blogs

Appraiser Miller's Google & Yelp business pages have received a slew of negative reviews from people living as far away as New Zealand!

appraisersblogs.com

Good thing those unlicensed "inspectors" for hybrids are not racist.

Yelp shut down the ability to write new reviews while they look into the fake reviews that were posted.

 

[Surf Cat]

Yelp shut down the ability to write new reviews while they look into the fake reviews that were posted.

That's good to know. Somebody has some common sense out there....

 

[George Hatch]

By the time you have a sales history for the neighborhood that looks like this, coupled with the complete lack of SFR sales in the neighborhood over the previous 12 months it's going to be impossible to support on the factual basis an allegation that the property was undervalued at $970k, let alone undervalued by bypassing more similar for less similar or reconciling too low due to personal bias.

That doesn't mean I think I would have valued that property at that amount and it doesn't mean that I assume the original appraisal was sufficiently well developed or reported. When the lender reviewed it, a reviewer would have needed a reason to disagree with that original value conclusion and would also have needed the data/analysis to support that reason. Which in lieu of directly comparable sales will invariably go back to opinions on locations at the very least.

I've had phone conversations with a half dozen appraisers on this case and have seen comments from at least one local appraiser who said they'd probably have gone higher for this house at this time, like $1M to $1.1M. Which that's been the opinion of virtually everyone I've spoken to on the verbal basis who has expressed an opinion of the value. With that said, we all have the benefit of knowing what happened in the market since 12/2020 so it's arguably easier to fit this value in that extended timeframe - which the original appraiser would have been wholly unable to do.

Of course, a borrower who's adding $400k in costs isn't going to be any happier with a $1.1M value than a $970k value so they still would have complained.

 

[ucbruin]

By the time you have a sales history for the neighborhood that looks like this, coupled with the complete lack of SFR sales in the neighborhood over the previous 12 months it's going to be impossible to support on the factual basis an allegation that the property was undervalued at $970k, let alone undervalued by bypassing more similar for less similar or reconciling too low due to personal bias.

That doesn't mean I think I would have valued that property at that amount and it doesn't mean that I assume the original appraisal was sufficiently well developed or reported. When the lender reviewed it, a reviewer would have needed a reason to disagree with that original value conclusion and would also have needed the data/analysis to support that reason. Which in lieu of directly comparable sales will invariably go back to opinions on locations at the very least.

I've had phone conversations with a half dozen appraisers on this case and have seen comments from at least one local appraiser who said they'd probably have gone higher for this house at this time, like $1M to $1.1M. Which that's been the opinion of virtually everyone I've spoken to on the verbal basis who has expressed an opinion of the value. With that said, we all have the benefit of knowing what happened in the market since 12/2020 so it's arguably easier to fit this value in that extended timeframe - which the original appraiser would have been wholly unable to do.

Of course, a borrower who's adding $400k in costs isn't going to be any happier with a $1.1M value than a $970k value so they still would have complained.

Did everyone who gave an opinion create a work file....

 

[Zoe]

Okay, I thought Miller appraised it after the renovation. I must be off base. I was thinking somebody probably appraised it previously in order for homeowners to get the financing to do the huge renovation. I would want some sales with that kind of view somewhere or have to go back in time and compare to sales within a short period of time to give value to that view on a percentage basis.

I would also be asking my client for a bump in fee. LOL

I would be drilling the homeowners for info. They would say "Lord, I 'm glad he is gone." LOL

When I left their home, they would know I was trying my best to do the best job I could to help the bank and them. I might call them back several times just to get more info. I would let them know that when I left the house.

 

[George Hatch]

Knowledge is power




Assignment is a defined term. No Client = no assignment.

 

[ucbruin]

Knowledge is power


View attachment 73642

Assignment is a defined term. No Client = no assignment.

That's a "NO"....

 

[George Hatch]

Do I need to spell it out for you? There's no workfile requirement under our professional standards unless there's an assignment. Among other expectations which don't exist and which therefore cannot be met or not-met.

If you want to get uppity about imposing expectations on your peers which don't apply then at least do so knowing you're arguing an opinion that is unsupported in our professional standards.