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Can You Be Objective After A Threat?

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Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
I get the call to re-do a property I've done two years ago.
The CA loan officer wants to know how prices are and I
say "stable." He's shocked, he didn't want to hear that.
But sends the order. The subject has been listed for 2 years
with the lowest list price being $695,000. I appraise the property
for $650,000. A month passes.....

Homeowner calls and faxes me 20 pages of irrelevant material
on small items she has paid to maintain the property in the last
two years. Her real-a-tor faxes 10 pages of listings, one sale
that is over twice as large as the subject and a pending sale.

Homeowner calls and says they've rejected the appraisal. I'm less
than impressed, but say I haven't heard from the LO. LO calls and
I tell him most of the stuff is irrelevant, except for that pending sale.
I'll grid it for $75.

Homeowner faxes me that the $75 is unacceptable and includes a
newspaper clip entitled, "Bad Appraisal should be redone". In the
clip, the homeowner says the appraiser used comps 1/2 mile away.
The expert (no source on the clip) says "Insist the appraiser redo the appraisal
until he gets it right....If the lender required you to pay for the appraisal
you are entitled to an honest appraisal.....If the appraiser refuses to redo
the appraisal, report his negligent appraisal to the state office of
real estate license appraisers for descipline."

So what to do next?? Can you be objective after someone has
implicitly threatened to take you to the board? Do you need to modify
your certification if you do anymore work? Are there any Advisory
Opinions on this?

elliott
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Sigh...

gritting my teeth and wondering why I'm doing this...

OK, I have simply told them to PLEASE DO file a compaint about that appraisal. I'll look forward to it!!! And, I will be filing a complaint against the LO and the Realtor for pressuring an appraiser. (I'm sure I can find something somewhere that will come close to fitting)

Here's one that I think Don Clark put on here once that is now in all of mine:

"This report has been prepared for my named client with whom Professional Standards require me to maintain a very strict confidentiality. If my client will provide written permission, I will consult with others for a prearranged consultation fee, to be paid at the time of the consultation."
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Good answer Pam. The hard part would be to resist faxing counter articles from Julio's links. :D
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
The question was, can you be objective after you have been threatened.

The answer is both yes and no. Yes you can be objective but the person making the threat will consider anything you've done as adversarial and therefore the answer is no.

I had a run-in with a sales person while trying to make an appointment to appraise his girl friends house where he also lived. He made some remarks that I did not like and when I told him, in a very firm voice, that sometime between 3 and 6 pm was the best I could do on an arrival time, he said "Hey, you don't have to get mad. Just set a time within a half an hour. This was property number 10 on a very long day. I hung up on him and called the lender. The lender asked me what I wanted to do. I told her to reassign the order to another appraiser because if I didn't hit the number right on the mark, he would claim it was because I got mad at him. I actually didn't get mad. I hung up so I would not get mad.

You can win the battle but loose the war. First mistake was in getting into any conversation with any borrower if they are at all antagonistic. Second mistake is not chewing the LO a new one for not shielding you from this type of harassment. If the LO and the UW don't like the appraisal, that's one thing. They are you clients so you talk to them and explain things. The borrower is hot because they not getting what they want and that will be a loose-loose situation anyway you cut it.

Back out as gracefully as possible.
 

Patrick Egger

Sophomore Member
Joined
May 29, 2003
Professional Status
Certified General Appraiser
State
Nevada
First ... the question on objectivity ... depends on you ... you have to ask and answer that yourself because only you know the ansnser.

Second ... on the property being listed for $695K - 2 years ... could be that it isn' t the price ... but the seller. I came across one the other day listed at 160K for 6 months in a tract area that is selling similar plans in 5 to 10 days ... talked to the broker and she told me the seller was impossible to deal with, rejects any offer that isn't full price with the buyer paying all cost and a 5% non-refundable deposit. ... so failure to sell may not be the whole story.

Next ... the quotes from the homeowner are direct from a guy named Bob Bruss ... see the posts about him on the total2000 user group on yahoo. He's like the appraisal anti-christ.

Last ... the property owner isn't the client true ... and going before the board is always a possibility ... with anyone, client, owner, etc., .. assuming you did a good appraisal the burden of proof is on the accuser ... they have to show that what you did was wrong .. which brings me to the pending sale ... if you think it has any bearing on the subject ... its market data and a little effort will let you know if its applicable to the problem or it will prove that it isn't.

You don't have to put it in the report unless it has a bearing on the subject's value. Having went through the process is cheap insurance if you do a call from the board and they ask did you consider ... etc.

Be more pro-active on this issue ... you have someone who's reading the Bob Bruss handbook on getting your way via intimidation ... and you're likely going to have to deal with it. Not pleasant I know ... but if you've do a little more than what's expected ... you'll come out ahead in the long run.

Keep us posted on this
 

TC

Elite Member
Gold Supporting Member
Joined
Jan 31, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Elliot,


Cash the check and tell that guy to go pound salt, you did your job as a disinterested third party like you should. I wouldn't lose any sleep over it.


Just my opinion.

TC
 

liznindy

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Indiana
What drives me bananas is......The BAD appraisal is always the one that does not come in at the value the homeowner and/or LO wants :eyecrazy:

If it makes you feel any better, I had a homeowner send me a letter telling me how "bad" my appraisal was...."I didn't count the finished attic in the GLA " (I did consider it, just on a seperate grid line due to its limited functionality).."I didn't consider that they had replaced the HVAC six years ago and did other routine maintenance"....and so forth. I didn't reply to the homeowner as they were not my client and I do not feel that I need to explain the appraisal process and my reasonings to them. My reasonings are included inthe report submitted, the client was satisfied with the appraisal report, and my job is done.
 

J in Florida

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Florida
That newspaper guy you were talking about is a complete tool as it applies to appraisal. He is doing as much damage to legitamate appraising than anyone.
 

Damon Young

Sophomore Member
Joined
Jun 15, 2003
<<<<<<<<<<newspaper clip entitled, "Bad Appraisal should be redone". In the
clip, the homeowner says the appraiser used comps 1/2 mile away.
The expert (no source on the clip) says "Insist the appraiser redo the appraisal
until he gets it right....If the lender required you to pay for the appraisal
you are entitled to an honest appraisal.....If the appraiser refuses to redo
the appraisal, report his negligent appraisal to the state office of
real estate license appraisers for descipline."
>>>>>>>>>>>>>>>


That quote is from a know appraisal-hater, a realtor/attorney named Bob Bruss (www.bobbruss.com )

BTW, most states do not allow an appeal to the board based on value alone, there must be a USPAP violation.

Here is the entire article:
Q. About 25 years ago, we bought our house in a transitional
neighborhood, which has become very trendy and highly desirable. We
recently had our home appraised for a refinance. But the appraisal
came in very low. When I investigated, I learned that the appraiser
used "comps" (recent comparable home sales prices) not evenin my
neighborhood, but about a half mile away. I told the lender and the
appraiser that I paid for a bona-fide appraisal and that's what I
want. Either re-do the appraisal, using truly comparable recent
nearby home sales prices, or I'm not paying for the appraisal. How
can I complain about a bad appraisal? - Bill Y.

A. Congratulations on complaining about the bad appraiser. If the
facts are as you report, that appraiser should not be eligable to
hold an appraiser's license.
Insist that the appriaser re-do the appraisal until he gets it
right,. If the lender required you to pay for the appraisal, you are
entitled to an honest appraisal using current appraisal standards.
That means the appraiser must use truly comparable recent home sales
prices from your neighborhood, not one that is half a mile away.
If there were no homes sales in your vicinity within the last six
months, the appraiser must use the best available "comps" which
could be in an adjacent neighborhood. If the appraiser refuses to re-
do the appraisal, report his negligent appraisal to the state office
of real estate appraisers for discipline.
 
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