Certified Residential Appraiser Doing Commercial Appraisals

[BlakeAlden]

Someone came into my office with a report in hand to ask my opinion if the appraiser did a good job on a commercial property. I told them, sorry but I can't help you because I only do residential appraisals and not commercial appraisals. I looked at the report to see if a reliable commercial appraiser had done it and it turns out that it was done by a certified residential appraiser and it was even done on a single family URAR report. The report is of a commercial warehouse type building and its purpose was for fair market value for the owner to possibly sell it.
I told them that this appraiser has a very bad reputation in general and that it should have been done on a commercial form or a narrative report by a commercial licensed appraiser. After they spoke to the appraiser, he said that since this was not done for a federaly related mortgage loan, that any appraiser could do it and on any form. I told them that this is not correct and I was looking to see if anyone can direct me to any reference material stating the pros or cons of his argument to see if the property owner wants to turn the report into the state or if she can get the refund that she is requesting.
Thanks in advance.

 

[PropertyEconomics]

Someone came into my office with a report in hand to ask my opinion if the appraiser did a good job on a commercial property. I told them, sorry but I can't help you because I only do residential appraisals and not commercial appraisals. I looked at the report to see if a reliable commercial appraiser had done it and it turns out that it was done by a certified residential appraiser and it was even done on a single family URAR report. The report is of a commercial warehouse type building and its purpose was for fair market value for the owner to possibly sell it.
I told them that this appraiser has a very bad reputation in general and that it should have been done on a commercial form or a narrative report by a commercial licensed appraiser. After they spoke to the appraiser, he said that since this was not done for a federaly related mortgage loan, that any appraiser could do it and on any form. I told them that this is not correct and I was looking to see if anyone can direct me to any reference material stating the pros or cons of his argument to see if the property owner wants to turn the report into the state or if she can get the refund that she is requesting.
Thanks in advance.

Your state law will tell you if they are allowed to do it. At the very least, a warehouse property done on a 1004 Form would be misleading and should absolutely be turned in to the state. If you have a copy of that report you should turn it in to the state board and let them have a nice conversation with this appraiser. Wonder what they used for bedroom count???? :Eyecrazy:
On the other hand, the price was right ..... $300 for a warehouse analysis is pretty nice.

 

[BlakeAlden]

Your state law will tell you if they are allowed to do it. At the very least, a warehouse property done on a 1004 Form would be misleading and should absolutely be turned in to the state. If you have a copy of that report you should turn it in to the state board and let them have a nice conversation with this appraiser. Wonder what they used for bedroom count???? :Eyecrazy:
On the other hand, the price was right ..... $300 for a warehouse analysis is pretty nice.

Thanks.
The fee was $900, I was told, as he was giving them a "huge break". When she asked for her money back, he said, well how much were you looking for me to give back?

 

[Bob Ipock]

In NC, a residential appraiser can perform any non-FRT as long as they are competent. I suppose if a complaint came up they would have to demonstrate competency.

The URAR form for a warehouse would certainly not be a good indication of competency.

 

[rbrienza]

OMG...... Is this where the state sends you a self addressed, stamped envelope with a request to please insert your license ......

 

[PropertyEconomics]

OMG...... Is this where the state sends you a self addressed, stamped envelope with a request to please insert your license ......

I would hope every state would do that .. but apparently there are some that wont. Lets hope NY is one that will.

Slowly helping ethical appraisers, one revocation at a time.

 

[Michigan CG]

......done on a single family URAR report. The report is of a commercial warehouse type building ......

I didn't know there were people out there that were that stupid.

Absolutely, unequivocally should be turned into the state. That license should be retired.

 

[BlakeAlden]

I didn't know there were people out there that were that stupid.

Absolutely, unequivocally should be turned into the state. That license should be retired.

As soon as I saw the appraiser's name, I knew people COULD be that stupid. Just by a Google search of this appraiser's name/company name, you will see complaints against him from the public, a $1,000 fine from the state for lack of continuing education, and a couple of lender "disapproved" lists. And that only took a minute. I could go on and on about non-internet listed problems also.

 

[Terrel L. Shields]

The URAR form for a warehouse would certainly not be a good indication of competency.

There are forms you can use - Clickforms still has a lot of them even though I personally don't think they are very good forms.

I didn't know there were people out there that were that stupid.

You need to get out more. I have seen two poultry farms appraised on a URAR...btw, the two people who did it? One was sanctioned by OK earlier this year and the other surrendered her license to AR this year as well.

 

[andy ruffner]

There are forms you can use - Clickforms still has a lot of them even though I personally don't think they are very good forms.
You need to get out more. I have seen two poultry farms appraised on a URAR...btw, the two people who did it? One was sanctioned by OK earlier this year and the other surrendered her license to AR this year as well.

I still remember a couple of years ago attempting to put a small, freestanding industrial building on the UCIAR? form. I only thought about it because the client said the report could be narrative or form and I thought form? huh? I'll look into this, maybe it's better and easier. I just looked thru the form, which is about 10-11 pages and got the chills and went back to making a new narrative report. I've reviewed some reports on that form, they're okay I guess, but now with SOW, they're way outdated. That and there's always a ton of blank spaces on the form or long explanations why parts aren't filled out.