Comp checks and pencil searches - again

[Tim Hicks (Texas)]

Mortgage Company owner re-fi's in April. Staff appraiser appraises and pushes to $625,000 to appease owner. Six months later Mortgage company owner sells his home to California buyer for $725,000. Owner tells appraiser to hit value and make his home 4,100 SF. Appraiser explains he can't, it is only 3,850 SF and he would be lucky to get the $625,000 he appraised it for six months ago. Is this an appraisal?

End of story: Special appraiser is called in, house is now 4,100 SF (no way), comps are used from country club and gated addition and new homes not 60-80 year old remodels, new value $750,000, deal closed through owner's company. Nice profit of $100,000 in six months, after the $100,000 cash out six months earlier.

How would you like to be the uninformed buyer. This is why the "willing buyer and willing seller" sloagan is a load of crap used to pressure appraisers to hit values.

I am not the staff appraiser. I just hear his stories every week on Wednesday lunches. I will not accept orders from this company, but that dosn't matter, because I am not special enough.

 

[Charlotte Dixon]

I haven't had many requests for "comp checks" lately, but what I have seen (from unknown companies) is a Request For Appraisal with a hand written note. "Please advise us immediately if the value stated beow can not be obtained: :roll: Sneakier! On these, I feel obligated to call them (money out) and exclaim...."how would I know" ??? Same old games, just disguised!

 

[Doug Smith SRA]

Some "solid advice" on pencil searches and comp runs may be found at:

http://www.appraisaltoday.com/pencil_search.htm

 

[Mike Garrett RAA]

Gotta love it!!!