Complaint from State of Michigan

[Eli]

Attorney General? Dang. You need a lawyer. I would counter sue someone.

 

[J Grant]

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The short answer, as a double-entendre, is "Far Out." The medium-length answer pertains to the fact that outliers are an acceptible aspect of statistical analylsis, absent any requirement to 'splain exactly why they are so distant from the median, leading to the long version: quantitatively, a pre-determined distance from the center of normal distribution, measured in standard deviations, could logically be determined as an outlier, athough we're appraisers rather than social scientists, although I'd prefer to have a plausible answer to explain why I made any decision expressed in writing in a report.

That is why appraisals are not done with statistics in isolation - higher than median does not necessarily make a comp an outlier.

An outlier in appraisal context means the price ( and or terms) are an outlier to the most probable price a property should bring. In other words, an outlier is beyond the reasonable range of the most probable price for a property.

A superior property should bring a high price, therefore a high price can also the most probable price for a superior property. But a high price paid for a low quality property would be an outlier.

 

[Eli]

I would contact your state representative too. Like senator i.e. and governor too.

Something is not kosher.

 

[Artemis Fowl]

Attorney General? In the future refer to her as the Grand High Empress in Charge of Everything and Decider in Chief of the Universe.
Interesting that she would get directly involved. That's either par for the course or there is a relationship somewhere...if so please find it and expose it.
Get help as suggested.

 

[CANative]

From AO1:

The requirement for the appraiser to analyze and report sales history and related information is fundamental to
the appraisal process. Just as the appraiser must analyze the details of pending and recent sales of comparable
properties, the appraiser must also take into account the various factors associated with all pending and recent sales
of the subject property itself. This is not to say that the agreed price in a pending or recent sale of the subject property
is necessarily representative of value as defined in the report, but the appraiser’s failure to analyze and report these
facts may exclude important information from the sales comparison approach. Information pertaining to the current
market status and the sales history of the subject property may also be useful information for the determination of
highest and best use or the analysis of market trends.

Putting the analysis of the subject prior sale in an adjustment table is one way to demonstrate your analysis.

 

[Real Deal]

I did an appraisal of a waterfront property for an AMC. The subject had been recently purchase about 1.5 years earlier. My report used the subject as a comparable and adjusted for the updates and time. The subject previous sale was an arms length sale. The AMC had someone to come in and appraise the property for 100k more than the sale 1.5 years earlier. My sale was 50k higher than the subject sale 1.5 years ago. The AMC filed a complaint and my E&O company assisted with me in getting an attorney to respond. Now the Attorney General of Michigan is pursuing the matter further. It is to the point where my the AMC is going for blood, because I would not give them the higher value. I did 50+ appraisals for this AMC over a 2 year period and now this over 1 report where I would not give them the value they wanted. My E&O (Navigators Insurance) may not help me at this point, but I was checking to see if anyone had any suggestions for me now since I may have to represent myself and defend my report in court.

Is the Attorney General after you or the AMC ? Where is the AMC located and what is their name ?