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Complaints by Appraisers

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laynelucia

Sophomore Member
Joined
Jul 19, 2004
Professional Status
Licensed Appraiser
State
Michigan
I have had several Appraisers contact me about the system of Appraisal Board in Michigan with deep concerns. It appears there are Appraisers making it a habit to file complaints against other Appraisers in Michigan with no backing or regard to the clients and/or homeowners to whom the Appraisal was done for. I have reviewed many of these issues and I find that how this is being handled is not only unethical, but a conflict of interest of those reviewing the complaints. Also, the disimination of the homeowners, Appraisers and/or Banks personal information can be construed as Liable, a breach of USPAP ethics and personal information laws. Here is a typical complaint:

Appraiser A reviews an Appraisal, or is visited by someone mad at Appraiser B.
Appraiser A lowballs or high balls the Appraisal on a review (which almost 100% do not conform to proper USPAP and MCL standards..and sends it into the State.
The State must send out a letter for Appraiser B to respond to the complaint
Appraiser B responds and if deemed to be moved to a formal Complaint, Appraiser B must chose the following:
A.) Meet with a person from the State and...get this...one of their competitors to negotiate a settlement and go over the Appraisal.
B.) Show just cause in writing why the appraiser should not be fined and/or worse, which may or may not lead to...
C.) A formal hearing in front of..get this again....Competitors of Appraiser B

Keep in mind the original intention of the complaintant now has no bearing, no matter how grevious and Appraiser B's Appraisal is forensically picked apart.

For argument sake, I have taken one of these appraisals and given the data on the home to be appraised to 20 seperate appraisers and guess what, 20 different values, adjustments and conclusions were reached.

My point of this diatribe is as follows: We MUST STOP Appraisers from being allowed to file complaints against their competitors without the backing of the person for whom the Appraisal was performed. This is a Major Ethics Breach and Conflict of Interest.

I am putting together a website that will list those Appraisers that file complaints against other Appraisers so that all of you may be aware of whom not to do business with and stay clear of as these appraisers, after many reviews of your complaints out there appear to be trying to "thin the heard" not of bad Appraisers, but individuals not strong enough to financially take it and/or emotionally. WE MUST BAND TOGETHER AND WEED OUT THESE APPRAISERS.

Anytime I have an issue with someones appraisal through a Review and or general concern, I contact them 100% OF THE TIME.

DONT LET THESE COWARDS GET AWAY, SEND ME YOUR COMPLAINTS TODAY.

I have set up a special email at [email protected] and the website, which is under construction is www.USPREX.com
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
I believe we have a forum member working on starting a 'Board Watch' website that might help you. I'll bring the two of you together. I'm hearing about and seeing the evidence of some really bad things happening in a growing number of States. First most States did next to nothing and skippy was let go, now we have decent appraisers being disciplined for minor to made up infractions. BAD things happening.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
My point of this diatribe is as follows: We MUST STOP Appraisers from being allowed to file complaints against their competitors without the backing of the person for whom the Appraisal was performed. This is a Major Ethics Breach and Conflict of Interest.

I completely disagree. Many people do not know what they are reading (user of the report) and getting the client to agree would happen very seldom. How many LO's or MB's are going to agree to get involved in the reporting of an appraiser?

I have personally talked to a Michigan Board member and a Michigan investigator. They throw out complaints over value disputes. They are looking for reporting practice in the report, USPAP violations and incompetency among other things.

A well written report will stand by itself in a complaint. The state does not just fine or punish appraisers doing their jobs. They take this seriously as it affects a person's livelihood, as they should.

There are many appraisers in Michigan and other states that have no clue what they are doing because they were trained wrong, which should merit continuing education. There are many appraisers who know what they are doing and continue to do so; those are the ones who need to find a new profession. They need to be reported without the requirement of the initial client.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Timothy Evans makes some very valid points. It really should be fair and legitimate. It does take time and an experienced appraiser to find out what is wrong and what is right.
 

laynelucia

Sophomore Member
Joined
Jul 19, 2004
Professional Status
Licensed Appraiser
State
Michigan
Pamela, I do not know you personally, but I have been keeping close watch on your statements and what you have been through. I appreciate the response and sentiment as you apprear to truly care about people and this profession. I look forward to conversing with the person who is puttting together a board watch site. This madness must stop! We have enough issues dealing with lenders attempting to purvay their losses through incompitent loans and worse onto our EO and liability. To also have our constiuients "going after" also too is absolute madness.
 

laynelucia

Sophomore Member
Joined
Jul 19, 2004
Professional Status
Licensed Appraiser
State
Michigan
Timothy, I concur that Appraisers need direction and proper traing, but to fine someone and put a mar on their permant record for an Appraisal they performed a majority of the time over 2 years in the past. Ludicrous. The board should be much heavier on the requiring education without posting complaints. What does posting complaints and fining Appraisers accomplish...nothing. I can understand grevious situations like fraud and intentional deception, but I have seen the board fine and sanction someone for not supporting the land value in the cost approach and another for not actually stating the neighborhood of some of the comps was superior, which is a discriminatory clause. Things must change! I believe we must develop a system of testing when there is an issue and then proper education pursued. However, it appears that the only thing the board is interested in is forensically taking apart an appraisal to prove their point! Thats Madness.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
I can understand grevious situations like fraud and intentional deception, but I have seen the board fine and sanction someone for not supporting the land value in the cost approach and another for not actually stating the neighborhood of some of the comps was superior, which is a discriminatory clause. Things must change!

The way I learned to appraise, this is Appraisal 101. Too many are not supporting what they write (or they don't write). If you cite a land value then you should support it. If comparables are in a superior (or inferior) neighborhood you should report that in the appraisal.
.....which is a discriminatory clause.....

An analysis of a neighborhood and deeming it inferior is not discriminatory. It is factual based on market data. School districts, selling prices, demographics, crime statistics, etc. are all facts that can be researched and reported.

Is deeming one house inferior to another discriminatory?

How about deeming the Flint economy inferior to the Lansing economy?
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
...My point of this diatribe is as follows: We MUST STOP Appraisers from being allowed to file complaints against their competitors without the backing of the person for whom the Appraisal was performed. This is a Major Ethics Breach and Conflict of Interest...

So...if I come into possession of a report of an appraisal that I deem as MUCH less than "satisfactory", I would have to turn to the (by way of example) mortgage broker who was the client and ask that MB if they would support me in my effort to forward the appraisal onto my state's appraiser regulatory agency?
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
...I can understand grevious situations like fraud and intentional deception, but I have seen the board fine and sanction someone for not supporting the land value in the cost approach and another for not actually stating the neighborhood of some of the comps was superior, which is a discriminatory clause...

Hmmmmm.

What am I missing?

As I read your statement, I conclude that the regulatory agency is just doing their job.

I obviously don't have all of the specifics for what you reference, so I am taking some liberties and making a few assumptions; thus:

1st, one just can't "wing it" when offering an opinion of the value of the land in the cost approach.

2nd, some neighborhoods are "superior" (as witnessed by differences in values) to other neighborhoods, are they not? If acknowledging (and adjusting as appropriate) that one neighborhood is superior to another, is "discrimination", it is "discrimination" as in "to make distinctions" (nothing bad here).

Just so you know...I certainly do not support willy-nilly complaints to any state's regulatory agency.
 

Jason Barber

Junior Member
Joined
Feb 16, 2006
Professional Status
Certified Residential Appraiser
State
Michigan
Appraiser B must chose the following:
A.) Meet with a person from the State and...get this...one of their competitors to negotiate a settlement and go over the Appraisal.
B.) Show just cause in writing why the appraiser should not be fined and/or worse, which may or may not lead to...
C.) A formal hearing in front of..get this again....Competitors of Appraiser B

I really don't have a problem with any of this. A "competitor" is also considered a peer and USPAP states clearly that we should do as our peers do. Scope of Work should always take into consideration what your peers are doing.

I am putting together a website that will list those Appraisers that file complaints against other Appraisers so that all of you may be aware of whom not to do business with and stay clear of as these appraisers

So if I have a legitimate complaint to file against a negligent appraiser... my name is now going to appear on some website telling others not to do business with me??? Sounds counterproductive to me. :shrug:

laynelucia, I think your extremely upset at the moment and not thinking this whole thing through clearly. Perhaps you should meet with some of your peers and determine what it is exactly that you are trying to accomplish. I would proceed with caution in your attempt to capture all these "bad guys" (or cowards as you call them). Slandering just one "good guy" along the way would be damaging to your cause and might even land you in court.
 
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