Crappy Hybrid Inspection

[George Hatch]

If it was just a couple minor items that would be one thing; but if they're making a series of errors then in the aggregate that undermines the credibility of the rest. The same as would be the case had the original appraiser done the inspection themself.

Just because this is a desktop assignment for the appraiser doesn't mean they have no obligation to read that inspection report and the pics for content. You wouldn't do that with any other data source - you'd read those listings and look at those pics in order to understand that datapoint before using it.

Reviewers and users letting most things slide as a matter of expediency is how we get appraisers who let most things slide as a matter of expediency.

 

[Andee]

I would go so far as to suggest that if the inspections from Fly-By-Night-Inspectors are known to be unreliable that the appraiser is getting into a situation were they would be unable to claim they had a reasonable basis to believe the accuracy of the facts asserted in those inspections.

The appraiser isn't responsible for the accuracy of those inspection reports (obviously), but they ARE responsible for the choices they make as to which inspections they believe to be accurate vs which they don't. "I had reason to believe this inspection report was accurate", so I used it; vs "I didn't believe the accuracy of that inspection report so that's why I declined to use it".

If the appraisers can't use an inspection company's inspection reports then that renders that company's reports unmarketable for the purposes of use in an appraisal assignment. If appraisers continue to use data they know to be error prone then that's on them. Moreover, those decisions undermines the legitimacy of their complaints about those types of assignments.

The appraiser is a salaried employee working for a company that owns a subsidiary that does the inspections. So if the appraiser thinks they are doing the inspections correctly, they are sadly mistaken. The appraiser has access to MLS and could have easily looked up the prior listing to see what work was completed and the same issues I saw with the square footage.

 

[George Hatch]

Agree completely. And to your point, an appraiser working as an employee owes more allegiance to their own license and credibility and professional obligations than they do to their employer's assembly line process. If a fee appraiser wouldn't allow a client to unilaterally limit their SOW or ethical conduct then the staff appraisers can't do it, either.

As professional appraisers we CERTIFY to our professional obligations in every appraisal report we sign. Regardless of the details of our employment or engagement there is no opt-in/opt-out choice for an appraiser to make.

 

[Andee]

Wow I do not get that picky about such minutia of low value items even in my own appraisal. Who cares about a grill or if the laundry room is on the second or first floor or has protective coating on the paint? Delving into a list of dinky items can undermine your own credibility, to the point where by the time you comment on substantial major items they might question your judgement. .

There is no protective coating over the drywall...basically the laundry room wasn't painted and there was no cost to cure within the report or mention of it. I know it seems like a lot of minutia but just like George pointed out, that and the grill were just some small things but there are a lot of small things in this report that can add up to become one major issue.

 

[Overimprovement]

The appraiser is a salaried employee working for a company that owns a subsidiary that does the inspections.

This is the slop being allowed in our industry right now. Too many big banks now own AMCs who then have staff appraisers. No conflict of interest there, is it? This is NO different than a lender having their own appraisal department doing their own purchase loan appraisals. And, as always, it will be the appraisers thrown under the bus. Now they are culpable to some extent, they still sign THEIR name and all that, I get that. But there is something wrong in an industry which is SUPPOSED to be independent, when a large percentage of available assignments are going to those who in effect give up their independence, or give up their job.

Again, I think it will take investors of GSE paper to get burned again before some of this is brought to light, because in the mean time, everyone wins. Well, except the appraiser. And the homeowner. But who cares about them?

 

[Andee]

I had not completely gone through the entire report before my post, just the section about the improvements comparing them to the pictures and information provided by the inspection.

I'm looking at comments made by the appraiser which in one area it states



then later in the report is says this



I don't even know what to say at this point about this report except they need a new one.

 

[bnmappraisal]

I had not completely gone through the entire report before my post, just the section about the improvements comparing them to the pictures and information provided by the inspection.

I'm looking at comments made by the appraiser which in one area it states

View attachment 65107

then later in the report is says this

View attachment 65108

I don't even know what to say at this point about this report except they need a new one.

(It won't let me copy the bold parts above so I had to reply to the whole post)

I don't see what you're saying ? Especially with the "Improvements section" part - Although I word my desktops (non lending) differently, they basically say the same thing

 

[Andee]

If anyone who does not like hybrids or thinks they should be greatly restricted in their use (count me in that group) gets the opportunity to review one--by all means be very detailed, diligent and provide the client a good reason to never order one again. We all know lenders want the cheapest and quickest way to get loans into the hands of the GSEs. If appraisals were completely optional starting tomorrow, how many would lenders order for loans going secondary market? Sometimes I wonder how many they would order if they were keeping the paper...

We unfortunately are in a position to prove our value for full assignments. So...if you see a crappy hybrid or desktop in a review, by all means flout your feathers and make em think next time--but be warned, you best be able to fully back up your statements in YOUR report.

I have been told too many times by so many people that I'm overly thorough and do way to much research. But at the end of the day I know I have a good report that is backed by my research and findings. I feel that if I don't do this I'm taking shortcuts and not providing an accurate report or accurate value. I get that there are a ton of differing opinions on how to get to that value but I think at the end of the day we should be close, not asking for exact but close.

As for reviews, I put the same effort into reviews, I definitely don't see the reason to just glance at them and call it good, even when I do agree with the value, I run the numbers to make sure I really do agree with the value.

 

[bnmappraisal]

As for reviews, I put the same effort into reviews, I definitely don't see the reason to just glance at them and call it good, even when I do agree with the value, I run the numbers to make sure I really do agree with the value.

I agree on this. I don't do a lot of review work, and the ones I get are usually Desktop reviews (not field reviews).
BUT! I do take the time to pull up each comp used to verify via County records and MLS (sometimes other sources) to make sure the info in the report is correct

Sadly, I know of some appraisers that DO NOT do any of that and just "take the word" of the OA
When I've been asked (by some clients in the past) why my review takes longer to complete I explain my process. I've been told more than once (again, in the past) "Oh, that's not how so and so does it!" I just shake my head and that's why they are "clients in the past"

 

[Andee]

(It won't let me copy the bold parts above so I had to reply to the whole post)

I don't see what you're saying ? Especially with the "Improvements section" part - Although I word my desktops (non lending) differently, they basically say the same thing

The bold parts are actual screenshots of what the appraiser wrote in the report. Before I wrote this, way tooooo early this morning, I only compared the inspection report and photos to the improvements section of the report. I had not finished reading the report, it was late/early, and I was too tired to finish reading.

Basically, the appraiser says in one section of the comments, or it's implied, that the sketch is theirs, which in the report says "The appraiser's sketch of the subject property...having performed field measurements.", this is in the comments section on page 3.

Later in the report, the appraiser says "...the visual interior and exterior inspection was NOT completed by the appraiser...", which is on the addendum.