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Definition Of A Number Hitter....

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Ghost Rider

Senior Member
Joined
Apr 27, 2003
Professional Status
Banking/Mortgage Industry
State
Connecticut
So, from all the number hitter discussions that have been floating around lately, I'm curious about just how far someone has to go to be considered one.......I know we are all supposed to be disinterested third parties, and are to give a totally unbiased person to give our expert opinion of value......But what do we all consider to be a "number hitter"??

Does the person have to make every value happen to be a number hitter?? For example, he/she ignores 10 good sales that closed within 3 months of the effective date of the appraisal, all within 1/2 of a mile from the subject??

What about if the sales price is $150,000. There are 4 good comps, with sales prices of $152,000; $150,000; $145,000; and $140,000. He ignores the low sale, and makes a couple adjustments that are slightly questionable (perhaps a large GLA adjustment, or makes a subjective quality adjustment on the low sale to bring it up, and brings it in for $150K?? Does it matter if it is a sale at $150K, or if it is a refi where the deal dies if it comes in under $150K?? Does an extra $1,000 make a huge difference in the big scheme of things??

I've done enough reviews, and worked with enough people to be able to spot an obviously pushed appraisal, they are easy to see, and even the most raw of trainees SHOULD be able to see it. But where do you all draw the line?? Will you say NO to a loan officer or a good client when that extra $1,500 dollars (which could be added to the appraisal with a slightly different adjustment than the one you made) kills a deal, and upsets a LOT of people?????? How ethical do you have to be to be able to sleep at night??
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
I am sorry, but I could not keep focused on your post. Your Avatar was much more interesting. I know it is just a circular mpeg, but I kept hoping there would be more if I kept watching.

In answer to your question, the RE market is imperfect and constantly changing. Therefore, the appraisal process is imperfect. That is why it is called an opinion of value. We have to make informed decisions and base our opinon on factual data. In your scenario, you said there were four sales at the high end of the range. Usually, there is a reason for this. Either an appreciating market or updates, upgrades, lot size, etc.

I really think we all know what a number hitter is. A number hitter ignores basic appraisal techniques and ignores sales in the subject addition. Most utilize sales in better addition make no comments about condition, why they ignored the sales in the addition, etc. It would be very difficult to accuse any appraiser of being a numer hitter if they used similar size/age home sales from the subject's addition, unless you have knowledge of the subject property and why it is not similar to the higher, but similar on paper sales. Under review, we can not prove what we do not know. All we can prove is that there were more similar sales available from the subject's true market area. As we all know, the true definition of a "number hitter" is easy to spot and they have no defense under review.
 

EDWARD BERRY

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Arkansas
While women with pink underware are OK it is NOT welcome in Professional Circles.

$1,500? Who is that good?

In an expanding market almost all sales are at the top of the market in our area.

A number hitter is one that searches for the highest $/sf and used those even though they are not in equal locations.

There are many more examples-this one is most common in our area.

Just talked to an owner that is reselling in a good lake area, got appraisal when she bought, ($130,000)now selling, new appraisal $10,000 short by a "liberial" appraiser.

What are others seeing #hitters doing?
Ed.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
1. The big sin is going outside of the neighborhood for sales while ignoring sales within 2 blocks of similar age/quality homes.

2. Just reviewed the ultimate number hitter. Apparently there was some funny business regarding a home in the $200-250K market. Needed $425K. :blink: Appraiser CREATED 3 sales. Falsified the fact that they sold, sale price, size of homes. This thing was created out of whole cloth. The only thing that was reasonable was that the homes actually existed at the addresses referenced. The appraiser was blanked out or I would have turned it over to the state for a hanging offense. Hopefully, the client will pull the original and go after the appraiser.

Roger
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Roger:

I personally would send this in to my State Board with a strongly worded reccomendation that they pursue the obvious fraud by requesting a copy from the lender.... that degree of FRAUD cannot and should not be condoned. whether you personally know who perpetrated it or not.

sic 'em :angry:
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
MHM.....Is that your new trainee arriving for the appraisal inspection????? :rofl:

You know you are a "numbers hitter when".......

1. The appraisal order form states "if you can't reach this value, stop immediately and call us"....and you do!

2. You consistently consider your subject property to be superior in condition to every comparable and make an adjustment of $10,000 across the board.

3. None of your comparables are from the same neighborhood.

4. The exact same model next door sold yesterday and is not one of your comps.

5. You don't want any of your peers to see your work...ever.

You might be a "numbers hitter if"....

1. You never do an appraisal where the final value conclusion doesn't support the sales price or refinance amount.

2. You always look at only the highest sales in the market and use them as comps.

3. You do a CMA and only bracket the sales price or refi amount $10,000 in each direction.

4. You are always being called by lenders who say ...."we got this appraisal and it came in low and we know you can fix this for us".

5. You are reluctant to make adjustments for sales concessions and always use comps more than 6 months old in a declining market.


Oh my God......I think I might be a.........._________________ (fill in the blank).

Now where is the avatar again.....this I gotta see! :rofl:
 

Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
MHMerriman I was going to thank you for sharing that new avatar with us, but my wife appeared out of nowhere and now I'll be nursing wounds for the next few days. She no longer believes this is an appraisal forum. Maybe I can get Wayne or Pam to write a letter or something.
 

David S. Roberson

Senior Member
Gold Supporting Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
That is the best post ever. I have no idea what it's about, but it is absolutely magnificent.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Hey Mike, those would good ones to add to your list of "reasons to decline the order".
 

Mike Simpson

Senior Member
Joined
Jan 30, 2002
Women in pink underware are not welcome in professional circles??? Where have you been??? In some professional circles they're a requirement!!! Loosen your tie!!!

If someone has to ask what the definition of a number hitter is--they haven't been in this business very long--or they're a number hitter--or they've got their head buried in the sand.

I'm with Mike G. on this one--when someone starts ignoring factual information or making up information...you just might be a number hitter (to be read in the spirit of a Jeff Foxworthy show).

-Mike
 
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