Do You Wonder If It Will Happen To You?

[probasco]

I always worried, in the back of my mind that some day the state is going to send me a registered letter about a complaint from a client. Well after 26 years, it happened.

A question of value. Mine was $200k lower than the owners opinion. He had called, yelled at me and wanted his money back. no, i said. he threatened and did just that.

As fate would have it, my constant worried little mind has made me keep really good records. printing every bit of data, filing it away for years.

For 3 months I sweated bullets. I put the file together for the state and waited. Finally, the day came, the letter from the state arrived.

Oregon has a policy of publishing all their disciplnary actions. Names, offenses, fines, suspensions. For god and all to see.

Oh yeah, the letter, they concluded I had done a good job on comp selection, USPAP compliance and my report was golden.

My wife doesn't complain anymore when my files are 1-2 inches thick.
She knows the cost could be higher than a few sheets of paper, a little toner, and of course, a few extra minutes.

THIS LESSON WAS FREE

 

[OSU Beavers]

I thought Oregon dismissed Value Only, Frivolous or Retaliatory complaints? With so many Skippys out there writing fiction for fraud it seems like a waste of limited resources to nitpick USPAP on every report turned in. Just give it a once over for fraud and if its all good then save your time for the really bad ones. I guess they want to be extra thorough after the sub-prime melt down.

I worry that scum brokers, knowing that states are using the big stick, will try to bully appraisers to change values or overlook property faults by threatening to turn them in for BS reasons. "Since we can't use your appraisal due to the low value we are not going to pay for it. You marked R-2 for zoning when it is actually R-1 so we are going to turn you in to the state if you don't wave your fee or raise the value". Didn’t something like this happen to Ray Miller.

I remember my first "threat" like it was yesterday. Some wannabe cowboy developer plunked down a handful of modular homes in the middle of nowhere, listed them for sale and then tried to refi when they would not sell after six months. I ended up appraising them for between 3% and 7% less than the current listing price for each. Well cowboy went nuts. Called me up swearing, said Mrs Skippy had appraised them all a year before for 10% more and he was going to turn all six of my reports into the state and get my license revoked. Three strikes and you’re out and he had double what he needed, unless of course I would be willing to reconsider my values.

I tried to explain to the cowboy that he could not expect the homes to be valued for more than what they would not sell for after six months. Maybe Mrs Skippy did those appraisals for a construction loan and overestimated... Nope cowboy would not listen, said I blew my chance, I was through slam. Well I had only been on my own for a year and that phone call turned me pale white. An hour later after I pulled myself together I called the state to let them know that they may be getting a complaint and that I had everything ready to defend my work. Cowboy ended up getting another Miss Skippy to hit the numbers (in one case by adding an open patio to GLA) and never even called the state.

Now about Oregon's policy of publishing all their disciplinary actions, that Mrs Skippy agreed to not renew her license last year after multiple complaints and the Miss Skippy just got a slap on the wrist ($2500 fine and take some classes) for the three bad reports that the state knows of. I guess it’s not three strikes and you’re out.

Well probasco at least they know that you are one of the good guys now.

 

[jay trotta]

There are No Free Lesson's; your name will be slammed to all his friends -not that you want their business.

USPAP, was provided and implemented to use against our profession-it can be driven in any direction with relative ease. Knowing your market, selecting appropriate comps and not getting real crazy with the bottom line is key. My wondering point would be where did this fellow come up with he felt was a Value ? Tax Assessor ? Realtor ? etc.

Quick note; in most instances being under what someone considers their idea of Value, is considered, but not to an extreme point....most are thrown out without ever looking at USPAP, at least in my area.

 

[Steve Metz]

Can you file a civil suite on the homeowner and make him sweat a little?

 

[ghrousseau]

Can you file a civil suite on the homeowner and make him sweat a little?

For what??? Complaining?? Get use to this if we get the HVCC and the anonymous complaint line. 90% of the calls and complaints are going to be MB's and home owners complaining about undervaluations.

 

[jay trotta]

especially if their Tax Assessment has been inaccurate - if Owners are paying Taxes based on assessor's mass appraisal valuations and there off, we'll be spending more time Defending work, than working.

Jan 09 - Fee's should be based on excessive workload

 

[Jungle Boy]

Good work, probasco!

It's a shame that the inherent good guy worries more about keeping a good name than the inherent bad guy.

I wish it were them (bad guys) that sweated bullets each and every night for months at a time. Odds are that they sleep like babies

 

[Conservative in Virginia]

I got one of those 'letters' last fall. Owner complained I overvalued. It is a long convoluted story but the gist was
Owner contacted me to appraise home he was buying early 07- going thru private lender. Contract price 699 ish and HE was pushing me for a value of 750 so he could get cash out. There was a nearby sale in that range But others that IMO drew it down and final value 705ish. I sent the report and heard nothing more for several months (also never got paid)

Apparently a large snafoo with the private lender.. loan never funds or records (but it did close according to him) and he moves in.... took real owner a month or so but then he was evicted.
He calls me back and wants SAME appraisal to take to another lender (asks AGAIN to get the value up in the 780 range so he can get cash out)

Since appraisal date and stall in market and new sales which would not support my original estimation. (current sales support 680 ballpark)
He then decides since market has fallen I over appraised earlier and wants me to lower the old appraisal and write addendum that I was wrong all along and house NEVER was worth original price. :Eyecrazy::Eyecrazy:

He goes to State.. I sent my file and full detailed explanation of these 'antics' and have not heard a word.
But I am telling you this.. it scares the sh*t out of you and I am waiting for the next shoe to drop.

 

[Kevin A. Spellman]

A complaint was filed against me from a divorce appraisal and testimony service. The wife had to pay more to the husband, my client from the appraisal and from my testimony. I sat there across from the table from the “investigator” and the licensing board members, no findings, no merit from the complaint was found. The board found no violations.

Within a year the “investigator” who lives in the same city as my prior subject with the complaint applied for a mortgage and I received the appraisal assignment. I called to make the appointment, the investigator accepted the appointment and within an hour it was cancelled by the bank. The investigator called the bank and said he did not want an appraiser to do his appraisal from an appraiser who had a complaint on file.

 

[TN Pro]

A complaint was filed against me from a divorce appraisal and testimony service. The wife had to pay more to the husband, my client from the appraisal and from my testimony. I sat there across from the table from the “investigator” and the licensing board members, no findings, no merit from the complaint was found. The board found no violations.

Within a year the “investigator” who lives in the same city as my prior subject with the complaint applied for a mortgage and I received the appraisal assignment. I called to make the appointment, the investigator accepted the appointment and within an hour it was cancelled by the bank. The investigator called the bank and said he did not want an appraiser to do his appraisal from an appraiser who had a complaint on file.

So what happened when you called the board to complain about the investigator?