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Field Review For Potential Mentors

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Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
A Friend of mine had what I see as a great idea. I am thinking of adding this to a letter I am writing to my State Board. I would like to her some discussion on this subject.

In my area the biggest shop with most trainee's is the Number Hitter. No doubt he is turning out number hitters too. The suggestion was made that before an Appraiser can take on a trainee maybe he should have to have the States Approval.

The potential Supervisor should have to turn in a log of the last 100 or so appraisals they have performed. Then the state could pick 5-6 reports at random from the list and have them Reviewed by at least two Appraisers that work in the market area. I suggest at least two to prevent someone from bashing the competition. The review is then returned to the State Board who looks over the review and the results. Based on the results of the review they could then approve or ask for more samples if there is a problem. If something minor is found that the Super is doing wrong maye it would warrant a letter showing the problem but the Super is still approved.

I think this would accomplish two things. First the number hitters are not going to want their work Reviewed and wouldn't take on trainee's. Secondly it a good chance to make sure the Appraiser is competent and doing his work correctly. Then most likely he will teach his trainee proper work habits.

I know this is not fool proof, especially for you guys in NC! I would still like some input on this idea as I think it has great potential.
 

Austin

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Virginia
Jeff:
Every market has a fee shop that exists to fill out FNMA forms and make the numbers. FNMA knows that, the lenders know that, the Realtors know that, the state boards know that, hell everybody in this town knows that. They are a part of the system. I don’t know what life would be like without them. Then these mortgage companies would be on my case and people would be beating my door down pleading for an appraisal. It is bad enough now and I don’t do FNMA work. Just find your nitch and leave well enough alone. This business gets more complicated every day and we couldn’t survive without those big shops. I took an AI class two weeks ago and the instructor said he use to run a shop with 300 appraisers. There is no way he could supervise 300 appraisers but that is just what life in like in the big cities. No state board can survive that puts regulations before making $$$$. It is the American way. We small time cottage industry types are just feeding off the bigger system. Like a lawyer told me many moons ago: "You can't make any money in the reforming business."
About a year ago on this forum some NC appraiser posted that in his county there were something like 5 general certified, 12 certified residential, and 70 trainees in his county. I call these short timers the cat fish crowd because they are the bottom feeders that I refer all of the fast buck need a high appraisal crowd to. I got a call the other day. The guy was taking bankruptcy, said the judge said the tax assessment on his house looked to high to him, and he deeded a really low ball number to make the judge happy. I referred him to an expert in the field that is also an expert in manufactured home appraising. That kind of work is this appraisers nitch. Somebody has got to do it and if this appraiser loses his license there will be two more to take his place. At least it has been that way for the 31 years I have been in this business. Kind of like baseball-you win a few, you lose a few, and some are rained out.
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I appreciate your input Austin. Maybe it is matter of perspective but where I am the number hitter is doing great harm and I have heard rumor that a few of the older Appraiser are teamed up looking for a chance to turn him in. We are a small mostly rural county and he and his trainee's have taken..... no stolen a lot of work from all of us. I struggle to make a living here and I can't compete in this market with a lying number hitter.

I don't turn down jobs very often because I don't have as much work as many of you seem too. Number Hitter and trainee's however have the bulk of all the business and all the other Appraisers I have talked to have noticed theirs slowing down of they have lost work to him too.

I am working on getting into other areas of Appraising but fact is our market is 90% mortgage work. No getting around it. I don't mind him having his share but when he steals work from me and everyone else by his lies and illegal activity I can't sit around and do nothing. If I do I better find another line of work!

As I said I appreciate you input but I have to totally disagree.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
First the number hitters are not going to want their work Reviewed and wouldn't take on trainee's. Secondly it a good chance to make sure the Appraiser is competent and doing his work correctly

First, number hitters often think they ARE complying with USPAP and recognize only that trainee's are money in the bank. They are not giving up ready cash just in fear of review. Many think that they are really NOT responsible for 100% of the report providing the trainee signed the report.

Second, you assume the State Board had staff competent to review an appraisal correctly. That is a real leap of faith. What competent appraiser will take a state job at state pay when they can make twice that as a fee appraiser? You may be reviewed by a trainee...a trainee who is not themselves reviewed. Or you may be reviewed by your competition. Otherwise, are you being reviewed on a Corpus Christi beach house by an Amarillo appraiser?

I don't like either option.
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Good point Terrel. What I would like to see (not expect it) and forgot to mention would be people like me and you doing the field reviews. The state could order them or they could even send them though someone else so that the the reviewer didn't know why he was reviewing the reports. I also think they should use at least two different reviewers for each case to keep it balanced.

Yes that could be my competition. But I think the reviews need to be done by someone in my market, not my State Board my Representative or one of their staff. A real Appraiser in my area that knows the market. He wouldn't have to know who he was reviewing either. They could redact the name and license easy enough. I have done reviews without know who did the report.

As for your comment about the number hitter thinking they know what their doing I don't doubt some do. But thats OK, thats the whole point of reviewing several Appraisals.
 

JoAnn Kison-Todisco

Freshman Member
Joined
Jun 15, 2003
I've just found this site, and think y'all are FAB!

I don't know what the answer to this problem is, but the NH's are definitely making their mark on market values. Out here in CA, the Number Hitters are going to the Mortgage Brokers (my son is a MB) and promising to "hit the numbers" if the MB's promise to give them all their business. You can imagine how that kind of thing is driving up this market (as if it needs to go any higher!) I am in a neighborhood where values have increased 22% in the last 9 months!

I've been looking for a house myself, so last week I looked at a town house with approx $8,000 in upgrades. As soon as the next-door neighbor discovered the listed price, he listed his at the same price, except he has not one $ in upgrades. So, if the appraiser appraising the 2nd listing does not know of the upgrades in the 1st, he may well, if he's a NH, come in at the same value, thereby affecting the market in a most negative way.

There are hundreds of realtors, hundreds of sales, and hundreds of appraisers in this neck of the woods, so competition all the way around is tough. I'd love to see a reasonable way to solve this dilemma.
 
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