• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Goodbye North Dakota!

Status
Not open for further replies.

stefan olafson

Thread Starter
Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
The North Dakota Appraisal Board met yesterday, December 11, 2007. I was present at the meeting to discuss and defend my ability to appraise. Unfortunately things went as expected yesterday in Bismarck. For those of you that don't know, my license was revoked in March of 2003 by the ND Appraisal Board (3 current members were members then). I've been actively attempting to once again become a certified appraiser since that time. I endured an administrative hearing in March of this year and in most respects won the case, unfortunately, in ND if the board doesn't like the outcome, they may change it or write their own opinion, they did the latter.

So, here, in a nutshell, is what transpired.

At the boards request I provided six appraisals, three were reviewed by an appraiser in Colorado and three by an appraiser in South Dakota.

The three appraisals reviewed by the South Dakota appraiser were relatively clean and well done. At least that is what the clients stated. All were small commercial properties, two in East Grand Forks, MN and one in Thief River Falls, MN. According to the review, I was compliant with Standard 2 throughout, I was compliant with Standard 1, he said; then he dug into the minutiae of the report and pulled out a couple of doozies. In the income approach, according to the reviewer, you have to summarize the information and directly tell the reader exactly why and how you arrived at a dollar figure for rent, I didn't, I stated a range in value, discussed the lack of comparables and gave my opinion as to where the rent should be. My summation was less than he wanted. I didn't include a vacancy and loss statement, apparently I subconsciously included that in my decision on rent, this was an error on my part. On all three appraisals I failed to analyze and discuss entrepreneurial profit in my RCN in the cost approach.

The Colorado reviewer found errors, a couple of typographical errors, (cloning), I didn't mention whether sales were cash, cash equivalent, or other, I stated the type of financing as warranty deed or contract for deed. If a contract for deed I disclosed the terms, and even though I gave date sold I didn't state date of transfer?

In my attempts to write a compliant report, I was given a new template for appraising ag property, a template used by a friend and an ARA with ASFMRA and made some math errors. The reviewer thought I should have made an adjustment for acreage size which I didn't, and while doing the cost approach I didn't properly support site values and failed to support site values on each of the sales when I did my allocation in the summation or compilation of the sales. This appraisal had some errors mainly because I was trying to provide an opinion of value to two brothers before one of them died, he was terminal with cancer when the appraisal was ordered. Not an excuse, I failed to comply with USPAP. The third appraisal also had math errors, differences of opinion of what to include and not to include, etc....

Thus, I'm finished with the appraisal business in North Dakota. I was invited to re-apply or appeal. I may investigate the appeal process just to see what that entails?

I've spent approximately ten years dealing with the ND Appraisal Board. I've lost my children's college education funds, I've lost all my savings, I've almost lost my wife a few times. I've spent countless hours studying USPAP, taken classes in USPAP, the approaches to value, and many other courses. I've been reviewed by; Alan Hummel (Iowa), James Cannon (Illinois) Rich Dubay (MN) Dennis Greene (AL), a lady from Nebraska or Kansas, Chris Greenwalt (CO), and Ken Simpson (SD). All consummate professionals, adapt at finding the minutiae in a report that is not in compliance.

My office is a small desk in the corner of the family room in my basement. What once was a relatively large (four appraisers) office with a full time office staff has been destroyed by my inability to write a report within the guidelines of these experts and the ND Appraisal Board. Mr. Ibach (Board Chair) stated yesterday that even though not listed as a client, each and every appraisal we complete has as an intended user the ND Appraisal Board! I let him know that if our clients had the same review standards as the board, there would only be a few appraisers working!

As a humorous end to this letter, please understand the following. This began with Al Hummel doing reviews back around the year 2000, he reviewed about eight reports and found errors. Future appraisals completed by myself and my staff incorporated those changes. (USPAP compliant? Right?); Subsequent reviews found those initial errors corrected but more were discovered and corrections were incorporated into my reports. (USPAP compliant? Right?); I fulfilled a settlement agreement with the board that included reviews of work product and about 50 hours of education, Mr. Cannon reviewed three appraisals for the board, with all the corrections suggested on the previous two occasions. As a precaution, one of those three was completed using the very same template one of the appraiser members of the board used. All three were found deficient. My license was revoked without ever having the opportunity to meet with the board!

Subsequent attempts to be compliant were hindered by the selection process of Joe Ibach (Board Chair) (Proven at the Admin Hearing), he consistently and repeatedly instructed the board secretary to request appraisals for review from the time frame before, or at the time of my revocation. After my attorney got an agreement from the board to review newer appraisals, the board again went back to the older appraisals, as directed by Joe Ibach (Board Chair). Subsequent reviews by board reviewers were found not in compliance with USPAP. If I was on the outside looking in to this debacle I'd have a couple of observations. #1 - Maybe the board has not provided adequate educational offerings for licensees? #2 - Maybe the board is using outside reviewers with an ideal opinion of USPAP, one which is typically not attainable by the typical appraiser?

I've taken and passed the Certified General License three times, I've taken and passed the 15 hour USPAP course and a number of 7 hour courses. I've been trained by the best of the best in the American Society of Farm Managers and Rural Appraisers. I've been appraising for over twenty eight years with NEVER a complaint from a client!

I'm off to new horizons, new challenges, and hopefully a new career outside of North Dakota. I'm a proud North Dakotan with roots deeply set in the small town of Mountain ND. I've never made an outward attempt to falsify information or hit a number in the appraisal business. I've always given each and every assignment my all, unfortunately, based on the opinion of two 'experts' and five citizens of North Dakota I can't continue on.
 
Joined
May 2, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
You can't fight the Government. None of us are perfect and the current appraisal standards almost invite petty technical errors, (although some on the forum never err, according to themselves) so if someone wants to bust your stones all they have to do is review enough of your work and some minor deficiencies will always be found.

So the good appraisers go off to flip burgers and the scumbag number hitters stay busy. Are we in Hell yet?
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
Stefan,
1. Did you have E/O, did your E/O support you though this process?
2. Once your in the crosshairs of the gov't, its hard to escape (just
ask Scooter Libby).
3. The complaint process is a zoo. I doubt there is much consistency
between states. I noticed a number of local, old timers in rural areas
also gave up after a while.
4. Maybe a better process would be that everyone has to submit a
random report to the state and they'd review the bottom 5 or 10%
and suggest corrective actions.
5. Sometimes it is better to cut your losses and move on.
6. Good luck.

Elliott
 

Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Sorry to hear about your lost. I don't know about fighting big brother. they have unlimited funds.

As we all know very few reports are perfect,(just yours and mind :flowers: :angry: ) others think so, so they judge us against a standard that if there were review would also find problems of some kind.

I will let you know how mine comes out next week. We are approaching a different way then USPAP for defence.
 

Frederick

Senior Member
Joined
Nov 2, 2005
Professional Status
Certified General Appraiser
State
New Jersey
Stefan,

It certainly sounds like you gave it your best shot. I hope this turns out to be an opportunity for something bigger and better for you.
 

Flygirl 152

Senior Member
Joined
May 3, 2006
Professional Status
Certified Residential Appraiser
State
California
I can't imagine how difficult this must be for you. Wishing you and your family the best where ever the path of life takes you.
 

Doug Meyer

Senior Member
Joined
Sep 13, 2003
Professional Status
Certified Residential Appraiser
State
Indiana
I wish you the best of luck on your new location.
 

TC

Elite Member
Gold Supporting Member
Joined
Jan 31, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Sounds like ND needed to bounce an appraiser for their quota and it was your turn in the barrel. Good luck in whatever comes next.

TC
 

Roscoeman

Member
Joined
Aug 18, 2005
Professional Status
Certified Residential Appraiser
State
Oregon
My heart and prayers go out to you and your family.

I hope you can make lemons into lemonade!!!
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks