Guess I need to turn this one in!

[Stephen J. Vertin MAI]

Let me get this straight. You want to turn in the reports simply because they have a value difference of 8 percent?

When did the State become the value police?

 

[mp2277]

the value difference (if you are referring to my post) is not the biggest issue, it is that there were 3 identicle comps within 3 blocks, 2 on the same street, why go over a mile away in a much superior development and get 1 for 280 when there a three sitting right there at 230ish. It was simply a push for the number, not legitimate at all. If there had only been 2 comps in the immediate area, there are other very similar areas within a mile where the houses are much more similar. And, 8% is 8% ... what if it had been a million dollar property, is 8% still OK???

 

[Stephen J. Vertin MAI]

During the first savings and loan crises the FDIC and RTC allowed an acceptable value difference of 25 percent in commercial property appraisals. Most assets exceeded $5,000,000. An appraisal is an estimate not a gospel. There is a range in value. Why did you leave out the part he used 2 of the same comps (on the same block as did you) and had a total of 5 sales in your second agreement? An 8 percent difference sounds more like a professional disagreement than a serious issue. Have you ever had a report writing class? If so you would see a lot of folks come up with various values given the same facts. Further not everyone uses the same comps.

Markets tend toward equilibrium. This means no piece of real estate is exactly like another and adjustments for different factors can and should be made in the appraisal process simply due to equilibrium. If the other appraiser adjusted for location, your point is irrelevant. The factor has been neutralized. If appraising were just a matter of finding the closest comps it would be an excellent argument for AVM's. Why use people. Just find the closest houses that recently sold.

By the way welcome to the forum. It is always good to see new people.

 

[mp2277]

" If appraising were just a matter of finding the closest comps it would be an excellent argument for AVM's. Why use people. Just find the closest houses that recently sold."

Well, my definition of a comp is a comparable. Are you really OK with using two out of three identicle houses and going over a mile away and getting a superior house in a superior neighborhood that sold for 50k more just to bump the value???? All of the houses in the neighborhood sold for around 230, and the one a mile away, more than 300 sf bigger selling for 50k more is not a comp in my book. Please, I want to hear from other members on this. Maybe I'm not a certified General, but I do think I know a comp when I see one. I mean in my area there is an area known as Southwest Roanoke where yoiu can get a 2300 sf house built inthe 20's for around 250k, nice area. As the crow flies, a little over a mile away the identicle house in South Roanoke will sell for the upper 400's. So, by your logic, I can use 2 250k houses in SW city and 1 450 house in South city and value my subject at 330. Interesting, hum...

 

[Pamela Crowley (Florida)]

I agree with mp2277. "Cherry picking" sales that are NOT the newest sales of the nearest and most similar to the subject is EXACTLY the MO of the skippy appraiser that the lenders love so much. Ignoring the sales that would be the BEST and most qualified comps is wrong and is NOT simply a difference of opinion.

 

[JT1974]

Identicle

Identical woohoo

 

[Stephen J. Vertin MAI]

I love how you jump in on things Pam with no input from the other side. It is your typical MO. How do you know this guy was cherry picking? Have you seen both reports?

I have not and I am tired of the hang them mentality of this section of the forum. I suppose you believe there is no such thing as a professional disagreement? Do you think every appraiser who does not choose the same comp as you is cherry picking?

What I believe is unethical is the advice people give here about turn in reports without seeing them. What ever happen to Std 3?

 

[Kevin Mc]

What I believe is unethical is the advice people give here about turn in reports without seeing them. What ever happen to Std 3?

I agree. Unless there are clear cut USPAP violations turning in a report for comp selection and a value difference of 8% is most likely a waste of time and will go nowhere. Turn the report in for USPAP violations only. That appears to be what most boards will sink their teeth into.

 

[Tom Eichholz]

I haven't seen anything this bad for a long time. I was really amazed. I'll have to send this off to the state. I looked up this guy's license and just upgraded from trainee 2 months ago. I wonder how long he'll be sending out crap appraisals before the state gets around to him.

:new_2gunsfiring_v1:

Your concern is commendable. However, unless you are absolutely positively certain that this was a fraudulent & intentionally misleading report, I would not play cop in this situation. Just do YOUR job and appraise it as you see it. And then let the client(s) decide.

These types of things usually have a way of shaking out...or biting you back. Think twice. (Maybe that's why they are having "trouble" with his license?)

 

[Jay Faustini]

Fabricated Comparables

I just reviewed a report that definitely needs to go to the state board. All the sales data was fabricated. Not a single piece of hard data on 7 comps was correct (sale date, sale price.) Active listings were given a sale date and price and represented as closed sales. Other closed sales were represented as active listings. Some recently closed sales were given new sale prices and dates. Additionally, none of the properties used were the best comps available (using either the appraiser's fabricated prices/dates or the actual ones.) I found three very good comps within 1/2 a mile with COE dates under 3 weeks old, including a model match.

The appraiser explained his choice of distant comps with old COE dates on the fact that there is strong demand and lack of property turnover. This is in an REO driven neighborhood which has been that way for some time and has even begun to stabilize and clear its inventory in the last few months (after a 60-65% drop).

The strange thing about this one was that the appraiser was an in-house appraiser for the bank that made the loan on the sale. Looks like he just made up comparables to hit the sale price (which was about 8% higher than market value at the time).

As this is the first time I will be reporting an appraiser to the OREA, I have some procedural questions. I've contacted the enforcement division, but not surprisingly, I have not received a call back yet.

I figure that I can get answers to my questions a lot quicker here.

So my questions are:
Will the OREA care about this one even though the overvaluation was minimal / less than 10%?
Do I need to fill out a complaint form with the OREA, or can I just send the report with a cover letter?
Should I include my review appraisal?
Can I file this with the OREA electronically, or do I need to send paper?