Homes Wrongly Overvalued (Appraisal Fraud)

[Bill75]

This is wild stuff

 

[Elliott]

 

[OSU Beavers]

Just a developer trying to reduce his overhead.

Take a drink every time he mis-quotes USPAP and you will wake up on the floor the next morning.

 

[George Hatch]

Looks to me like this might be a Tiffany thread.

??? What did they think would happen BUT to increase assessed values when the pricing trends increase during a bull run?

So, the assessors in that state aren't operating off some form of Assessed Value? And the assessors are operating off of USPAP instead of a different standard?

In my state the assessors aren't licensed or subject to the jurisdiction of the BREA. The are credentialed to the board of Equalization (assessor central). The last time I looked their work didn't even qualify for experience hours for SL/CR/CG licensure.

This guy referred to "income" so we might not be talking about an SFR.

 

[Terrel L. Shields]

And the assessors are operating off of USPAP instead of a different standard?

I don't understand their complaint. The Assessors in my states of operation do value property using only public data. They don't consult the MLS. They sometimes poll sellers on a volunteer basis. But this is all based upon their own training. While our local assessor is a Cert. appraiser - he worked outside the public sphere to do so. He brought some common sense to the job by eliminating the past practices of assigning a value to worthless items and sheds that were falling in etc. Prior assessor had assigned at least $100 to them anyway under the notion that they were an eyesore and that would incentivize the owner to tear them down. There were some historic buildings destroyed that way - like the last tobacco shed in the county, picturesque barns, etc.

They are certified under the state's regulations, not under our appraisal board, nor do they adhere to USPAP. So, I don't get the gist of what the guy is about. Yes, FNMA is aiding and abetting higher prices via too-easy loans, and that is leading to higher valuations for taxes. I noticed a phenomenon years ago when I compared all the FHA financed sales in a town with the non-FHA sales in very old housing. FHA sales averaged almost 10% higher closing prices than cash or local bank financed sales. At the time (25 years ago) FNMA wasn't even touching those houses here. Only VA and FHA would finance except for local banks (usually 10 year loans- and yes, I do tend to look at mortgages) or even owner financing. In other words, FHA was inflating local prices which tend provided sufficient sales to jack up appraised prices for both the fee appraiser and the county assessor's appraisers.

 

[Tiffany Gibbons]

Looks to me like this might be a Tiffany thread.

??? What did they think would happen BUT to increase assessed values when the pricing trends increase during a bull run?

So, the assessors in that state aren't operating off some form of Assessed Value? And the assessors are operating off of USPAP instead of a different standard?

In my state the assessors aren't licensed or subject to the jurisdiction of the BREA. The are credentialed to the board of Equalization (assessor central). The last time I looked their work didn't even qualify for experience hours for SL/CR/CG licensure.

This guy referred to "income" so we might not be talking about an SFR.

Some Assessor employees are licensed in my state. But yeah, I had to earn the Tennessee Master Assessor credential from the BOE to handle appeals. Yes, Assessed values go up when sales prices and /or income goes up. But they can appeal their taxes every year, not just in reappraisal years.

 

[Tiffany Gibbons]

View attachment 91796

I hate looking at these crazy charts. My eyes!

 

[Carnivore]

I did not watch the entire youtube ... way above my paygrade and we can't change anything.
the guy is smart because he is making money every time you watch his youtubes. He has over 9,00 followers

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[sputnam]

Every profession has bad actors. Unfortunately, appraisers have never done much to self police. When policing is left to government and government like organizations, the usual solution isn't stomping on the bad guys. The usual response is making life harder for everyone.