How can I get an ACCURATE appraisal?

[tonywilkey]

Hello,

I own a LOT and have house plans for a nice custom house. In this thread I give more details( http://appraisersforum.com/showthread.php?t=137768 ).

Two bank requested appraisals came in at $310K and $213K. How can I get an accurate appraisal for my use? I want to decide whether to sell my LOT and just buy a house or continue trying get a construction loan and pay for another appraisal hoping I win the appraisal lottery.

Your help would be appreciated.

Tony Wilkey

 

[Hall McClenahan]

Good afternoon,

I have read your prior post and the first thing that jumped out at me is your expectations. You are going to have to make a few changes if you want to come out ahead in the end. You apparently are living in one State and investing in another so expect red flags to appear in the lenders eyes.

First thing nobody owes you a loan, construction loans have dried up because every Tom, Dick, and Harry that thought they could swing a hammer tried to cash in when the interest rates dropped. Now the lenders are sitting on new inventory they can't give away.

Second, you are willing to accept a debt over $200,000.00 but appear to be unwilling to invest a pittance to insure it is a wise move.

Third, any appraisal you order will be useful only to you. No lender will accept it. Your perception of what an appraisal is for and whom it protects may need to be modified.

I agree that the first thing you need to do is find out if your lot is worth keeping.

Start here: http://www.talcb.state.tx.us/appraisers/appraiser_search.asp

Get a list of appraisers that work in the county your lot is located. Look for office location and proximity to your lot.

See if they post here and read their posts. Call the list and interview them. Will they be the one doing the appraisal or will it be an associate?
How long have they appraised in that area? Check for disciplinary actions filed against them. If they do not post here or you can't find them, come back and ask us if we know them.

With a little effort you will find a professional appraiser you can trust. Ask lots of questions until you know exactly what you have, what you will be receiving, and when.


Good luck!

 

[Pamela Crowley (Florida)]

Ask the appraiser for a comp check so you will know if you should spend any money first. If they do it, stay away from that appraiser. If they won't do a comp check for you, hire that appraiser and find out the real truth about your real estate hopes.

 

[Mztk1]

Just like when you go to any other professional for the first time, you need to interview them and find out what their experience level is, how many years they've worked in the market, if they do a lot of vacant lot appraisals and custom built on vacant lot appraisals. Heck, you can get crazy and ask for references.

Whatever you do, when you call and ask, know what you are looking for. Do you want an appraiser with at least 5 years experience in that market? 10? Who has done at least 50 similar type of reports? 25? 100?

Personally, I think the type of job you are looking at requires an appraiser with 5 or more years of solid residential experience, who has been in that market doing mostly residential work for at least 2 years, and who has done at least a couple dozen front end, or new build assignments.

In addition, learn some of the more technical things concerning appraisals and quiz the appraisers you speak with. Make sure you are comfortable with their knowledge, experience and demeanor.

 

[Webbed Feet]

Hello,

I own a LOT and have house plans for a nice custom house. In this thread I give more details( http://appraisersforum.com/showthread.php?t=137768 ).

Two bank requested appraisals came in at $310K and $213K. How can I get an accurate appraisal for my use? I want to decide whether to sell my LOT and just buy a house or continue trying get a construction loan and pay for another appraisal hoping I win the appraisal lottery.

Your help would be appreciated.

Tony Wilkey

Mr. Wilkey,

I do appreciate your view on this. But first we have to cover one thing not yet covered by the other answers to you. The starting fact is there is no such thing as an "Accurate" real estate appraisal. The word accurate does not work in union with the fact an appraisal is an "opinion" and the definition of value required by the banks that starts out "The most probable price........ " .... "Probable" and "Accurate" do not march down the street hand in hand, or work in a real estate appraisal. And this means even if you see the word "accurate" used on the top of a Fannie Mae form reporting an appraisal. Fannie screwed the pooch on that one.
"Accurate" is not a standard of the appraisal industry.

Now that we are past the above. The appraisal of land only is one of the most difficult assignment types. It is obvious that somebody was wrong, or not "Credible" in their analysis depending on if both had the exact same SOW (scope of work) and both done about the same time.

I regret to inform you, and the public, that the credibility of my industry has been tossed out the window by banks, mortgage brokers, appraisal management companies, and the like, who hire appraisers only for fast results and cheap prices. They only give lip service about giving a rip about hiring appraisers who do a good job. We have a saying in my little group. You can have it cheap, or fast, or with quality. Pick two out of the three, you can't have all three. The sources all of the public goes to for loans all only pick the first two and they then lie to you all about having obtained the last one. Honestly, cheap and quality don't really work all that well together. Sometimes you might get that one.

Webbed.

 

[Webbed Feet]

Ps

Mr. Wilkey,

P.S. I forgot something. Most of the sources the public is going to for loans?... Yeah, those sources seek cheap appraisals. The catch is the majority of them are NOT passing any savings on to you. Nope! ... They pay the appraiser $175 and then charge you $400 or more for "the appraisal." They do this by owning an appraisal management company to shift the profit into their pockets and then not have to disclose to you they did not "pay" $400 for that appraisal. They paid their own subsidiary that, or the one they own partially with a title company. Making it appear the appraisal cost that and they "paid" that.

Isn't truth in lending fun!!!!!!

Webbed.