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How To Get Your Appraisal Sent Out For A Review

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Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
This is addressed primarily to the newer appraisers but some older ones might want to pay attention.

Having done numerous reviews for compliance, factuality, and possible fraud, I am taking a moment to show you how you too can have your appraisal pulled for a desk/field review and possible in-depth review for fraud or violations of USPAP, etc.

1. Go way outside of the immediate neighborhood for a sale, and the one you come up with is a different age/style of home --- and don't comment or explain.

2. Make adjustments that are inconsistent with what you have said previously in the report. For example, you say a 1 acre site has a value of $25,000 but then only adjust the sale with 5 acres $2000.

3. Say the subject is average in condition, not making any special comments about the subject or its condition, then adjust all the sales up for inferior condition (can anybody say "made ready for sale" in reference to the comps?)

4. The subject has no outbuildings but the sales have large barns, shops, etc; but the adjustments appear more like patio/porch adjustments.

5. Make absolutely no supporting comments about the subject and the comparable sales, but rather put a statement along the lines of "all adjustments are based on MLS data, observed exterior examination, and the market, tempered by the judgement of the appraiser". If it appears from a casual review of the grid that the adjustments are questionable, then the appraiser doesn't support the adjustments, the red flag goes up. What's the appraiser trying to hide or do here?

6. If you're doing a manufactured home on an acreage lot and all you use are package sales, (these reflect cost, not market), you're begging for a review.

I'm sure that there are others, but these items just keep popping up in the files sent to us for review. So if I'm seeing these issues being raised by the UWs and Quality Control people, appraisers might want to pay a little more attention.

Roger
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
outbuildings but the sales have large barns, shops, etc; but the adjustments appear more like patio/porch adjustments.


Never more than 15%, too.

a different age/style of home

Like one I saw of a 30-40's Shotgun house with add on comped to 1970's ranch style houses?? Jacked that puppy up about $15,000.



average in condition

One of my subs got gnawed from me over that Average BS...No carpet in one room and no trim around doors, closets (being remodeled)...called it average condition....no adjustments....Other than $2,500 worth of repairs needed, it was average. cough.

What's the appraiser trying to hide

Not hiding anything but the fact the adjustments were PFA - pulled from ...air.

ter
 

Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
My personal favorite is when the canned 'subject has had average maintenance' statement is used. No mention of remodeling, updating, nothing. Then, YOWSA! How'd that average puppy's actual life get whacked in less than half on the effective age??? Bologna!! You tell me a 50 year old house is approximately 20 years effective age, you'd better tell me how it got there!

My biggest complaint on doing reviews, it's not the money or time pressure. I'm not crazy about the pay, but I do them as I feel it's my small way of helping keep our profession honest. I do, however, wish there was some way for the pictures of the original appraisal to be emailed rather than faxed. Those blackish boxes do nothing but eat our fax toner. Can't see a dad blamed thing.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Cat:

:eek: I don't often disagree with you... but in some of my market areas that 'average maintainance' for the area HAS resulted in about that spread of actual to effective ages. I might throw one line in the neighborhood that says most homes in the area have been remodeled (kitchends and baths) and significantly upgraded.

Got pilloried for that.... <_<

My one line explanation of see comment line two paragraph one of neighborhood comments.... and sales comparison summary comments....
Comps section said 'all had similar upgrades and remodeling'.

two lines said it all. IF you knew the neighborhood and made it all go away. :p Underwriter was quite happy.


Hey it is a summary report right! :twisted:
So sayeth the gal who tends to write much more than less :redface:
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Plus, you have to learn to decopher Realtor comments. Remodeled equals new carpet and paint. Needs "TLC" means it is a wreck. No comments mean they could not think of anything good to say. :D
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Yes,...Caterina , any report being sent out for a review (of it) should be e-mailed to the review appraiser ! The entire PDF'd file, as originally sent to original client, nothing blacked out, no pages excluded. Then I get to print out at my end just what pages I want to write notes on at that time and the print quality will be maintained to its rightful maximum. I hate getting purchase contracts or another report faxed, because inadvertantly, their fax will reduce legal to letter size, and/or small numbers and letters get smear-compressed into blobs which are indistinguishable ! Lastly, they can overnight mail the whole original document of a report or contract. We get "yelled-at" when we err in the ever-so-slight way......and it is nothing but laziness on part of our client not to assure we get a good, clean version of the important page, report or document we are to scrutinize. Fair is fair. --- Word came back to me last week from a staffer of a client, claiming they were being "screamed at" because I sent in my report with photos in B & W. That would be the very first time I have ever sent a report with B & W photos, nor have I ever heard that someone received my report with B & W photos. I called, suggested they re-open my PDF file, and look at the photo pages.....then print the report in original color. That was not sufficient, so I re-sent same file again, and I phoned immediately thereafter. "Oh yes, they are in color here......gee". ---No, "gee" was not the correct reply......"Duh" would have been more appropriate. ( No, of course there was no sort of apology) Some of these clients' shops operate their day in continual panic from 8 to 5pm. All the more reason for us to establish the ground-rule that they E-MAIL or FAX their comments of concern ! They get by too easily with rapidly-spoken and grossly incomplete phone recorder messages venting the issue that has them twisted-off.
 

Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
Hey Lee Ann,

Well, at least you're giving some comments regarding the neighborhood with most dwellings being remodeled. We have quite a few of those vintage neighborhoods with the major updating and remodeling of most dwellings. Yes, 20 yrs. effective truly could be average for the area. But if that's so, please tell me about the area. I'm not picking on you, Dear. Most times when I've seen this 'average' everything regarding condition, it is also coupled with meaningless canned statements that give no useful data. Then, viola, the subject has signficantly reduced effective age. This can be a design to pump up the cost section and support the inflated value. Taken out of context of the report, yes, it could look innocent.


Maybe I'm just a stickler. My mentor pounded it to my brain that if the effective age is less (especially significantly) than the actual, you better give some specifics as to why. 'past refurbishing and good owner maintenance has reduced the effective age', or 'recent updating of kitchen and bath fixtures, flooring....' Tell them what you saw.

If the report is reasonable, I don't nit pick stuff like this. But it can be an indicator of a pushed value, and if the value is pushed, this example is one of my pieces of 'evidence'.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
7. Effective/Physical age adjustments without any market support, or using only newer home sales without any 'splain'.

8. Extremly cropped photos....... so close up that you can't see any of the yard or surrounding area.

9. Cropped photos at strange angles......... what ya' hidding??

10. Canned statements so limited that they could apply anywhere from New York to California. Please folks, try a little bit harder...... surely you can think of something to say about the neighborhood.
 

DianaOKC

Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Oklahoma
How about the "adjusted sales price of the comparables"? I reviewed one the other day that had the adjusted sales price in a range of $126 - 131 and the appraised value was $139,500! Hopefully this was just a typo but there must have been several people who didn't catch this before it got to me!
 
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