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I can't be the only one getting trumped by my competition?

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Tim Hicks (Texas)

Thread Starter
Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Tom and others,

I recognize your plight, but I really don't see appraisers being abused by our state board. Here in Texas, our State Board just reprimanded 26 appraisers in the last year. That does not seem to slow down the aggressive behavior of my competition. I can count at least twice a month this year that my appraisal was trashed and another appraisal was ordered that made the numbers work. Surprisingly, I have only lost two clients over it, but I wonder why the others continue to use me when they take the risk of me killing their deals. Just last week, I appraised a home for sale by owner with local real estate agent working as a selling agent. I was everybody's best friend until I proved that the property was over listed and sold by $30,000 with sales all within 90 days, all right on top of the subject and all within 100 SF of the subject. First, the loan officer faxed the appraisal to the agent. Then the agent faxed the report to the home owner. Then phone calls started. The owner says I am an idiot because his house is 3,351 SF not 3,332 SF. I explain that I took the stairwell out upstairs because it cut into one bedroom by three feet and that was about 30 feet of unwalkable space. Well, obviously I am an incompetent appraiser and I should be using conventional guidelines since this is a conventional loan. Then, he explains that even the agent thinks his house is worth the sale price. Well, no kidding. Then he wants to know why I didn't use the sale down the street that sold for $125,000 more than his. I explain to him that I am not supposed to discuss the appraisal with him, but that the home down the street is 900 SF bigger, on four more acres, has a pool/spa and a 1,800 SF workshop. I, then, explain that all five of my sales are the same size, age and nearly the same lot size as his. Well, I am just an idiot. Folks, I live in this town, my home is built by the same builder, I know the property values. The buyer then calls me. I explain that he needs to obtain a copy of my appraisal and he will understand. I explain how I select my comparable sales. His closing comments were that he was not going to pay more than the house is worth. Then, the agent and home owner decide to get another appraisal. Surprise, surprise. The next appraiser appraises the property for $30,000 over the sales price and $60,000 over mine. Only one sale within a mile (the nice high one the owner mentioned) and only one within six months. Now, the agent is bad mouthing me all over town, the home owner (a local accountant) is bad mouthing me all over town and I am sure the buyer is in complete agreement. If you took the two appraisals (they will not give me a copy of the second) and compared them there would be no question which one is right, but nobody will ever see mine.

Isn't this the scenario in every other area, too? The correct appraiser is always the idiot and the shady appraiser just knows correct property values.
 

J in Florida

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Florida
T-

"I'm looking for optimistic appraiser who is looking to make deals, not kill deals"

Yes, they are in every town of this great land. I feel your pain brother, been there, done that but amazingly I still have more work than I can handle, no matter how badly I suck as an appraiser :lol:
 

Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
Tim,

A couple weeks back I got called on the carpet on a pre-foreclosure in a really rural area. Asset management company calls and says I need to correct my address and my value. 'Scuse me, ma'am??' 'Well the other appraiser says the house number is 139, and his value is $22,000 higher. What is wrong with your appraisal?' There are a grand total of 4 sales in this entire manufactured home paradise located 30 minutes from the nearest anything and all 4 are REO's. All of them at least $15K lower than the other appraisal. 'Being that this is a non-disclosure state,' I say, 'I may not have access to other private sales which don't become public record. If there are additional sales I need to look at, by all means I will consider them." She faxes the appraisal over. Guy got the county wrong, used the lot number as the street address (most homes and streets aren't marked, you have to verify with rural addressing at the county), used sales comparables 3-4 years old located 146 miles, 37 miles and ?? miles away and grossly misunderstated the proximity. Made many other 'errors'. The entire report was irrelavant to the subject property. He wasn't even trying to make a deal work, this was an REO for cripes sake. All my comps are recent, and located within the subject immediate nieghborhood. The county verifies my address is proper. Shoot, the other appraiser wouldn't have even been calling the right county! But I'm the dummy cuz my value is lower. :roll:
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Some days I'm so very, very tired of this. :( I had one today, too. The only good part of it was that the buyer called me and said "Thank you". That was a first and well after the LO and his manager verbally abused me and told me to find other comps that would work. The best part was "Why on earth would you finish the appraisal once you knew it wouldn't make the sale price?" and... "I know all about appraisal laws." Made it sound like I'm the only appraiser he's ever used that didn't make the value for him??????? They did seem genuinely surprised that I didn't just call them to tell them I couldn't make it so they could call someone else. FHA no less!!!!!

Another lender OFF my approved lender list!!!!! :twisted:
 

Lee in L.A.

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Guy got the county wrong, used the lot number as the street address (most homes and streets aren't marked, you have to verify with rural addressing at the county), used sales comparables 3-4 years old located 146 miles, 37 miles and ?? miles away and grossly misunderstated the proximity. Made many other 'errors'.
Let me put it nicely. This is the work of an incompetent moron. :!:

I have one now, has 6 comps. Four are not actual sales. they were foreclosures and now bank owned or HUD owned. One has a sale price of $253,000 in the appraisal, but my data shows $90,000. One appears to be a valid sale. :x

All I can think to do it to recommend lender/client reject appraisal and get one from somebody else that complies with USPAP and other applicable regulations. :evil:
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Tim, oh how well I know the insanity of how we can be accosted after we submit our due diligence. I had several of these sorts of scenarios in March, just prior to a 2-wk trip to Scandinavia in early April --- with lots of time to think while away --- and, well, my fax has been quite silent since my return. Bottom line....too much reliance on a few select clients, who had kept me quite busy for half a year, and no regular marketing for new clients. In your situation, however, one thing confuses me. You say ...."then the buyer calls me"...and something to the effect that "they did not want to pay more than it was worth". Wouldn't your value have satisfied them ? So, they must have said to their buyers' agent something like "but, we really want this house"......and then willingly agreed to pay $60K more (?) than your value as the other bogus appraisal was concocted. Why wouldn't they have said "no" to purchase, as was their option, yes ?, and gone looking for another house. Isn't that what gets the seller to come back with a reduced price to keep that prospect interested, if they really do want to sell ? The buyers should have been thanking you, perhaps. Did they ever do that ? I really do not have much experience with getting thanked for what I have done in last 4 years. This truly is a thankless carrer choice, and with yours and numerous other posters here, one sees that very few ever appreciate what we have concluded. Yes, this industry is presently in a wild mix of transformation and evolution. The other side appears very spooky.
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Ross,
For what it's worth...business seems to be way down for just about every appraiser I know in the Denver area this month (I checked :oops: ), so it's not just you.
The annual spring boom of buyers in the high country didn't take off like it usually does this month, and this [email protected]#$%^& wildfire isn't going to help matters a bit. Right now I've got two houses that I appraised this past week that are under purchase contracts, in addition to two pending refi's, and all of the homes are currently evacuated. Cripes...one of the lenders is evacuated! Sure hope my invoices don't burn up. :roll:

Dee Dee
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
DEE DEE and Ross,
Feb. and march were slow for me and like you ross I had two very good clients I relied on that did not put the pressure on to make value. Of course these clients are banks and not brokers so they have something to lose if I dont do what it is us appraisers are supposed to do, Market Value not sales price!! I digress. Well, feeling desperate I picked up the phone and got some fee split work out of first american, what a mistake most orders turned into comp searches and the few deals that actually turned into appraisals were more trouble than they were worth. Out of the blue I get a call from a company that handles some big clients. apparently i applied for approval on lin a year ago. Full fee work and after my first appraisal was turned in 3 days " could I handle 2 or more a day?!!!" oh yeah and on tuesday "If you could get this one to us by friday we can get you an extra $50". So pick up the phone and ask for work. Call your good clients daily. I heard that these guys at www.nascopgh.com pay full fees and you can apply on line as I did last week. No work yet but maybe next time it gets slow they will call out of the blue with some work, you never know.
Chin up.
 
B

Bemis Pownall

Guest
I had the same exact senerio happen to me couple months ago. Lost a friend, LO whom I helped get the job. FSBO 20% over market, my appraisal missed, pusher hit. one sale was 100% larger above grade.

They really wanted the house, they were approved with AVM wanted a full appraisal since the same model had sold recently for 25% less. and they were concerened. oh well, let them pay too much..

Still havent been paid..

Now I have a new listing in that neighborhood, 10% larger, 1 block away $50,000, or 25% less then they paid, should I mail this listing to the New homeowner? hee hee

Even though it seems slow, everyone remember, it was May last year when all heck broke loose and rates are lower now then they were last year!
You never know! :wink:
 
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