I live in Arizona, but just completed a review of an SRA's appraisal in Florida

[Joyce Potts]

Oh stop with the designation envy comments already.

 

[Ariba]

Question: What is the difference between an appraisal review completed by someone in India/Bangladesh and an Arizona appraiser doing a review of a Florida appraisal?

Nothing, both have no clue as to the local market, have no access to MLS data, not familiar with neighborhood, grid adjustments, etc. Both lack knowledge and expertise to comply with the competency rule.

 

[Mr Rex]

Question: What is the difference between an appraisal review completed by someone in India/Bangladesh and an Arizona appraiser doing a review of a Florida appraisal?

Nothing, both have no clue as to the local market, have no access to MLS data, not familiar with neighborhood, grid adjustments, etc. Both lack knowledge and expertise to comply with the competency rule.

The real difference is that the US based appraiser is likely bound by USPAP. Sandjeeb and his kin are free of bondage to such arbitrary and capricious restraint of trade.

 

[Caterina Platt]

The real difference is that the US based appraiser is likely bound by USPAP. Sandjeeb and his kin are free of bondage to such arbitrary and capricious restraint of trade.

 

[Michigan CG]

Wisdom is knowing what you do not know. (I think.)

 

[The Sheriff]

Some of your comments are so far off based from the initial post I left on here... This wasn't a review ordered by an AMC, a lender, etc. A good friend from college asked me to look at his report with no opinion of value rendered because he realizes I'm intelligent enough to filter through BS (if that was the case). There is a difference between conducting a qualitative and a quantative review. Unfortunately, the majority of you on here are so hung up on the "geographical competency" issue, you fail to realize I wasn't looking for a number per se, I was reviewing the body of work in general. Any licensed or certified appraiser should be able to review a report and have an opinion of the quality of the product in front of them. Maybe the myopic views of the posters on here summarize why I our industry lacks credibility in general. I would expect someone in Michigan to be able to look at a report in Arizona and realize if the quality is up to par without rendering an opinion of value. A URAR is laid out so a monkey can understand it if an appraiser proceeds in a methodical order. However, when an appraiser is making across the grid adjustments without any narrative to substantiate the superior adjustments of the sales, red flags should be going up across the board. That was just one of many mistakes. Maybe I should just pay someone in Florida to conduct a quantative review. I'd love to see a "geographically competent" opinion of the body work. Or maybe someone in Florida already looked at the report as a professional courtesy and confirmed my suspicions. Either way... the opinions of many you made me realize this industry waited way too long to make degrees mandatory. Nepotism and the lack of education in general is the main reason why fees are depressed. If the vets on here weren't so hard pressed to make a buck, maybe they would realize how they each contributed to the watering down of the industry. Thanks for ruining it for those who are attempting to make a difference. The sooner some of you that retire, the better chance our industry will actually develop into a profession with respect. End of rant... now you can go back and talk about peer reviews and lack of geographic competency.

 

[The Sheriff]

Information from the original report.

The first two pages of the report are attached... Also, here's the 1004 MC info below (I typed it verbatim so not to include the appraiser's name from the bottom of the form if I were to include an attachment).

Inventory Analysis: Prior 7-12 mo. Prior 4-6 mo. Current 3 mo. Trend
Total # of Co Sales 44 20 34 Inc.
Absorption Rate 7.33 6.67 11.33 Inc.
Total # of Co Active 176 119 106 Dec
Mo. of Hous Supply 24.0 17.8 9.4 Dec


Med Comp Sale Price $278,493 $263,500 $281,200 Dec
Med Comp Sale DOM 20 100 40 Inc
Med Comp List Price $278,045 $284,990 $286,995 Inc
Med Comp List DOM 114 114 79 Dec
Med Sale to List Price 95% 98% 97% Stab

Seller paid financial assistance prevalent - No - Stable
- Appraiser found no data to support any change in seller concessions in the last 12 mo.

Are foreclosure sales (REO sales) a factor in the market - Yes
- The impact of REO Sales is reflected in the median sales prices in the the subject area.

Cite data sources for above information.
- MLS, Review of sales contracts.

Summarize the above information as support for your conclusions, yadda, yadda, yadda,.....
- The above data indicates an increase in the number of sales, an increase in the absorption rate, a decrease in sales prices and a decrease in the days on market in the last year.

 

[Ken B]

This just keeps getting better...

 

[Michael Tipton]

In all fairness, I'm in Central Florida and had concerns over an appraisal done for a family member down in Lee County or SE Florida, and hired an appraiser for a full review right off this Forum, because I knew-- that I did not know, what I did not know about the SE Florida market.

There you go again Joyce, Lee County is in SW Florida. (I know it was a typo on your part).

Sheriff, I agree with Joyce on this issue. We can all have a "gut feeling" on any appraisal report. The question is at what point is a local appraiser with access to local market data called in?

If it was my friend, I would suggest having the report reviewed. However, feel free to file a complaint with the FREAB should you feel a review by a local expert is not necessary. I have attached the link to the FREAB's complaint web page for your convenience.

http://www.myfloridalicense.com/dbpr/re/complaint.html

BTW-Don't forget your USF cryin' towel for your return to Arizona after the Gators beat your Bulls.

 

[The Sheriff]

I heard the same thing from some Seminole fans prior to our trip to Tally last season. Might say it was a nice flight back to Arizona for me. If we beat UF in Gainesville, I already told my friends I wouldn't care if my plane crashed. Life would be complete for me (I played wide receiver briefly at USF prior to having surgery after my first year on the field - I was living the dream for someone who spent six years on a submarine prior to going back to school).

Anyways... back to the report. I owned up to making generalizations in an earlier post based upon my original post (forum members on here went over the deep end about the design adjustment that I stated is warranted). I do believe there is validity in my original post though based on what is gridded out in the report (page 2 of the pdf).

Did I get bent out of shape by some of the comments... of course. I think anyone that truly cares about the industry would get bent out of shape as well.