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I'm concerned for borrowers and lenders!

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Jan Roseberry

Thread Starter
Senior Member
Sep 25, 2002
Professional Status
Certified Residential Appraiser
This AVM stuff is getting out of hand! Borrowers and banks are being put in jeopardy. This appraiser just 'wasted' (means no $) a couple hours refuting an AVM. The data they provided was wrong, bank was protected in this case but . . .

Hello Jan, The UW reviewing this loan would like the following:

1. A comment/statement from you regarding housing trend of area, report states Stable however zzz report references long term depreciation.

zzz report includes homes in the East Canton (3) and Canton City School (9)Districts which are lower priced markets. I chose only similar homes in same school district; zzz report only used 2 sales in this district. Market areas are closely related to school districts in Stark County. Louisville statistics are quoted in the report showing a stable market; I quote:

"No unusual seller financing concessions/buy downs were observed. MLS reported 189 (206) residential sales in Louisville SD in 2007 w/ aver price of $147,323 ($136,524), properties selling in 71 (69) days & receiving 96 (97)% of list. 2006 figures to date are in parenthesis to provide comparison."

2. Also please address/correct difference in dollar per square foot, you used higher than zzz report of $44 per square foot.

See above. Plus depreciated dollar per square foot is $44.85.

I truly believe these zzz Reports are not doing anyone a service. Majority of data is pulled from Canton City Schools -- 2007 average price of $33,206 ($43,723 in 2006)--and East Canton Osnaburg School District -- 2007 average price of $114,087 ($98,874 in 2006). In this particular case the lender is not being harmed but what would happen if this home was in Canton City instead?

Before responding to initial e-mail, I requested a copy of the zzz report to see with what I was dealing. It was bad and the lender (maybe the buyer indirectly) paid $35 for the report. Just because something is printed does not make it gospel, remember the old sayings " garbage in, garbage out" and "there are statistics, there are statistics, and there are damn lies."

There are not enough hours or enough reimbursement to handle all of these complaints but if we each did one a week or one a month, maybe someone would catch the drift. These are not protecting the borrower or the lender.

Mike Boyd

Elite Member
Jan 18, 2002
Professional Status
Retired Appraiser
If you completed the analysis they asked you for you should be paid and paid well. They are attempting to close a loan where they will make thousands of dollars using a $35 AVM and your free analysis. Good guys finish last.
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