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I'm Thinking....no More Field Reviews

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Ghost Rider

Senior Member
Joined
Apr 27, 2003
Professional Status
Banking/Mortgage Industry
State
Connecticut
Did a review of a really crappy appraisal - property was a sale, listed for $180,000....under contract for $190,000. Much of the comparable information didn't match what was recorded with the assessors office OR the MLS - comps from a totally different part of town, homes that were 7 years old (subject is 40 years old) adjusted for being in INFERIOR condition, just a LOT of red flags, so I pretty well beat it up, couldn't even support the listing price from the sales I was seeing, and gave a gange of values of 160-170K and 5 new comps which were more similar......

Motgage compay and realtors start to freak, no one is getting their commission, I pretty much shrug my shoulders and tell the realtors I can't discuss it with them, and the LO that I am merely doing my job, and it's up to the underwriter if they want to lend on the property of not. I get a call from the Customer Care Supervisor for the company they are using to fund the loan, he understands my position, and isn't comfortable lending on the other appraisal, even if my field review had supported it totally, but asks me what I would charge to go and do an interior inspection of the property, and see if I can't see something that I hadn't seen before - the original appraiser states that there was a lot of updating, and landscaping :huh: So I tell him, sure the fee is $350, same as a full appraisal.....I get the whole "why so much.....you've already done the research, etc...." and I say it is what it is, if you want me to go back there, and do a FULL appraisal on it, I will, otherwise, sorry, can't help you.....They send me an order for it, and a check BEFORE I go out (cool, I'm lucky there) and I have to meet the most asinine realtor I have ever met, who proceeds to tell me how "fancy the house is" and how "he's really in a bind on this one".....again, I shrug my shoulders, and do my inspection. He give me a rebuttal from the original appraiser - which he describes as "my appraiser" :blink:

The subject improvement has been substancially updated with an architectural roof, new vinyl siiding, thermal windows, a new family room addition at the kitchen, and extensice eterior privacy landsaping, with an on site pond view. A new two story wood framed 5 car garage provides substancial storage, loft, and workshop space an includes electric power. These upgrades monderinizations, and improvements were financed by equity. Ownership can be reasonibly anticipate ful enjoyment (reduced maintenance/replacement costs) in the rem of ownership of newly replaces long lived components

The maket exposure of the subject involving multiple offers is indicative of the market response to a property in good condition, wherein accrued depreciation has been effectively negated. for a lender to assert that the equity investment of the present specific owners is not consequental to market value is no only arbitrary, inequitable, and probably contreary to the intent of Fair Lending, but also impedes return of incestment of equity funds, commonly recognized as a fair mechanism for rewarding prudent investment decisions in real estate. This shows a disregard of the facts that has resulted either in an equity penalty wherein the lender and its agents have either ignored the facts or hhave determined equity incestment is inconsequential. Based on the facts, it would appear that the position of the lender is not tenable.

First thing I think when I read this......Where is the support for the appraisal? Cost does not equal value......and has this appraiser ever heard the true definition of "market value"?? The "extensive privacy landscaping" is located in the rear of the property, and while very nice, is a vast over improvement. The 5 car garage is just a large barn where you could probably fit 5 cars, but it would not be functional as a 5 car garage, as there is one door, which is in the middle of the front of the barn, whereas the barn extends deep into the rear of the lot.

I might change my opinion slightly, and bring it to the high end of the rage I gave in the beginning on the field review, but I can't find ANYTHING to support the listing price, let alone the sales price.
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
"return of incestment?" Tell me it's just a typo.......Is that an actual quote from the appraisal? :rofl: Seriously, you are being strong-armed here by the lending institution and the Realtor. (so what's new?) This type of pressure applied to appraisers should be illegal....
 

Ghost Rider

Senior Member
Joined
Apr 27, 2003
Professional Status
Banking/Mortgage Industry
State
Connecticut
Ok, so it's a typo, of you can pretend I'm doing my Trotta impression :huh:

Was supposed to be "return on investment".....I think it's amusing that the original appraiser couldn't defend his position, so he attacked Fair Lending to scare the lender into closing on his appraisal. At least, thats how I read the letter he sent in
 

David Mullen

Junior Member
Joined
Jan 17, 2002
This sounds like a good example of an appraisal that needs a second (or third) opinion from the state.

If we don't clean up our business, the governement will try with more rules and regulations.
 

Judy Whitehead (Florida)

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I think you will find that many of the appraisers on this forum charge the same thing for a review that they do for a full appraisal. After all, they are trying to get you to do the same thing.....give an estimate of market value.

Be reeeeally careful doing 2055's - either drive-by or interior. Sometimes those are used as a substitute for a review....ask a lot of questions....especially of the owner (or "try" and fool the real estate agent!).
 

Mike Simpson

Senior Member
Joined
Jan 30, 2002
I haven't done reviews in a couple years now. $600 worth of work for $150--NO THANKS!!!

I turned away 4 jobs thus far today, and can afford to pass on those who don't want to pay a fair rate.

-Mike
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Just did my first review using the "new" (to me) Fannie form that went into effect last December. I like the form. I did it for free. My contribution to keep the state board's investigators gainfully employed. Hope it works.

For payin' customers, I'm thinkin' the fee's about to go up...............
 

Verne Hebert

Senior Member
Joined
Feb 25, 2002
Professional Status
Certified General Appraiser
State
Montana
Hey! you figured it out! Quit doing them and don't look back.

I agree with Judy. "I'd be happy to perform a second opinion of value for you"..............and here is my fee.

Good Luck.
 

Rich Hahn

Senior Member
Joined
May 2, 2003
Professional Status
General Public
State
Colorado
We have a similar deal
Listed in April $505
Owner is Realtor
Apprasied 6/03 $550
Paid $480 4/01
Home next door sold 4/03 $390 (2 story we are Ranch) so what.
Sales #2-5 are 2 stories and listed as Ranch style in Report?Bug eye...
Sale #2 on 1 acre subject on 8,000sf no adj?
Sale #2 has 5 car garage we have 3, upward adjustment???what the...bug eye again!?
No mention of previous listing
No mention of sale within 3 years?(report written 6/03)

Cutting value $50,000 (deed shows $500 in debt)
Recent listing must be the high bar of value. Subject was listed for $505 and didnt sell.
Not alot of wiggle room is there?

#12 we recommend lender to send report to state,,,we are..

Skip my post if its boring and redundent
Thanks
just another day at the office, hope yours arent as stressfull.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
I get the whole "why so much.....you've already done the research, etc...."

My stock answer:

You ASK why I wouldn't cut my fee in a case like this?
Goodness me {unvoiced: you idiot}

In this situation I have pre-knowlege of additional grief, as opposed to an appraisal in which I had no knowlege that the borrower or realtors involved would be hostile to a real valuation.

You are paying me for my expertise to develop a realistic value for a property, you fear you were given an unrealistic value! When I am done with the second report you may desire further communication reconciling my review and my 'looked at it' value.... and even if you don't the realtor is undoubtedly going to give me grief. I AM cutting you a discount under what I would prefer to charge in this case.

Th-whack ~~~ thud. Balls in your court dude/dudette UW.
 
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