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Is anyone still doing reviews?

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Pat Butler

Thread Starter
Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
I used to do a lot of review work until SR3 was revised. When the client wants me to concur with the value in the original appraisal, I've now developed my own appraisal. Nothing wrong with that except that clients won't pay for the work required to basically do a review PLUS an appraisal.

Sure, you can incorporate parts of the original appraisal by reference. But it usually isn't that simple. I'll incorporate the parts that are correct, but then provide new data to replace the incorrect data in the original appraisal. An assumption is then needed when incorporating parts of the original appraisal that cannot be verified- such as the interior data. Then, there's the scope of work issue. The client may not care that certain items aren't verified- such as some of the interior data. So some items need to be assumed and other items basically ignored if they don't fit into the scope of work.

What you end up with is a review and appraisal that gets complex and confusing quite quickly. It's easy when the original apprasiser only makes a few mistakes, or perhaps another comp needs to be chosen. But for really bad appraisals, the review with new appraisal gets to be really confusing and a logical reporting nightmare when having to have the user jump back and forth between the old appraisal, the review, the new data, and the addendum that shows how the two are glued together, what can be ingored (scope), and what is assumed!

Anyone find an easier way to do this?

Next, we'll talk about updating an old appraisal.....
 

Farm Gal

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

I try mightily to avoid reviews, but will take them on on occasion. Now is NOT an occasion when I welcome that work. I have literally divided the process into 4 steps: My methodology might help you, or you may think I am nuts!

I copy the report to be reviewed, Data verification is the first step: I black check any data found to be accurate, redline (literally) anything found to be inaccurate or supect, with a code to source County Tax assessor, MLS listing, Agent This results in a very marked up page that visually assists me in assessing what I am looking at.

I then generate the review, with the exception of the value. Yes this means comp searches, but I am NOT at that point attempting to appriase the subject, just see if there were better comps.

A seperate 'put the review away and do an appraisal' assignment then happens. I generate a scope which includes my sources of data for the appraisal, which may or may NOT include much from the reviewed report. The black/red page(s) really help me decide what my preferred data sources are going to be! Who cares what the value winds up being: my value is based on my scope and there you go!

Finally and ONLY after generating my opinion of value do I reconcile the difference between my appraisal and the reviewed report....

Have you looked at the new Fannie 2000 form? It HAS changed a few things... I think it still needs work :roll:

Regards,
Lee Ann
 
Joined
Jan 16, 2002
I avoid them like the plague for the exact reasons you mentioned.
The only reviews I do are for my full time regular customers who have been with me for years.
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Back to the scope of the review ..

Have done them based on ONLY "the following items were verified to be a true or correct recital of the noted sources."

Have had instructions whereby the lender required that "the reviewer shall re-state the value found in the original report." My entry in the review: "The original appraisal provided a value of $XX,zzz." This is only a remark .. does not indicate that I agree or disagree, but is merely a statement. Will not be trapped into providing my opinion of value unless the appropriate fee has already been deposited to my account!
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Airphoto:
Standard 3 pages 32-36, 2002 USPAP; check lines 1145 to 1154 regarding the reviewer's opinion of value. If in the scope of work the client requests an opinion of value, then the reviewed has to state whether they concur or do not concur with the opinion of value. So if you will not do that, you will need to tell the client when receiving the order that you will be only reviewing the report itself--and not expressing an opinion of value. They might cancel the order in that situation. Which would be your choice if you don't want to express an opinion of value.

Which reminds me of my pet peeve--orders for an "enhanced" review, with additional comparables demanded by the client with a different fee than a review without comparables. If in my opinion different comparables are necessary for the review I provide them, if different comparables would not have any bearing on the appraisal problem, I will not provide additional comparables; my fee for the review will be the same. File clerks ordering a review can't understand that.
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Joann ..

Agree with all you say .. now, let's parse some words: Above quote "If in the scope of work the client requests an opinion of value, " as compared with my remark: "appraiser shall re-state the value .." Not the same thing! I give them exactly what they ax'd for, which is different from the AO statement .. and satisfies their request ..

As Rush so often says .. "words have meaning."
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
I just completed a field review and usually get 1 a week. For whatever reason I don't know. I hate doing them and charge the same amount as a full appraisal regardless if they need addtional comps or not. My method is somewhat like Pamela's in that I will make a copy of the report and red ink or highlight everything I do not agree with. Then type up the review of the report staying away from comments about methods or the appraisers lineage. After that is done then I look at other comps in the area and reconcile all the information at the end.

Ryan
 

Dale Smalley

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I had talked a client into 2055's instead of a desk review to over come the biggest objection of unknown condition adjustments. But what happened is that they now had two different values on the same property. And that only confused the situation even more. You know what happens when two appraisers can't agree. They went to AVM's. That didn't help now they hav an appraised value and multiple pages of usless avm data they can't read. So we are back to desk reviews that include tha appraisal and avm. I tried the I agree or disagree statments but that only pissed them off. The want a single number at the bottom of the page.
 
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