• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Is this Appraiser's punishment fair?

Status
Not open for further replies.

Larry Lyke

Senior Member
Joined
Feb 2, 2002
From the State of Minnesota Commerce Department disciplinary action website:

Richard Battles, Appraiser
Lic#: AP-20023368
Against: Appraiser
Action: Suspension/Consent
Begin: 1-24-2003 End: 3-24-2003
Signed: 2-12-2003 $3,500 Fine
File # AP-2006699 JEK

Allegation: Failed to exercise reasonable diligence in developing and preparing an appraisal report by grossly understating value by $110,000. Respondent displayed incompetence and gross negligence.

---------

Somehow it appears to me to be lenient. What I don't know is the actual Opinion of Value.

But, at least, there's somebody out there watching us!
 

graindart

Junior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Montana
I think it all depends on the market value of the subject. If we're dealing with a $200k house and he said it was worth $90k, license needs to be taken away. However if we're talking about a 1.5 million dollar home, I think that two different appraisers could possibly vary by $110k, depending on how recent and plentiful the comps are.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
grossly understating value by $110,000

Shucks, they were so surprised that the value was under instead of over, they were lenient.

Must have been an incompetent boob or deliberately appraising it to favor a client, such as divorce situation.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
Ummmm, what if the homeowner thought his
castle was worth $700,000, and Rich found
comps that could only support $590,000.
The homeonwer came unglued cause he
just paid $650,000 three months ago. So
they turned him in with the LO's blessing
to show him he shouldn't triffle with a
homeowners estimated value. Homeowner,
LO, and realtor all said it was worth $700,000,
at least.

The state board could have been just as
wrong and negligent.

elliott
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
state board could have been just as
wrong and negligent
Isn't that scary, but a very real possibility.
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
[ENTER Larry at stage left]

This is not in defense of our State Board. "Of course, in a way it is."

[CROUCHING at center stage]

Complaints are reviewed by independent outsiders hired by the State before an allegation and hearing is filed.

[LAUGHING heard coming from backstage]

One of them is an MAI and the other is an SRA. [STOP laughing]

[SUMMATION]

So, as tantalizing as it is to guess what might have been wrong with subject appraisal, I would venture to guess it was more substantial than an aggrieved refinancing Homeowner.

[EXIT stage right]; [END]
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Got regaled with a tale of two appraisers today. Seems a Realtor was so anxious to get the appraisal done, he called an appraiser and asked him to do it. Meanwhile the bank called a different appraiser to do it. Neither knew the other had been to the property, and the home owner did not say anything to either about having 2 appraisers :huh: . Guess he thought that was just the way it was. Apparently this major regional bank had taken the Realtor's choice of appraiser previously and had a number of his appraisals in file.

Seems one appraisal came in about $2.5 Million, the other $2.1 Million :blink: .....and there were several comparables to this (Farm) property in the $1,000,000 to $1.8 million range but none over that have closed in years. The farm was, simply put, much larger than the largest comp, but nevertheless the building contributions were fairly easy to divine from the market data.

The discomfort :( the high appraiser felt over the appraisal apparently spilled over into a rude :angry: exchange between the lender and that appraiser, and the bankers are now threatening to review a number of appraisals that he did previously. :( Needless to say, the appraiser who was high was the one working for the Realtor <_< ........
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks