Just learned VA Appraiser never came to house!

[rcsone]

....appraisal quality per your last post will possibly be an additional, smaller issue to both the state and VA..........as a review appraiser, it is difficult to pass much much effective judgement on miscellaneous contectual parts isolated from a report.....as you appear to have researched some of the established data or facts in the report, this misinformation can be easily verified......REPORT IT from a preparation and trustworthy perspective.....and as a responsible citizen.............best to almost all............rs

 

[heathpack]

....appraisal quality per your last post will possibly be an additional, smaller issue to both the state and VA..........as a review appraiser, it is difficult to pass much much effective judgement on miscellaneous contectual parts isolated from a report.....as you appear to have researched some of the established data or facts in the report, this misinformation can be easily verified......REPORT IT from a preparation and trustworthy perspective.....and as a responsible citizen.............best to almost all............rs

Yes, I hear what you're saying about do the right thing. And from my previous posts you can probably tell that the right thing is very likely to be done.

The real thrust of my question about the magnitude of the errors is more for our own understanding-- so that we know what to think if the appraised value increases substantially.

H

 

[rcsone]

....error in errors of magnitude whose accummulated total equals what? In appraising there are sorta two parts data and analysis. I have found that horrible preparation with negligent thought can end with a confirming market value justified by a later examination. But by definition, appraisal is a process which includes certain available efforts and informations whose accomplishment satisfies the requirements necessary to meet the definition. A person might be able to blink twice and arrive at a accurate market value, but they would have violated the aspect of process in the appraisal. Again they might assume factors, such as : zoning, size, utility, condition, etc. and still get a result of a supportable figure of market value. But they would have disregarded their obligation to secure adequate data in fufilling their responsibility. In short, you can do it wrong and something turn out alright.
Appraisers travel between fact and judgement. The appraisal process requires the
sufficent aggregration of the first to eliminate as much as possible of the later. Your appraiser's misses in the facts you have named may be offset value-wise in other parts of the analysis resulting in no net effect on the resulting value dollar figure. But you know that some of the facts are wrong. That is why you have to view the appraisal in total. And I would caution the effect of any square footage figures verified through local assessors whose accuracy varies. A further example, a 5% error in condition which tends more toward judgement could be offset by a square footage fact. This directly relates to my earlier statement that the facts and the individual effects can offset each other with a net of nothing to the figures. But the industry's requirement for proper and sufficent facts to be verified and gathered would support the general public's(your...) confidence in the effects of the total report. If for no other reason than that you know the signer did not initially inspect the property and signed that he did, this fact destroys the following trust you were entitled to receive from the appraiser and his report. The ink of the report carries little weight . . . . . . . . . . best to all.............rs

 

[heathpack]

....error in errors of magnitude whose accummulated total equals what? In appraising there are sorta two parts data and analysis. I have found that horrible preparation with negligent thought can end with a confirming market value justified by a later examination. But by definition, appraisal is a process which includes certain available efforts and informations whose accomplishment satisfies the requirements necessary to meet the definition. A person might be able to blink twice and arrive at a accurate market value, but they would have violated the aspect of process in the appraisal. Again they might assume factors, such as : zoning, size, utility, condition, etc. and still get a result of a supportable figure of market value. But they would have disregarded their obligation to secure adequate data in fufilling their responsibility. In short, you can do it wrong and something turn out alright.
Appraisers travel between fact and judgement. The appraisal process requires the
sufficent aggregration of the first to eliminate as much as possible of the later. Your appraiser's misses in the facts you have named may be offset value-wise in other parts of the analysis resulting in no net effect on the resulting value dollar figure. But you know that some of the facts are wrong. That is why you have to view the appraisal in total. And I would caution the effect of any square footage figures verified through local assessors whose accuracy varies. A further example, a 5% error in condition which tends more toward judgement could be offset by a square footage fact. This directly relates to my earlier statement that the facts and the individual effects can offset each other with a net of nothing to the figures. But the industry's requirement for proper and sufficent facts to be verified and gathered would support the general public's(your...) confidence in the effects of the total report. If for no other reason than that you know the signer did not initially inspect the property and signed that he did, this fact destroys the following trust you were entitled to receive from the appraiser and his report. The ink of the report carries little weight . . . . . . . . . . best to all.............rs

I think I understand what you are saying now. I keep focusing on the value, but really the appraisal is the entirety of the thought process which should be reflected in the report and ultimately in the value conclusion. Mistakes reflect mostly on the quality of the thinking and research behind the appraisal but not necessarily the conclusion. Yes?

It seems to me that missing two of the three transfers in the past 36 months indicates that an important aspect of this house's history is not reflected in the report: this was a very distressed property when it was purchased last Feb. Current seller bought I think at auction for a very low price. Did a great job rehabbing. Then our market turned on a dime in early April and suddenly there's tons of buyers out there and he gets a great price. Mr. Z I speculate was just trying to come up with a value that lay somewhere between the most recent sale and the current one. I think he might have already decided about what this number would be before he even started the appraisal process. Maybe that is why the comps make no sense to us.

Well, we'll see how it goes today.

H

 

[Ken B]

I think I understand what you are saying.
H

Well, that makes you a couple steps ahead of most of us.

Just playing with RC.

 

[rcsone]

HP......."yes"..............yes. It would be possible to get your facts wrong and your market value right within an acceptable range. It follows that you could get your facts right and your value could be extremely wrong. The combination of data and its proper analysis results through the appraisal process in a valid market value which should and could be recognized and understood by you and most of the reviewing public. It is apparent that the depth of understanding will vary among individuals according to their backgrounds and such. Questions will arrise, but a properly documented appraisal performed by established rules will answer most of them or it could be deficit in preparation or contents or explainations. Your comments on "what he is trying to do..." is hopefully of error and, if true, is not part of the appraisal process. Finally legitimate, conforming, quality appraisals can be duplicated by others who can do the work correctly to about the same conclusion of market value. But it is not possible to examine and follow the "gingerbread" trails of some appraisers to a logical, documented conclusion........best to all..........rs

 

[rcsone]

.....also selecting comps to rationalize a sales price is improper.....and backwards..rs

 

[heathpack]

Mr. Z's visit to house was.

...actually a normal-seeming thorough inspection, according to realtor. Mr. Z seemed very diligent about performing all the normal appraiser tasks. Seemed neither to be quaking in his boots nor cavalier about the matter. Was pleasant about and receptive to realtor comps.

We wished realtor could have asked him what the heck he was thinking. But he just opened the door and gave him some comps.

Mr. Z will get the revised report turned in by the end of the day tomorrow. I'll let you all know how sensible it seems.

H

 

[TEL2002]

How did it go with Mr Z today? Hope you asked to see his ID & state appraiser license.

 

[rcsone]

......VA processing procedure is the finished appraisal is loaded to the VA Regional Portal and then it is accessed by "the intended user", ie: the lender who orginated the request to and through VA. This "turned in by the end of the day tomorrow" stuff would show a conflicting report differing from the original, uninspected one previously filed with VA. So from your sequence of related events, I question the entire process and the participants from the realtor, the loan officer, and including the first and second appraisers. If you will PM me I will give our Regional's contact number and they can refer you to the proper person of and in your area. At the top of the completed appraisal there should be a Case Number which begins with "LAPP followed by in this area ##-##-#-#######. This will establish the identity for your possible needed conversation with the VA folks. In addition I would suggest futher considerations of your liability to VA, if this turns out to be a questionable transaction committed with your prior knowledge. Since "it's a good deal" might satisfy only your motive, it leaves me to ponder VA's reationship with you when they provide means.....?........best to you and all............rs