Just reviewed the worst appraisal I have seen....

[Francois K. Gregoire]

I understand all of that. But don't you find that, at least with respect to the public trust, that our job is perceived as being in the realm of producing results that are accurate.

Sorry to split hairs, but "results that are accurate" are not the goal, at least according the the standards under which we operate. Instead, the goal, and what is needed (at least according the ASB) are "credible results."

Anything with an HC or an EA should not conclude with something called market value. They should be called hypothetical values or extraordinary values, but never should they be permitted to use the term market value.

As you know, the appraiser is already required to "clearly and conspicuously state the extraordinary assumptions and hypothetical conditions and state that their use may affect the assignment results."

Darn it Frank, explaining away these kinds of disparities is port of the problem. I should just be able to blow the whistle as to a significant disparity of some kind, nothing more, and the board investigator takes a look and if it is OK then maybe its OK, but I shouldn't have to spend my time doing this USPAP investigation crap gratis for the board.

Edd, I am not explaining away anything. My purpose is to examine the possible reasons for the disparity in opinions or assignment results.

In another thread an appraiser expressing concern about what he believes to be an unfounded complaint filed against him. No one is asking you (at least I am not) to do an investigation. My suggestion is to file a complaint on the basis of something factual rather than opinion. Remember, facts are provable.

 

[Restrain]

Realistically, a commercial apprasial is going to be much harder to get the state's attention than a 1004 SFR. Most board members, especially in states where there are members of the "public" who are not appraisers. Unless you can prove fraud (sales don't exist, sales prices were deliberately inflated, etc), I would simply do the review as you find it and let the client make the decision what to do. Just dot the i's and cross the t's.

State regulators are much more interested in SFR fraud as it is the biggie in todays non-regulated lending environment. Billions are lost yearly in appraisal fraud for SFRs and it impacts individual borrowers much more than problems with commercial lending.

 

[Dale Smalley]

I might have you beat on the wost appraisal ever. Nice 13 year old home 3000 sq ft GLA on 17,000 st lot. Omitted was a recent listing for 950k now with a contract of 1.4 mil. Appraisal at 1.6 mil using a comp over 8400 sq ft GLA (used 5700) on over 2 acres. next comp over 5000 sq ft on a double lot and the real kicker comp a commericial nursey on over 2 acres with an old 1500 sq ft house now the office over two miles away. The cost approach at 1.1 mil. There were lots of similar comps in the neighborhood he somehow missed.

 

[Mark A Rewbury]

I reviewed one a few weeks ago..out and out fraud...not incompetance just pure fraud. The guys licence number was in the 6,000 grouping.

 

[Michael Tipton]

I reviewed one a few weeks ago..out and out fraud...not incompetance just pure fraud. The guys licence number was in the 6,000 grouping.

I hope you are sending it in to FREAB.