- Joined
- Jan 15, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Texas
I can't believe I haven't covered this in previous posts. I see a recurring theme in field reviews that are questionable. Appraisers will give very limited verification sources and many times only one. For instance, if you obtain closing information from a Title Company (which is against the law in Texas), you usually can only verify the closing date, legal description, type of financing, sales concessions and buyer and seller. Rarely will the Title Company provide you with physical characteristics of the home (age, size, style, construction quality, improvements, lot size, amenties and improvements). So, how can you have only one verification source in this instance? If you do use a Title Company as a verification source, shouldn't you obtain a copy of the closing statement and put it in your report so it can not be questioned? Don't fall into the trap of a developer, builder or sales person giving you information across their desk without printed verification of their data. It will quite often be discredited under review because you did not verify the data. A reviewer will find out that the home is not the same size, or on larger acreage, or closed three months away from your reported date. Do you think the person who provided you this information will come to your aid when you are proven wrong? Then, keep in mind that FNMA states that all sales must be "exposed to the open market" in order to be utilized as a proper comparable sale. Also, we are supposed to be the "unbiased third party" in the transaction and it is easy to spot an appraisal that has forgotten this rule. Any appraiser that uses three sales from 10+ miles away with questionable verification sources can not hide the obvious when there are 30-40 MLS sales that discredit his data from within 5 miles and 5-10 MLS sales within a mile.
Sorry, just did another $50,000 high review for FNMA. It really seem worse when it is $50,000 on a property is really worth $70,000. Especially, since it just sold as an REO property for $49,000 this year. You would think if an appraiser was going to be fraudlent and risk his license they would be more clever and cover their tracks better.
Sorry, just did another $50,000 high review for FNMA. It really seem worse when it is $50,000 on a property is really worth $70,000. Especially, since it just sold as an REO property for $49,000 this year. You would think if an appraiser was going to be fraudlent and risk his license they would be more clever and cover their tracks better.