More work?

[Oregon Doug]

Dear Oregon Appraiser,

You folks sure are missing out on an incredible amount of appraisal work.

I served on the Board of Property Tax Appeal this year. We heard 1,371 appeals in my county alone, more in other counties. There wasn’t a single appraisal among them! (There were a few outdated lending appraisals.)

There were lots & lots of CMA’s done by Realtors, lots of people had no evidence at all – most of ‘em lost.

Back in the days when I was an appraiser, I did a number of appraisals for tax appeal and recall being surprised that I won every time (100% success rate) – I had happy clients. But I was doing full tilt reports… I didn’t need to! All it takes is the Sales Comparison Analysis grid on page 2 as of Jan 1st of that year – GEEZE, how hard can that be? It’s a limited appraisal. You don’t need those extra 30 pages or so.

The work is out there – all you have to do is go get it.

Happy appraising,

Oregon Doug

 

[Laurie E]

Amen Doug!

 

[OSU Beavers]

Since a reduction of Market Value will not lower the taxes on a property unless it drops below the Tax Assessed Value, it is not worth the appraisal fee for many owners.

 

[Oregon Doug]

Since a reduction of Market Value will not lower the taxes on a property unless it drops below the Tax Assessed Value, it is not worth the appraisal fee for many owners.

True for some... not for all. Since the property owner is gonna appeal it anyway, why don't you do the appraisal? It's an opportunity for you - win, lose or draw.

OD

 

[Bob Ipock]

The "limited appraisal" went the way of the buggy whip several years ago.


An appraiser can never "win" in a tax appeal. The appraiser must always be unbiased. Accepting an assignment with a pre-determined direction in value will land you in some very hot water. Our county board of equalization has filed a few complaints with the state appraisal board.


Tax appeals are dangerous business for appraisers who don't know the rules of the game.

 

[TC]

With all due respect, I did a ton of that work back when my county did a reassessment. That only happens every 5-6 years, it's not steady work. And I too was 100% winning all the appeals. If a homeowner shows up with an appraisal, they win.

 

[Bob Ipock]

The complaint in the case below was filed by the Gaston County Tax Office

The property owner appealed his tax value.....and offered up TWO appraisals. One of them was mine (done for the purchase). Mine was something around $220,00. The county filed a complaint with the NCAB due to all the errors in the other report. I dd not even know until the investigator called me to verify some information.


Micheal XXXXXXXXX995 (Waxhaw)

By consent, the Board suspended Mr. xxxxx residential certification for a
period of twelve months. The first month of the suspension is active and
the remainder is stayed until June 1, 2009. If Mr. xxxx completes a course
in the sale comparison approach and a course in scope of work by that
date, the remainder of the suspension will be inactive. Mr. xxxx
appraised a property located in Gastonia, North Carolina in October 2006,
finding a value of $256,000. The subject property is a newly constructed
two story home with approximately 2,383 square feet of gross living area.
It is located in a new residential subdivision and was under contract for
$255,900 on the effective date of the report. Two of the comparable sales
were superior to the subject, and inadequate adjustments were made for
the differences. Although there were limited sales available, there were
other sales that could have been used that would have led to a lower
appraised value. The amenities in the subject subdivision were not
complete on the effective date of the report. The report was done “as is”,
and Mr. xxxx should have made an extraordinary assumption that the
subdivision would be constructed as planned.

 

[Oregon Doug]

So Bob – what’s your point? Are you just trying to scare the pee outta some Oregon appraisers by citing what goes on in your state? Shame on you!

Bad appraisals are bad appraisals – no matter where. But that doesn’t mean that every appraisal must adhere to strict mortgage lending guidelines, now does it? Oh the poor ROW guys, the commercial nonperforming asset or special purpose appraisers…

I’m just suggesting that there is another source of business out there for the every day working appraiser – it’s not hard, it doesn’t require the constraints associated with mortgage lending work and there is an annual demand. They need only have the moxie to go get it (unfortunately, few have.)

OD

 

[Bob Ipock]

My point is not to offer up a junk appraisal to a taxing authority. They can and will file a complaint with the appraisal board when they see fraudulent appraisal reports.

My other point is that most appraisers don't understand the concept of "no bias" in tax appraisal work. The appraiser can never "win". The appraiser can never have a goal of lowering someones tax bill or tax valuation.

Most people on a board of equalization are pretty well versed in seeing un-suported value opinions on both the high and low side of reality. They do not think highly of "hired gun appraisers" who started with pre-determined directions in value.

 

[Oregon Doug]

Bob, I strongly urge that an appraiser never offer up a junk appraisal - for any reason.

Most appraisers understand the “no bias” concept although a number of them choose to deviate from the path of righteousness. The appraiser’s goal must always be to provide an un-biased value estimate (be that market value, value in use, ect…) It is the client who wins or not in the appeal process – not the appraiser. But my observation in the real world is that any client that engages in the appeal process with the aid of an un-biased appraisal will prevail. That’s a “win” in my book – it’s good for the ego and future employment.

I was a working appraiser for nearly four decades; I’ve served two terms on my state’s appraisal licensing board and I am a member of the RE Tax appeal board. Believe me when I say I can and will take down any “hired gun” appraiser that shows up. But, I’m tired of having to argue with attorneys who show up with Realtor CMA/BPO’s as evidence.

Appraisers could make the RE tax appeal process much more trouble-free and earn an extra buck along the way.

So quit tryin’ to scare ‘em Bob.

OD