My typical field review assignment

[Tim Hicks (Texas)]

I just received another field review assignment. My fee is $325. I am getting these reviews because I report factual and concise data while pointing our USPAP problems and poor appraisal practice. Today's is a doozy. Well, it is just like the others. Manufactured home on 1.5 acres built in 1983. All three comps are 4-5 miles away (one year old homes) with the only verification source being a mortgage company. Now, I can not prove it, but I would bet that the one year old homes are really refinances of existing contract for deeds or owner financing. There are no verification phone numbers of names to verify the sales price on these homes. One of the sales is 2,077 SF and the subject is 1,400 SF. When I did a comp check of the MLS, I discovered five sales within two miles that are built between 1980-1990 and are actually verifiable. The sales range on the MLS sales is between $45-65,000. The appraised value is $100,000. This field review will take longer than a typical appraisal, but $325 was the best I could negotiate. This is the third review on this paricular appraiser. Every report has the same MO. The appraiser was formerly a chapter president of a major appraisal organization. This has no bearing on the review, but I just wanted to eliminate the "trainee doing unsupervised work" angle. So many people on this forum refuse to believe that there are many "bad apples" in our profession. I realize I am getting these reviews because they had red flags, but it really makes you wonder how many fly under the radar. Even if 1% of the appraisals done annually are done fraudulently, do you realize how many bad appraisals that is? We need to clean up our own profession or the AVM's will win by default. Just my $.02.

 

[airphoto]

Tim,

May I share one with you? Review of a tinhouse sale out in the Thule Bushes of western Montgomery County (NY.) Value brought in at $109,000 for a new can on 5 acres .. the old can dumped in the back acres .. single-wide ..

Took along a guest, ladyfriend who's a school superintendent .. no appraisal background whatever. She took one look, and noted the same odor that I did .. surrounded by barefoot children, boarded up properties .. livestock loose in the yard, etc.

Check of the assessor's sales data finds that NO property in that area ever sold for $100,000 unless it was a farm with acreage ..

Found first comparable .. shown on report as 2,000' ranch on 6 acres .. no mention of outbuildings. Found to be 1,200' ranch (agreed with roadside verification) on 66 acres w/new six stall horse barn - visible from roadside. Further support from tax records/assessor and MLS. It went rapidly downhill from there ..

Bank sent me a 1/2" thick rebuttal from the appraiser, where he admitted all the errors/mis-representations but still felt that he had a 'good' appraisal. I figured the value to be about half of that reported, didn't report a value, but suggested the lender get a third opinion.

Bank ax'd if I wished to comment on the rebuttal .. I sent them a one paragraph letter: suggested that they send the whole file to the state ..

Fella complained that he'd been appraising for 40 years and had never been so 'savaged' in a review .. :twisted:

 

[wyecoyote]

It always upsets me when an appraiser tries to hide behind how many years they have been appraising and/or what desgination they have. I did a review once that the original appraisers whole rebutall was around the desingation that he had and how many years that he has been appraising. My response was much like yours send both my field review and his appraisal into the state and let them decide who was right and wrong. After replying that I did not hear anything from the original apprasier and still received both field reviews and appraisal orders from the client. They are a local credit union and were "happy" with my suggestion of sending the work to the state.

Ryan

 

[Tim Hicks (Texas)]

Just an update. The original appraiser failed to mention that the manufactured home was listed for sale for #46,900 at the time his inspection. Gee, $100,000 while listed for over nine months for $46,900. I must be conservative. After all, we are just a bunch of witch hunters. These guys knew what they were doing, but all of a sudden they have so many excuses.

 

[Dee Dee]

I can't believe you guys have been trying say it's a 'good thing' to do field reviews! :lol:
I dunno.....

Dee Dee

 

[airphoto]

As a lil follow-on, I did an REO appraisal on a 2-year-old double-wide can not that far away from the one described above .. it's about to expire out of MLS .. they listed it at $51,900.00 and it's now priced at $39,900.00.

I'd made the remark that an extended marketing period was likely as the cigarette suckers had made such a stinking mess of the interior that it's probable market would be limited to similar cigarette suckers ..

Nice to be correct. Also learned this week that an estate value that I'd done last spring as being worth +/- $160,000 sold at $153,000 and the son told me how he'd given the fella a deal. Nice to be pretty close .. however, listing agent conned them into a $183,900 original listing, so they missed last Spring's selling season .. once it was reduced to $161,900 they got a purchaser pretty quickly ..

 

[Mountain Man]

It is amazing how little we know until we are proven wrong because it under sold. :roll:
Mell.

 

[Blue1]

I agree, I am always getting the same appraisers to review. Just had one recently: New house in a new subdivision. Legal description was for the wrong lot, Sq.Ft. of home off by more than 15%, building skech showed the wrong house, wrong parcel number, under-reported sale price of one "comp" sale by $50,000 and on, and on, and on. This person has been in the business for 20+ years so I don't think they're just "stupid" mistakes.

Bruce M

 

[Tim Hicks (Texas)]

Bruce, welcome to forumite status.

 

[rijman]

After a field review in which a different lower value was concluded I will typically receive a rebuttal from the appraiser. A good appraiser will attempt to provide further relevant details. Some appraisers refer to the fact that "their value" was cut. That comment really bothers me. As a reviewer, when you complete your review, you can be as liable for the appraisal value as the appraiser. "their value" was not cut, I just conluded "my own value" for which I have full liability to my client and the state licensing authority the same as the appraiser.

While some lenders white out appraiser names when forwarding the report for review I prefer to see the name. I feel I am unbiased in just reviewing the report, you do not review the appraiser, but I like to know when a report comes from someone who consistently reports inaccurate information.

Regards,