My very first "2000 - One-Unit Residential Appraisal Field Review" Need Boilerplate and a few questions.

[Mejappz]

That's precisely why 'reviews" exist.

 

[Tom D]

a 2019 foreclosure is a different appraisal than the same property appraisal now. i don't see why not a 30% increase over the 2019-22 time frame. just the noted word 'foreclosure' can lower a value.
i would tell you not to get too anal about the minutia. just review it the day of the appraisal, not biased by your perception of it being a previous foreclosure. you weren't present, or involved when that previous sale occurred. i would go for the value first to see if that is the issue. if it is then i might look at other parts of the appraisal.
be careful about what you criticize.

 

[Joe Flacco]

When they have two appraisals with big difference in values and they need to get to the bottom of it, you can charge very good fees.

 

[George Hatch]

I just got a field review for an appraisal performed on 02/28/2022.
The prior appraisal seems high and the sale price is about 30% less than the appraised value.
The prior appraiser stated the subject in C4 condition and used all C4 comps.
But, when I review the interior photos the kitchen has the same cabinets as when it last sold in 2019 as a foreclosure, but the drawers have been removed, they are painted white and the dated Formica counter has been replaced with what looks like a piece of plywood. The floor in the kitchen is a tacky 80s tile floor that goes into the family room.... photos from 2019 foreclosure sale show that floor is missing tiles just outside of the current photo.
I researched the septic and well and the records indicate they are from 1969.
Can I reference that the subject seems essentially unimproved since the foreclosure sale date of 2019 based on comparing the interior photos from the MLS sale at that time to the interior photos from the provided appraisal?
Your thoughts on this?
I'm assuming reaching out to the original appraiser is out of the question.
Also, is there some common boilerplate used in these reports? If any of you care to provide me some boilerplate I would appreciate it.

You took the most important step right in the beginning: you spotted the big untruth upon which the rest of the valuation is based. Hat tip to you.

Now you just gotta connect the dots in your report. The subject condition was grossly mischaracterized; this is what enabled the selection of sales which aren't actually among the most similar in terms of condition and appeal. This additional untruth is exacerbated by the failure to apply any adjustments between these sales vs the subject's actual conditions.

These are all factual observations that an objective reader would agree. As long as you're correct with your facts there is no comeback for the appraiser because you're not arguing subjectives or style.

Long story short, the report says one thing and the facts say something else; that's how the unreasonable value conclusion occurred. Had the subject attributes been more accurately described the reduced comparability of these particular "comps" would have been obvious. Assuming there are other sales that are more similar in condition, those would be the ones you would use as a reviewer to support your opinion that the appraiser's assertion about the comparability of the sales they used were inaccurate.
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As for boilerplate, do your own. I've seen too many examples of appraisers just using other people's boilerplate on the cut-n-paste basis without adjusting them to fit each individual situation.

 

[shrubberyvaluation]

a 2019 foreclosure is a different appraisal than the same property appraisal now. i don't see why not a 30% increase over the 2019-22 time frame. just the noted word 'foreclosure' can lower a value.
i would tell you not to get too anal about the minutia. just review it the day of the appraisal, not biased by your perception of it being a previous foreclosure. you weren't present, or involved when that previous sale occurred. i would go for the value first to see if that is the issue. if it is then i might look at other parts of the appraisal.
be careful about what you criticize.

Hmm I read it as being a sale and the appraised value is 30% higher than the current sales price. Seems a big red flag when the appraisal is that far above for an open market non distressed transaction.

 

[George Hatch]

a 2019 foreclosure is a different appraisal than the same property appraisal now. i don't see why not a 30% increase over the 2019-22 time frame. just the noted word 'foreclosure' can lower a value.
i would tell you not to get too anal about the minutia. just review it the day of the appraisal, not biased by your perception of it being a previous foreclosure. you weren't present, or involved when that previous sale occurred. i would go for the value first to see if that is the issue. if it is then i might look at other parts of the appraisal.
be careful about what you criticize.

I read the OPs comments to mean the subject is involved in a current sale. If so, the main reason they would be looking at the 2019 sale would be to analyze it as is required. Additionally, the 30% disconnect between a current contract price (if that's what's going on) vs the appraised value would require a LOT of explaining whether the appraised value was reasonable or not.

 

[sputnam]

If you disagree with any of the appraiser's opinions and conclusions then, you need to support your opinons and conclusions. As already stated, don't be overly nitpicky. If there are errors of fact, state them but, unless they are significant, don't make a federal case out of them. A lot of appraisal reports have minor errors that have no impact on the credibility of the appraisal. If you can, get and review the Letter of Engagement for the original appraisal. In appraisals, credibility is judged in the context of Intended Use. Everything in your review should be as of the effective date of the original appraisal. You pretend that you only have the data that would have been available to the appraiser at the time of the appraisal. As already stated, you're job is not to play gotcha. It's to review the quality of the original appraisal. It's okay if you end up concluding that the original appraiser did a good job.

 

[Tom D]

Hmm I read it as being a sale and the appraised value is 30% higher than the current sales price. Seems a big red flag when the appraisal is that far above for an open market non distressed transaction.

you can be a million dollars over the sale price. the lender only goes by the sale price, or a lower appraised value. now that doesn't mean that the underwriter wasn't concerned about something in that appraisal. i have no issues with looking at the past sale but to bring up 'foreclosure', that was a distressed sale possible at that time. without any of us seeing this appraisal we certainly are having a good time speculating why? but the current value is affected by current sales, not 2019 sales. why would an appraiser go 30% over the current sale price intentionally to create themselves a problem? yea i know, there are truly bad appraisers out there. i certainly saw them when i did review work for a sub prime lender.
most of us have stopped doing reviews because of the time it will take to figure this one out. and also, you are more liable, as the reviewer, for this value than the original dope.