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

[cdanj]

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.

 

[TerryRohrer]

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.
Seems like the prior stated the subject in C4 condition. 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?
Also, is there some common boilerplate used in these reports? If any of you care to provide me some boilerplate I would appreciate it.

Rather than use someone else's boilerplate, you would be better served to open USPAP and go through each item in Standard 3 to ensure your analysis covers each, and then through Standard 4 and ensure your report addresses each. You will be far better prepared to defend your analysis and reporting in the event that becomes necessary.

 

[cdanj]

Rather than use someone else's boilerplate, you would be better served to open USPAP and go through each item in Standard 3 to ensure your analysis covers each, and then through Standard 4 and ensure your report addresses each. You will be far better prepared to defend your analysis and reporting in the event that becomes necessary.

I will do so. Have you done many of these? Have you had to defend your report?

 

[TerryRohrer]

I will do so. Have you done many of these? Have you had to defend your report?

I don't do many because they don't pay well, but have had rebuttals from the original appraiser that had to be addressed. That has been a rare situation, but in the environment we are in, all should assume everything they do will be under scrutiny. Your very best defense is to be proactive.

I would also recommend that you partake in the Appraisal Institute's courses on Reviewing. (1)Review Theory - Residential, (2)Reviewing Residential Appraisals and using FNMA Form 2000, and (3)Review Case Studies - Residential. In addition to addressing the difference in mindset between strictly appraising and reviewing, suggested verbiage and commentary are addressed.

 

[Dublin ohio]

I will do so. Have you done many of these? Have you had to defend your report?

I have done numerous over the years. Not as many recently. Except for the occasional general audit review. In my experience. You will find that most lenders get a review because something "red flagged" the report. Don't get too "nit picky". Some minor items I just mention and move on. Concentrate on the factors that make a difference. As far as defending your review. Have not had to do that more twice if over 25 years. Both of those were short and to the point. Since the OA decided to attack the reviewer instead of defending their original report. Nothing to defend on my side. Since they never address the points in my review. Just be thorough and stick to the facts. You will be fine.

 

[J Grant]

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.

why are you so obsessed with the conditon as an REO back in 2019? Though you can comment on it, either you agree with the appraisal being reviewed C4 rating or you do not.

As far as the value, if you disagree with the OA value, then you are asked to provide your own comps and/or apply what you believe are better adjustments to their comps and then explain why that value is better supported than the OA value.

Yes you are responsible for your work and a review can be reviewed or challenged. Even if you agree with their OA value, you still have done an appraisal in the review, because a value opinion can be a benchmark -

Typically in a forensic review the original appraiser is not contacted by a reviewer, but check with your client about it.

 

[ramrcdk]

My very first "2000...​

MAIN REASON for your assignment: 10. Is the opinion of market value in the appraisal report under review accurate as of the effective date of the appraisal report?
SECTION II — COMPLETE ONLY IF REVIEW APPRAISER ANSWERS “NO” TO QUESTION 10 IN SECTION I.

Are you in disagreement with the Appraisal's Opinion of Value AND seemingly proceeding with using altering & further-dated information other than the : the Appraisal Report Information to provide a brand NEW Opinion of Value Appraisal.
To be Clear: are you are opining a different market value based ON: YOUR difference in opinion of market reactions TO: condition & seemingly a high value?

"" The prior appraisal seems high and the sale price is about 30% less than the appraised value.
Seems like the prior stated the subject in C4 condition. But, when I review the interior photos the kitchen has the same cabinets as when it last sold in 2019 as a foreclosure, (SO what) 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. (BE SURE) The floor in the kitchen is a tacky 80s tile (humm' are you Fair or Biased. Will you use those descriptions in your report ?) floor that goes into the family room.... photos from 2019 foreclosure sale show that floor is missing tiles just outside of the current photo.""

So, won't you use the information found in the Appraisal as a base for the instructions you are to follow? OR are you calling-out
the appraisal in your difference of not-actually viewed...seemingly worse than C4 ? and USING alternate photos from 2019? AND perhaps a basis for changing the CONDITION RATING & applying a Market Based adjustment for same?
1st: decide what you decide to do. Use the Appraisal that is to be REVIEWED or use 2019 foreclosure photos. 2nd: will the WORD: seemingly
become clearer once you "complete a review & reconcile the SCA Section?"
Kitchen & Flooring opines may NOT trump the "overall condition" & applied Report Rating: C4, right? As of the DOI: Appraised Date.

USPAP Standards 1-3 Apply to REviewing. Take the day to Read & Review. Standard 3, pages 25-30 at a minimum. Will lines 816 & 817, 908 & 909, & 933-935, 941-942 be your basis for differences in the condition that warrant a difference Opinion of Value conclusion?

BE NOT BIASED and don't DO what most UW-Reviewer STIPS are about: finding something in order to be JOB-IMPORTANT.
_____________________________________

**EDIT: did the appraisal "lack" sufficient communication in describing Page 1 Improvement Section "conditions"? The History Section?
*Do you have "the SOW for the initial appraisal? Sale? Arm's Length?
Sometimes, ALL lender-clients have "review work" completed simply due to the mandated AMC AB state rules.

 

[shrubberyvaluation]

I don't do reviews but 30% over the sales price seems crazy unless there is some circumstance why it would not sell for market value such as a family sale or not exposed to the open market.

 

[Mejappz]

Reviews are another thing that needs to be abolished. If the lender doesn’t like the original report, get another appraisal.

 

[TerryRohrer]

Reviews are another thing that needs to be abolished. If the lender doesn’t like the original report, get another appraisal.

But then how can they get two E&O policies to target for the price of 1.5?