New Index Topic?

[Atlanta CG]

I know as a reviewer, as many of us are, we see so many errors, not only of omission but of commission as well, that our instincts are to immediately report them to the local commissions as examples of incompetence. Yet, as we seem to hear, few results occur from our reportings. I am hesitant to report these to the local authorities, as some are simply examples of being too busy to do the job correctly. Perhaps a new index topic, called ?? (you name it), that will detail examples we, as experienced review appraisers, see on a daily or weekly basis that, by identifying the examples, will benefit the others in this forum not so experienced, that they will pay more attention to the errors so their reports will be more professional and competent. ie., today I reviewed a large single family with 5 bedrooms and only 1 bath on the upper level, but no functional obsolescence was applied. This may be a gross example of incompetence, but reminders to others that reviewers are watching for such errors may make them more attentive to proper appraisal practice in filling out the forms, without having to report them to the locals who may do nothing since they are receiving too many complaints to attend to all of them. Some may be good appraisers but not well trained by outfits with many number crunchers out simply for a big profit. I like to think that many need this "second chance" but are afraid to ask the simple questions that this forum may address. Or, am I being too naive? (sp?)
John from Atlanta, reaching the big "0" and becoming more conservative and understanding as 11/3 02 arrives.

 

[Pamela Crowley (Florida)]

I like that idea. Let's see what others have to say.

 

[Wally Jones]

John,

You are certainly not being too naive. I'm a prime example of an appraiser who would directly benefit from an index topic such as you suggest. I began appraising just over three years ago and became state certified early this year. My "training" was about 10% riding around with another trainee who was deemed my "trainer" by virtue of the fact he had been registered six months longer than I had and 90% "take your best guess". It's been an uphill battle ever since. A year and a half ago I escaped the shop that had been kind enough to hire me and I now work with another former member of the same shop. (I know, we're just ungrateful s.o.b.'s out to take away our benefactor's business. But that's an even longer story.)

About every three months, I purchase (and actually read) a new book concerning appraising and that has helped a lot. When I found this forum, with so many experienced appraisers willing to help, I felt like I hit the mother lode! (And I did. Thanks, y'all.) Each report I write I try to review as if it will be the one I have to defend in court one day. However, with so little relative experience, I know that I'm missing some things simply because I don't know what to look for. This has sure been a long-winded way to say I think you have a good idea!

8)

 

[BarbaraNJ]

John,

You seem well intentioned, but discussing problems in this forum may not reach the appraisers you are doing business with. And any suggestions we may give you (or anyone else) on a topic could be appropriate--or not.

I suspect by your post that you can already tell which errors are "typos", which errors are caused by poor proofreading (ie, spelling and grammar),
which errors are due to lack of experience/knowledge and which are just plain fraudulent.

So you job should be easy.....for typos, proofreading and similar mistakes, you need to tell the firm they need to be more careful. You should give them three chances to improve. If they don't, its because they don't care and you should no longer use them. Otherwise, the reports will come in cleaner and they will (or should) appreciate your help.

For errors due to lack of experience and/or knowledge, you should sit the appraiser down, explain that you require a higher standard, and continue to use the firm on a more limited basis for six months. This will give the appraiser some time to take a course or two and speak to more experienced appraisers or read up some more. The appraiser will do so if they really want to stay in the business, and you will know by the reports if they are getting better or staying the same. If the reports don't improve, the person is only in the business to grab as much $$$ as possible, and your decision to stop using their services will be easy.

Where you see outright fraud, no amount of education will help; only license suspension will.

 

[Karl]

This could be a VERY GOOD thread, somewhere sometime ago someone posted top ten items that will get a review ANYONE seen that or have a top ten or any 1 of ten?

 

[Karl]

P.S. Couple my flags MLS without number's Using a Parcel # for address no street, rd or anything just Parcel#

 

[Dale Smalley]

Stuff I hate on reviews
Time adjustments within the past year.
Front Footage adjustment for waterfront properties.
Boiler plate addendums that cover every CYA statement available.

 

[Em Tee]

Ditto what Wally said!

 

[Red Blumenstock]

Karl,

Here is one list:

1. Appraising to meet a contract price
2. Failure to use supportable adjustments
3. Failure to utilize truly comparable sales from the subject property
neighborhood
4. Failure to properly confirm appraisal data, over-reliance on secondary
sources, such as multiple listing service data.
5. Comptency problems arising from acceptance of assignments to
appraise or consult on unfamiliar property types and/or unfamiliar
appraisal methodologies.
6. Making appraisals or reports to conform to client standards without
regard to the result being misleading.
7. Emphasis on speed and quantity of production over quality.
8. Misunderstanding and misapplication of concepts of complete versus
limited appraisals.
9. Misunderstanding and misapplication of levels of reporting.
10. Misrepresentation as to roles of associate and supervisory appraisers,
particularly misrepresentations regarding inspection of subject and
comparables. Also failure to acknowledge contributions of associates.

There are several lists in my seminar for reviewers and this is one of them. There are others.

Richard Sorenson, MAI in his book,
Appraising the Aappraisal, published by the Appraisal Institite lists another group as follows:

"1. Ignoring assignment specifications.
2. Misleading language
3. Too much boilerplate. (one of my pet peeves)
4. Use of unedited cloning from other reports.
5. Mathematical errors.
6. Ommission of sources of data & verification and obvious lack of
verification
7. Inconsistencies within the report.
8. Use of outdated information
9. Omission of basic information
10. No analysis of current market information
11. Reference to material not included in the report or addenda.
12. Overlooking possible value influencing sources."

Fannie Mae has a list of seven unacceptable practices and there are others, but enough already!

Red