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Now I've Heard Everything

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Restrain

Thread Starter
Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Called a real estate office to set an appointment on a sale in a nearby community. The real estate agent said "Why didn't the mortgage company call us to do the appraisal?" We said "Probably because it would be a conflict of interest to do the appraisal on a home that you are also the selling agent on." The agent responded, "Well, that's not been a problem on the one's we've done before."

So the realtor is also the appraiser. No wonder all sales make value.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Ah, Texas real estate at its best. Real Estate offices with their own mortgage company and appraisers is a growing trend. Builders (Pulte, DR Horton, Centex, KB Homes, etc) all have their own mortgage company and appraisers. We should just open our own RE offices and mortgage companies and join the crowd. The problem I have is nobody really wants to hear what there propery is really worth. Just last week, I was trumped on two Realtor sales by another appraiser. 1984- 1,700 SF home on 10 acres for $225,000 (unbelievably high). I had three sales within 2 miles that supported max $210,000 but more reasonably $200,000. Two days later that had an appraisal for $225,000 with no sales within 5 miles and none within 500 SF. The next was a 1,300 SF home on 4 acres for $169,000. Incredibly high and no sales that really support this value. "I am just too conservative and need to re-think my business plan." I did appraise one yesterday that was only supported by the sale I could not justify in May. They got another appraisal (I had three sales within a mile) got it closed and now I have a comp (it will be two now) that supports a new market. This spiraling effect seems to never end. Next month we will have sales prices $30,000 over these last two pushed sales and somebody will hit them. Forget about the "closest, most similar sales" just hit the number. I just can't compete under these conditions.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
ARE ANY LEGISLATORS OR STATE APPRAISAL BOARD MEMBERS READING THIS?

HOW ABOUT THOSE THAT INVEST IN FANNIE AND FREDDIE!!!!!!!

HOW ABOUT CAVUTO!!!!!!!!!!

Helloooooo....... anybody out there?
 

BenLuby

Senior Member
Joined
May 28, 2002
Professional Status
Certified Residential Appraiser
State
Georgia
Pamela,
We have the same kind of circus around here, realtors/appraisers in the same office, some related. Conflict of interest? Nah. Just because they are kin doesn't mean anything. If they ever make stupidity a misdemeanor we'll probably just have to give all of Washington D.C. the Death penalty.
 
B

Bemis Pownall

Guest
I think Arthur Anderson has a guide for appraising...
just keeps going and going
me.. this week I did one; custom home)average quality) I hit $400+/- which was I think is high. Construct to perm loan needed $606 to do deal. Same sort of spec home across street listed for $430+/-(I used as #4), My comp #5 30% larger at $520 adjusted to $400+/-, Im on the verge of being black balled cuz I follow the rules.
Seems the construction loan/appraisal was in the $600's, what the heck is going on??
The blind are leading the blind out there and homeowners and buyers are falling for it hook, line and SINKER, and they call it appreciation....come on already..
the refie values that alot of the Subprime want are not even close to the probable sales price these days as usual...do I hear "BUBBLE"
 

BarbaraNJ

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
New Jersey
At the risk of sounding naive, is it possible that federal regulators Do Not know that all of the laws passed as a result of the "Savings and Loan" failures------particularly those relating to Independent Appraisers-----are being circumvented on a daily basis????

Do you think that the investors in FMNA paper are aware that a good sized chunk of assets/loans are based on bogus appraisals?????

I now spend so much time shaking my head in disbelief that I'm perpetually dizzy.
 

Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
There is nothing in USPAP that says you can't do your borther's home. You just have to disclose it and also change your certification to reflect that there is a relationship that might bias the report findings. Of course that would kill the deal when it gets to underwriting, so I'll bet that realtor/appraiser didn't do it on those previous reports.

RStrahan, here's an idea. E-mail this thread to the Texas real estate appraiser's commission (or whatever they call them down there) and see if they write you back to find the identity of the realtor/appraiser who told you this.
 

BenLuby

Senior Member
Joined
May 28, 2002
Professional Status
Certified Residential Appraiser
State
Georgia
That is a good idea. We need to get USPAP tightened up to the point where it is illegal for an appraiser to do an appraisal for a family member. Not only buyer, but agent/loan originator too. Besides, then the ethical appraisers wouldn't be getting their teeth kicked in when they tell uncle Bill his house is not worth 150K, just 125. But that goes back to the old subject of getting the crooked appraisers out of the game. And, unfortunately, it is also the greedy lenders and real estate agents that help the process proceed. If we get rid of all the bad ones, we will be doing right. Otherwise, we will all be held to blame when this current crop of bad appraisers gets busted. Remember an old Navy saying. "One Aw S%$& instantly erases 1,000 attaboys." Care to guess how many Aw
S%$& we are looking at as a profession?
 
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