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Oh, I hate being the second appraiser

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Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
You guys know the scenario. The first appraiser will not release the appraisal report to the new mortgage company or they are not on the approved appraiser's list or for some unknown :) reason the loan went south at the other mortgage company. The new loan officer sees the loan application, the estimated value of the other appraisal and all they need is a new appraisal with at least that much value. I never seem to be able to produce that value. Then, you have to spend additional time explaining to your good client why you are not as good as that other appraiser. Then, they will not give you the other appraiser's report, but they will tell you the comps they used. I always love that part. You explain that the other appraiser used sales outside the addition when there were sales in the addition they could have used like you, or that the three sales are all over 500 SF bigger, why didn't he/she use the sales that are the same size like you did. There is never a reliable solution and the other appraiser has used their sub par work to drive a wedge between you and your client. No matter how honest you are, how straightforward you are, or how blunt you are, you lose. You have to spend the next month mending your fences with your client until the next second appraisal assignment is ordered and the cycle starts over.
 

Judy Whitehead (Florida)

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I know what you mean, Tim. Believe it or not, though I had the reverse happen to me last week....log home on acreage. The homeowner said that he didn't know why the bank wanted another appraisal, since one was done by the same bank a few weeks ago. I tried my best to find out what happened with that appraisal, but everyone was a deaf mute and didn't know.

What I do know, is that this is one of my best clients and the underwriter liked my appraisal and they funded the loan. I can only think that perhaps someone did a property like this that didn't know what they were doing. I felt like I was conservative on the value estimate myself. Anyway, my client is real happy. Go figure.....it never seems to happen this way.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Tim

I have found that no matter how hard you try, you'll never make them happy, so a few years back I began a hard line tactic with all my Clients and have stuck to it;

"there are specific requirements we are expected to follow; both State and Federal Laws, and we will not under any circumstances change that thought pattern" - now, I don't think anyone is perfect, and I know I'm not the best appraiser on the planet, but I can defend all of my work at anytime and if that makes me #2, so be it.

Good Luck

8)
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
:evil: :evil:

And then there is the local "White Elephant" on which you have done a number of reviews over the years... The fact that it was continiously marketed for nearly 7 years with no 'acceptable' offers sort of sets the baseline as far as I am concerned... The appraisals tended to come in $100,000 + over the listings, because that is what the owners 'need'. I am sure that the older couple who own the place desperately need to get out from under it, but leaving the keys in the lock and running the day after a refi pays out is not exactly playing fair. :shocked!:

Seems the appraisers who perform the new appraisal(s) keep coming from further and further away :eek:nfire: the latest is from 2 counties away ... and the value is always "Made as Instructed - :2gunfire: no slam on the Institute there is just no better way to phrase what I see happening.

So once again, I seem to be the only one even willing to do a review on this oddball property.... I have never stepped foot in the thing, but have conducted extensive interviews with the various listing agents who have handled the property through the years... and once again am going to review an appraisal which totally ignores the listing history of this atypical property. This guy didn't even use similar age homes for hte 5000sf monster, but picked the eleite 'new' section of town for his comps...

IF there was a viable contract on the property I would be on the horns of a delimna: :? If there is ONE person willing to buy the thing at $zzz, who am I to say it isn't the value :puppydogeyes: ... but as an "unsold" value problem I have a REAL hard time coming up with a value in excess of a proven nonsale list history... :bad-words:

Here's the grief: as of 20002 the reporting requirements for "list/sale hist" are 1 year, the appraiser cannot be take to task for non-disclosure of list history: since it hasn't been listed in past 12 months. :evil:

So though I can 'blow another deal' the appraiser cannot even be taken to task with the board... BUT HE SHOULD BE :agrue: Pfui...
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Lee Ann:
Check out Statement 10--E. Analysis Issues 6. Lines 4121 to 4147 in the 2002 USPAP, especially lines 4135-4237. Active, withdrawn, expired, canceled listings are "market activity".
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Thanks Jo Ann....

None the less despite your other postings about AO's and such (some of which I quote regularly, (bless your generous heart) it is easier to search under JoAnn's postings which are nicely crossreferenced and annotated instead of fumbiling through USPAP :D , the fact is that he did not break any specific 'rooles' since all activity of this sort occurred more than 1 year ago :evil: :evil: .

So despite the fact that I shall produce a treatise on why this thing is a white elephant and probly ain't worth what HE says :twisted: , there is no specific reason for me to turn it in to the board as USPAP violations... it winds up being a matter of professional opinion, mine vs. his as to the VALUE issue :agrue: .

I'm pretty sure I'm right, and desipte the fact that he didn't have and probably didn't seek MLS information...(note to self: be very, very careful when leaving your home turf... 8O )
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
How about the Competency Rule, 2002 USPAP page 10, line 372--geographic area? Line 380--lacks necessary knowlege. Then an entire paragraph lines 388-397?
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
:lol:

Yeah, I was thinking about going there, but again I am not sure exactly WHAT this elephant is worth :oops: myself: NOBODY is until it actualy sells. I bet MY educated guess is closer than his though. By 33% or more 8O... I am a little reluctant to harp too heavily on I am RIGHT and his is wrong, but I am willing to opin MY estimate with support for how I got there: and hope the reader agrees.

At 5000+ sf folks keep trying to 'sell it by the pound' and forget to check out the teeth: it is long in the tooth and atypical for the breed even in it's age bracket. :roll:

Thus MY opinion that comparing it with high end under ten year old homes in the fanciest section of town probably is not the solution :evil:
 
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