Out Of State Review

[Oregon Doug]

Charlotte - I really glad to hear that you have been appointed to the Delaware Council of Real Estate Appraisers - as you know, I'm on he Oregon Appraiser Certification and Licensure Board (ACLB). I believe that it's really important for the various regulitory agencies to establish and maintain a dialogue on issues such as this that impact appraisers across the various jursdictional lines. I would like to hear from Frank Grigore (FL) on this issue.

It sounds as though you & I are on the same page (at least in the same chapter) on this issue. Oregon can not monitor Delaware appraisers any more than Delaware can monitor ours - agreed.

What is a "practice permit"? Is that like a temporary permit issued by Delaware so that an out-of-state licensed/certified appraiser can practice in in Delaware?

This is an area in which I think that a national license makes sense.

Wayne - how about a forum for the various state regulators to hash out issues such as this.

Oregon Doug

 

[Mike Garrett RAA]

They have their own organization, website, and forum.

 

[Charlotte Dixon]

Originally posted by Oregon Doug@Apr 10 2003, 11:03 PM

What is a "practice permit"? Is that like a temporary permit issued by Delaware so that an out-of-state licensed/certified appraiser can practice in in Delaware?

Oregon Doug

Yes, that's it Doug. With only 2 meetings under my belt, I have quite a bit to learn. But on our agenda there were a number of appraisers each month approved for temporary practice permits (one job deal). February was snowed out. Most of these were Certified Generals from other states wanting to do appraisals on a particular food chain, convenience store, or hotel chain in Delaware.

This is very interesting to me, and I'm anxious to be on the "inside" track. I do plan on submitting this Review Appraiser issue for discussion, but probably not until summer. We have an all day hearing next month, and I understand there are not too many in Delaware. I agree. A network for Council/Board members is a good idea.

Mike: Where?

 

[Dale Smalley]

Andrew
There sould not be a liability issue that prevents good appraisers from doing reviews. The only liability issue should be with the rubber stamp reviewers.

I do them because I really dislike playing the value game to make a living. You really have to think about what you are reporting and not just be a robot data collector.
My first one this morning the appraiser uses comps across a major highway all newer in age, I pull MLS and find the subject is listed for 5k less than appraised vaue. Pull sales and find 4 in the subdivision same age and size 3 are foreclosure sales. None of this vital market information was included in the report. So my review based on his inspection and neighborhood data is 20k less. There it is, he can rebutt or run away.

 

[Oregon Doug]

Dale - you just said "I pull MLS and find the subject is listed for 5k less than appraised vaue. Pull sales and find 4 in the subdivision same age and size 3 are foreclosure sales. None of this vital market information was included in the report. So my review based on his inspection and neighborhood data is 20k less. "

Since you have reported a value in your review, have you performed an appraisal? I think the answer has to be yes.

Your comments imply that you are knowledgable regarding the subject's neighborhood - that is, you understand that the appraiser ought not to have used comps from the other side of the highway and you have confirmed that by discovering and using more suitable comps within the subject's subdivsion.

Sounds as though you have completed a supportable review based on your knowledge of basic appraisal technique and your understanding of market dynamics in your geographic area.

I couldn't do that in Yourtown because I lack the geographic knowledge of your market area. (I don't remember which part of the country you are in - somewhere over in the SE corner, I think.) If I sent you an appraisal of an 90 year old home on the south side of Cottage Grove in Lane County OR that includes a comp on the east side of Highway 99 in Cottage Grove, a comp in the town of Creswell (10 +/- miles north) and another in the town of Oakland - about 15 mi +/- away in Douglas County. Would you think anything is wrong with that? Why?

Oregon Doug

 

[Dale Smalley]

Doug
I would not have a problem with that if it were explained in a manor that makes sense. But If found multiple sales data say within 1/2 mile I would have to question why they are not considered. But you are right rural properties are the hardest because there no truly similar comps and rarely in good data. That 1 appraisal may be as good as it gets.

I understand your point as an appraisal purest but it is just not economically viable to have a local field reviewer in most cases. Man it takes a minimum of 3 weeks just to get an appraisal in OR much less a field review. In this case if the appraiser has a logical explanation why newer age homes in a different subdivision carry more weight than similar age homes in the subjects subdivision, they are welcome to challenge my findings. But as it stands I don't believe the BS. Because the market data (not me) suggests a lower value.