Properties used to Complete Form 1004MC

[Dennis J. Black ASA IFAS]

I can understand where you are coming from as it relates to people constantly questioning your work and challenging you, that gets pretty tired in hurry, I face the same thing in my profession. I'm sure the challenges have been fast and furious since the HVCC hence the defensive nature of the response. Perhaps I should have asked a different question...rather than ask if I should file a complaint with the licensing board the real question is would YOU have included the three properties I am questioning in the MC addendum dataset and do YOU think the appraiser correctly calculated the declining market percentage?

I anxiously await your response.

Go hire a well qualified appraiser in your area.

 

[Em Tee]

Andrew:

Why don't you either hire an appraiser to review the appraisal you have and see what an expert in your area says about it, or hire an appraiser to perform a new appraisal on your property (without divulging ANY information about the prior appraisal) and see how that comes out.

 

[Cob]

I can understand where you are coming from as it relates to people constantly questioning your work and challenging you, that gets pretty tired in hurry, I face the same thing in my profession. I'm sure the challenges have been fast and furious since the HVCC hence the defensive nature of the response. Perhaps I should have asked a different question...rather than ask if I should file a complaint with the licensing board the real question is would YOU have included the three properties I am questioning in the MC addendum dataset and do YOU think the appraiser correctly calculated the declining market percentage?

I anxiously await your response.

This is just amazing, how in heck would I know unless I actually did the appraisal, or unless I was familiar with the area in question and had performed appraisals in the area. I've never seen the MLS print outs of these properties, I've never performed an appraisal in Mass., how would you expect someone who live in Texas to answer that question???

A declining market is a declining market, if it's 17% or 24% it's still declining, in my opinion one of flaws with the MC form is that almost ALL lenders will not accept comps from 7-12 months ago, most want them to be less than 6 months and 2 to be at least within 90 days. The other problem I have is that the data my look good or bad based on the time the appraisal was performed.

If one performs an appraisal on say Set. 1st, then the data from 0-3 months is going to look one way, because they will be using data with comps from Aug, July and June, so there are going to be tons of listings and sales to report as real estate activity in all parts of the country is very active during this time. On the other hand if one performs an appraisal on say March 1st, the 1004 mc section for 0 to 3 months will look another way because the comps and data from Feb., Jan. and Dec. are going to look pathetic as there is traditionally very few sales and listings at this time every year in almost every part of the country.

So as to if I would use the 3 comps that you are questioning, I have no idea as I live several thousand miles away, maybe your can write the appraiser or try and call again. Maybe offer to meet him for coffee somewhere, bring the comps in question and go over them with him, or maybe just fax them to him and explain your reasoning.

 

[The Bob]

Did the report include Active or Pending Sales?

Sometimes, these can be a better a guide for the adjustment in a declining market. For example, if you have similar sales from 6-9 months ago selling for $350,000-$360,000 and similar properties are on the market today for say $330,000-$340,000, it would be hard to argue your house is worth $360,000. On the other hand it's not unusual to see Active Listings that bear no relation to what houses are actually selling for (wishful thinking).

 

[Em Tee]

So as to if I would use the 3 comps that you are questioning, I have no idea as I live several thousand miles away, maybe your can write the appraiser or try and call again. Maybe offer to meet him for coffee somewhere, bring the comps in question and go over them with him, or maybe just fax them to him and explain your reasoning.

Jacob:

You know that's bad advice! The appraiser cannot talk to him as he was not the client.

 

[Old Man]

Andrew:

Why don't you either hire an appraiser to review the appraisal you have and see what an expert in your area says about it, or hire an appraiser to perform a new appraisal on your property (without divulging ANY information about the prior appraisal) and see how that comes out.

Em Tee -- Both procedures would cost money. It is cheaper (no cost) to have one or the other performed in some manner on a public forum that provides the desired results or conclusion requested based on the limited, or selected, information provided.

 

[jeanwillick]

You should have your lender give the appraiser an OK to discuss this with you. He can't discuss without their approval as he is bound by confidentiality.

Some appraisers won't budge. Others, if given additional information, will evaluate new data and reconsider (which is how the new data should be handled).

 

[AndrewBiz]

Em Tee -- Both procedures would cost money. It is cheaper (no cost) to have one or the other performed in some manner on a public forum that provides the desired results or conclusion requested based on the limited, or selected, information provided.

Old Man - I didn't create the forum entitled "Ask an Appraiser", I found it on YOUR website and I did just that, I asked an appraiser. If you don't like this part of the forum why are you reading the posts? I am not looking for a desired result or conclusion, I plan on getting the correct conclusion when this plays out. As for the limited and/or selected information comment...I am just providing the info contained in the appraisal (I doubt you have even taken the time to review my issue). My goal here was to simply get some type of consensus on the merits of my situation prior to reporting one of your colleagues to a licensing board. Apparently you are more concerned with making derogatory comments than assisting in the situation or maybe even coming to the defense of one of your own.

Maybe you could start a new section on the forum called, "Ask an appraiser a serious question so you can make an informed decision about the merits of reporting someone the licensing board...and Old Man ridicules you". You could moderate that forum and make fun of everyone that asks questions and get a real kick out of it, sounds like a blast.

 

[Mary Tiernan]

AndrewBiz - please understand that we are located all around the United States with varying markets and sales.

Also understand that each and every appraiser has been trained by someone else - whether each of us is trained correctly is the question. Some appraisers have no idea how to perform a market analysis, hence, the 1004MC form - an attempt to have the appraiser provide more than just a few words like "stable market values" or "declines noted."

Each report should contain enough analysis and summary to allow the reader of the report to come to the same conclusion, however, each report is typically prepared for a lender whose use of the report, and understanding of the report, may be different than that of the casual reader.

Your concerns appear to raise red flags, however, there is only one way to deal with this. You need to discuss your issues with the lender. You can ask for another appraisal or review of the original.

If your lender refuses to comply, hire your own appraiser then discuss with your lender the results of that report. Remember, though, that an appraisal performed for a homeowner typically cannot be utilized in a lending transaction.

Good luck to you.

 

[AndrewBiz]

Did the report include Active or Pending Sales?

Sometimes, these can be a better a guide for the adjustment in a declining market. For example, if you have similar sales from 6-9 months ago selling for $350,000-$360,000 and similar properties are on the market today for say $330,000-$340,000, it would be hard to argue your house is worth $360,000. On the other hand it's not unusual to see Active Listings that bear no relation to what houses are actually selling for (wishful thinking).

Jim - Thanks for the feedback. There are two active listings on the report. I will keep my eye on those two listings to see what they end up selling for because as you have stated their listing price may just be wishful thinking.