Provided copy of appraisal from 9 months prior

[sbbeck]

I have completed a residential appraisal and the borrower/owner provided a copy of an appraisal report completed by a different appraiser approx 9-10 months ago.

I am coming in significantly lower than the previous appraisal and it appears all of their comparables are in a different section of town that has land values $150000-$200000 higher than the subject's market area. (matched pairs and recent land sales are readily available)

The borrower is now emailing our office complaining about us coming in lower than the previous appraisal.

I know I can't crituque the appraisal in anyway with the owner or that constitues a review. Can I have a workfile for a review with no fee and then openly discuss what I believe is wrong or is this moving towards a dangerous gray area that could get me into trouble with the board?

Can i just email this owner two MLS sheets for land sales from the two market areas and say nothing else and let them figure out the rest?

I am tempted to report this other appraisal to the board as it appears this person either A is not familiar with the market (likely) and did not do the work necessary to be come familiar, or B intentially pushed value

 

[sbbeck]

wont let me edit original for some reason:
I hate the thought of reporting another appraiser and possibly endagering someones career, but their misrepresentation is now causing me grief

 

[TerryRohrer]

I would refrain from discussing the other appraisal with a party you know you can not satisfy. As to filing a complaint, if appraisers won't clean the sh*t out of their own nest, who should we expect to do so?

 

[Tom4value]

Am I correct in assuming that you did the appraisal for lending purposes? If so, just tell the owner that the lender is your client. If they have a beef, send all complaints to them and if they feel you should comment, it is up to them.

Say it nicely. 1. You stay on the right side of USPAP. 2. It punts away your “grief”. 3. Your lender may set the borrower straight for you. 4. You don’t ignore the angry, which only makes things worse.

 

[Fernando]

What were the circumstances in how you got the other appraiser's report?

 

[ucbruin]

What was the value of the 1st appraisal....
What was the value of your appraisal....

 

[Fernando]

If my comps are closer and more similar to subject, my report can stand by itself and clearly be understood as better than other appraisals.
I admit when I see other good appraisals, I am proud of that appraiser being competent.

 

[Tom D]

the ownee will not listen to you. they probable can't do the refi now. did you get a copy of the other appraisal before you did yours or after.
you are lucky, in that you can now defend yourself better. dear lender, my value came in lower tban the previous appraisal. my comps are from the same neighborhood.
the other appraisal used comps from a different, higher priced, area.

i would review that appraisal for any future problem, and have my answers ready.

 

[Joe Flacco]

Just tell him which is the best comp in your appraisal report and leave it at that. You probably already said which comp is the best in the reconciliation anyway. I wouldn't get into the other appraisal report.

 

[Fernando]

Just tell him which is the best comp in your appraisal report and leave it at that. You probably already said which comp is the best in the reconciliation anyway. I wouldn't get into the other appraisal report.

You don't have to answer to the borrower. Appraiser deals with the client/lender.
When agents call about an issue, I tell them to contact the client so I can do needed changes. And I thank them for giving me heads up for their "complaint". Fernando is so smooth.