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Really feed up now

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Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
He just put in the straw that broke the camels back. Who? The local number hitter. I got word from an extremely reliable source today about some more of his work. Fellow appraiser did an appraisal on a proposed home that simple would not appraise. Way over built and no comps to support the house. Builder is also on the Banks Board. A few weeks latter the same appraiser drives by the lot and sees the house under construction. Then this appraiser gets to appraise a house for one of the banks loan officers and asks what happened on that one.

Well they got the local number hitter to do it and said "even he had trouble" coming in with the needed amount. He went to the builder (a board member no less) and got sales information from him on some he had sold. Which means custom homes and not fair market sales. Loan officer then said "he had to juggle the numbers even with those to make it work"

Folks I am feed up! I don't know what yet but I am going to do something. I have not gotten my hands on any of his work but everyone knows him by his reputation. Even my insurance agent knew who I meant when I made a joke about our local number hitter. He is committing fraud and taking work from all the honest appraisers in the town. We get told that they will just get _____ to do it when we don't get their number. I know two other appraiser had a loan officer tell him he was going to use him because he "ALWAYS' hit the number.

Word got back to a Friend of mine that a loan officer made this commitment. "_____ is the most honest appraiser in town. But don't you want (the number hitter) to do it? He always gets what we need"

Fuming in Bama
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Check with the state and see if the state is willing to initiate an investigation on its own. Some states will, some won't. Tell them you have no copy of a report, but you know a number hitter is at work...In my state, they will (usually) investigate. If they know the property, they can (here) ask for a copy of the report...period. OR, they (or you for that matter) can contact the FDIC (or controling authority OCC, etc.), and ask they examine that appraisal next time the examiners are at the bank...typically they examine twice a year. Make sure they know the builder is on the bank board....they are supposed to examine them much more closely than other loans in the first place.
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Thanks Terrel, thats what I have in mind. There is not much else I can do unless some other appraisers are willing to complain the board too. I suspect there are a few around that would sign a joint letter to the board or perhaps file a complaint also.

I am just so fed up with this guy stealing our clients......... no on second thought they willingly use him!
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
The Alabama Real Estaqte Appraisers Board has an article titled "Appraisal of Manufactured Housing" that describes created sales (Fannie Mae's term in their new guidelines) as a no-no, so that could be part of your ammunition. http://www.reab.state.al.us/newsmanuf_hous.htm
I have a letter from Jim Parks of the Appraisal Foundation regarding land/home packages that basically says the same thing. The number hitter's use of created sales as comparables is definitely a violation of USPAP. I can fax that letter to you.
 

Charlotte Dixon

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
Fed up is one thing, but heart wrenching is another! I was assigned to do an appraisal on a property that was appraised as new construction 2 1/2 yrs. ago. That appraiser came in at $205,000 and counted a bonus room in sq.ft.living area that was not finished. My opinion of value last month was $196,000 with much less sq.ft., an unfinished fireplace, and with some interior work not yet complete. The owners are devastated. Of course, I'm the bad guy. Now the owners are in a bind, need to refinance so they can get their payments down and keep the house. The slum lender they borrowed money from has a reputation for hiring appraisers none of us every heard of, usually from a neighboring state. The inaccuracies in that report were unbelivable. The borrower doesn't have a clue that the #1 appraiser is the blame for the bind he's in now, not to mention that lousey no good broker he dealt with. Now it looks like the people will lose their house, unless they can get the crooked appraiser and crooked lender to bail him out for another year or two.
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Charlotte, I have not run into that yet but no doubt if it hasn't happened it will. I have turned down a couple of assignments when this persons name was mentioned as previously having appraised the house. Now I realize that I had a golden opportunity to get my hands on one of his appraisals ethically in the line of work.

A couple of times I have had sales in the MLS that simply didn't work in an appraisal that appeared to be very good comp. sales. In one case I asked a friend that works that town more than and I. She said, oh yea. I appraised that and it was to high. They got Mr. Number Hitter to do it after I did and it worked. It was obvious that it just sold to high compared to other sales I had. Sooner or later those people are going to want to sale or re-fi that house.

The saddest part is what that says about the lenders. They just want the commission. They don't care about the buyer or those that they are refinancing into bankruptcy. They know Mr. Number Hitter will make it work and don't give it a second thought. Just makes me sick.
 

Travis McGee

Senior Member
Joined
Sep 18, 2004
I am a little confused with the something here. I am in no way defending Mr. Number Hitter ( Lord knows I've seen him here in Pgh also), but the statement that he used " custom homes and not fair market sales" confuses me. It appears the subject is a " custom home " also, ( "way overbuilt " was how you described it) and these would appear to be the best sales to compare the subject with. As long as the the sales info can be verified somewhere else besides the bank officer, why would you not consider these sales ?
 

Dave Doering

Sophomore Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Missouri
Jeff,

Please take time to read your definition of market value that is a part of your appraisal reports. I think you will find that "custom" or "build to suit" homes where a builder contracts with a party to construct a home specifically for them does not meet the provision of sufficient market exposure. Therefore, "custom" or "build to suit", while being good information with respect to confirming cost, are not generally considered to be indications of market sales.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
In order for a sale to be considered it must have been "exposed to the open market" so that the market determines its fair market value, not the builder. If it was a custom home built and contracted by the builder for a specific buyer, it is doubtful that it was exposed to the open market. Many inexperienced and experienced appraisers do no understand this concept. The key is "exposed to the open market" (listed with MLS , sign out front, sales office with several plans available,etc). If you take your plan to a builder, buy a lot and have him build it for a fee, this is not a suitable sale for a sales comparison. Jo Anne will follow with a whole dessertation about " created sales" and how they are not proper sales. This is very prevalent in the MH market, where buyers pay more than the home is worth because the builder and developer "create" their own market and sell to uninformed buyers.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Lets see if I can not so windy this time!

Print out and read Fannie Mae's guidelines that went into effect 6/30/2002
Get a copy at http://www.srappraisal.com/FNMA

Read Section 102.02 - Unacceptable Appraisal Practices and Section 103 - Refusal to Accept Certain Appraisals and for good measure, Section 304 - Factory Built Housing (which also applies to site built homes regarding created sales).

And some more interesting article in addition to the one above on the Alabama Board--although they discuss manufactured homes, the reasoning applies to site built homes also.

http://www.ncab.state.nc.us/FAQ.htm
"What is a Liegitimate Manufactured House Comparable for the URAR?"

http://www.llr.state.sc.us/POL/RealEstateA...rs/reanews2.pdf
http://www.llr.state.sc.us/POL/RealEstateA...rs/reanews5.pdg

http://www2.state.ga.us/grec/greab/greabne...rmanufhsng.html

http://www.talcb.state.tx.us
"Whats New" "Assemblage as Applied to Manufactured Housing"

my own article at: http://www.naifa.com/gram/2001oct/stratton-oct01.html

And I am willing to fax a copy of a letter from Jim Parks of the Appraisal Standards Board regarding land/home packages to anyone that requests [email protected]
 
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