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Rebuttle, NEED HELP

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nevalues

Thread Starter
Freshman Member
Joined
Jan 13, 2008
Professional Status
Certified General Appraiser
State
New Hampshire
I did an appraisal on a single family few weeks ago and my appraisal got reviewed. The reviwer Knocked down the value by $37k by simply providing 2 ACTIVE listings in the subject neighbourhood, one is a bank owned property that needs major repair. In reaching his GREAT opinion of value he used the 2 listings mentioned above and the sale of the subject itself 8 months ago, was sold for $310. I clearly stated in my report that the subject has been renovated since last sold. Basement is now completely finished, only 50% was finished before, in addition to that the new owner renovated the part that was finished before, new ceramic tile floors throughout the lower level and marple tiles in the bathroom and fresh paint. He also finished the attic with the addition of 1 bedroom in the attic. He put up a new fence outside and added a large brick patio in the back. He also freshly painted the entire first and second floor, refinished the hardwood floors throughut the first and second floors and replaced some old ceiling tiles by putting new sheetrock. All the above renovations and upgrades were clearly stated in my report and the reviwer reason for disregarding all that was and I qoute " Appraiser did not include pictures of the renovations thus the data is deemed unreliable". I need your help with my rebuttle. I am open to all your suggestions. Thanks

Pursuant to your request, I am responding to the review of the above captioned property.

The review appraiser stated that the subject was reduced three times, this is correct. The property was purchased at below market value at the time and that is documented by the appraisal performed on the subject at the time of sale..

This property has been renovated and upgraded since its last sale. I personally performed an appraisal on the subject prior to the sale date and therefore I relied on what I have seen in making my statement that the property has been renovated since last sold and not the notes on the MLS listing written by the listing broker who has an interest in the property sale.

The review appraiser quotes from the Multiple Listing Service when referring to the comparables, he does not state if he talked to the respective Brokers involved as I did at the time.

The reviewer suggested that two property listings were relevant, these homes are active listings and one is bank owned and in need of much repair, these listings cannot be given much weight.

The review appraiser did not supply any data to support any value change, no closed sales, pending sales or any specific data that this appraiser did not already cover at the time of inspection. I understand the difficulty in performing a Desk Review, without the benefit of physically exiling the sales and the neighborhood involved.

The sales used in this appraisal are less than one mile from the subject and fairly recent and are considered to be excellent comparables. It is my opinion that the comparables used are very representative of the subject and that the value is very well supported.

Furthermore; I have been a Real Estate Appraiser for over 15 years, much of this time spent valuing homes in this specific area.


If I can be of any further assistance or if you have any questions, please feel free to contact me.
 

Rice Brewer

Member
Joined
Dec 14, 2004
Professional Status
Certified Residential Appraiser
State
Arkansas
I suggest you remove any reference to "appraiser" and replace it with "appraisal".

Rebut the review, not the reviewer.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Recommendations: Firstly, hit the deck, take a walk, play with the dog or kids for an hour. Reacting emotionally to a Review is a normal thing which can, if allowed, diminish the validity of your rebuttal.

Always address the Report - not the Reviewer.

"just the facts - Jack" IS the way to go. A Review Opinion is just that, an opinion. If the review identifies GLARING, indisputable errors of ommission or commission in your report......... THEN you have a problem.

Based on your posting, if the ONLY way the Review (who may have been directed to attack and lower the value in Advocacy of his/her clients cause) FAILS to cite specific, USPAP-based, incompetence in your report - then I recommend having a cup of cawfee...... and consider utilizing a rebuttal similar to that below.

Prior to taking ANY action, recommend.....printing the Review report.....and using a COLORED HIGHLIGHTER..... identify any and ALL misleading comments, incorrect data, etc. which, if found, should be added to the suggested rebuttal below (personalized in your style of course):

The Review Appraisal, performed by a Licensed Appraiser, stated a disparate Value Opinion supported ONLY by providing 2 ACTIVE listings in the subject neighborhood.

One Listing is a Lender REO which according to Listing # ............ needs major repairs including:

The Second Listing, according to Listing # ................(cite any recent updating, lack thereof, etc. to firmly establish Age, Quality, Condition, Utility etc variances which negate its' reliabilty as remotely comparable to the Subject in its' RENOVATED Condition as of the Effective Date of Appraisal - NOT its' prior sale date.

In accordance with the Scope of Work for this appraisal assignment, the appraisal report clearly, and accurately, described both the condition of the Subject at the time of its' recent prior sale and its' Current, Renovated, Condition as of the Effective Date of Appraisal. The Opinion of Value rendered was fully supported by extensive description of the exterior and interior condition characteristics of the Subject and utilization of the most competitive closed sales in the subjects' neighborhood which effectively bracketed the Actual Condition of the Subject.

Pursuant to the USPAP Standard 3, in the Appraisers' opinion, the Review Appraisal fails to adequately support a disparate value opinion utilizing the most recent and similar competitive value indicators which were available to the Reviewer as of the Effective Date of Appraisal resulted in a misleading, unsupported, Review Value Opinion. In the Appraisers' opinion, the Client should give no weight to a Disparate Value Opinion clearly developed in violation of USPAP

STANDARD 3:
APPRAISAL REVIEW, The COMPETENCY RULE applies to the reviewer, who must correctly employ those recognized methods and techniques necessary to develop credible appraisal review opinions and also avoid material errors of commission or omission. A misleading or fraudulent appraisal review report violates the ETHICS RULE.


As of the date below, in the Appraisers' opinion, no changes to the data, nor Value Opinion, in the Appraisal Report (dated xxxxxxx), are required.

----------------------

then send a Complaint containing the Review Report, a copy of the orig report, and your rebuttal to the Reviewers' State Appraisal Board.
 
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Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
New FAQ's concerning geographic competency

I have a question. Is the reviewer geographically competent? Is he/she licensed in your state? If not he/she may be in violation of USPAP. A review can be done by someone not geographically competent as long as they do only a review of process, USPAP compliance, and other administrative matters. But, the ASB in the most recently FAQ states that to select different comparables and opine about value, the reviewer would need to be geographically competent.

Here is the link:

http://www.appraisalfoundation.org/s_appraisal/bin.asp?CID=12&DID=1125&DOC=FILE.PDF
 
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Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
Appraiser did not include pictures of the renovations thus the data is deemed unreliable

Why not have a lot of pictures in the report? I always have a minimum of 9 interiors.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Tim - while I agree with you and do the same......

"All the above renovations and upgrades were clearly stated in my report"

meets USPAP and fannie requirements
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
I agree with Tim. Provide the photos of the upgrades and make notations in the photo gallery of what the upgrades/renovations are. Since you did the prvious appraisal....before upgrades and renovation, you could probably send the reviewer into flames by making a side by side photo comparison. You have based your new value on the renovation. Prove it.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
You have based your new value on the renovation. Prove it.
exactly. When you have a property which sold recently you need to report why that sale is not relevant to this sale or aver that it was. Rice is also correct about putting the response in the third person so to speak, not I / the reviewer. But "the report" , "the review report"...
and learn to spell "rebuttal"...
 

nevalues

Thread Starter
Freshman Member
Joined
Jan 13, 2008
Professional Status
Certified General Appraiser
State
New Hampshire
Thank you all for your help. Mike, thank you for the sample rebuttal letter you posted and to Mr. Shields, when your blood is boiling, sometimes you forget to spell your own name. This is my first. I have been appraising for over 15 years and I never had to do this before but like they say, there is always a first time. I am using Mike's post as a starting point with some adjustments and adding 30 pics like you suggested before and after. I called the broker the reviwer used his listing as a second comp and he confirmed to me that it is being offerd as a short sale. So now I have the 2 comps used by the reviwer, One is bank owned and the other is a short sale and both are still active listings.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
So now I have the 2 comps used by the reviwer, One is bank owned and the other is a short sale and both are still active listings.


AND......NEITHER ARE COMPETITIVE NOR COMPARABLE.

PROVE IT...... IN THE REBUTTAL. INCLUDING COPY AND PASTING THE ....ACCURATE DESCRIPTION OF THE SUBJECT'S RENOVATIONS.... AND EXPAND ON (which should have been in the appraisal along with supporting photos) ..... WHY THE COMPARABLES UTILIZED ..............were ......................COMPARABLE!!!!!!!


P.S. ...........IF..the SOW of work for the appraisal included a fannie report form ....... copy and cite the FANNIE requirements for INTERIOR PHOTOS...... they are REQUIRED for functional obsolescence and DEFERRED MAINTENANCE.......they are ..........suggested to support opinions of effective age and condition ...- NOT MANDATORY.


Strike One " reviews' REO listing shot discredited.

Strike Two: reviews' "short sale/listing" comp 2 .....discredited....

Strike Three: reviews "phantom" requirement for interior photos discredited.

Review....either intentionally or incompetently in violation of USPAP .....is fully discredited .........batter is ..OUTTTTTTTTTTTT


NEXT BATTER...........
 
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