Reconsideration of Value: How to respond?

[residentialguy]

I DID!!!

i did find the market value value and it was below the sales price. they gave me 1 closed comp in the ROV and it also was below the sales price AND had two more bedrooms than the subject property AND a swimming pool and spa. after it would be adjusted out is was far below the actual appraised value. so not only could they not get me a decent comp they sent me a comp that would have brought the value down!

not sure why u are making such a big deal about this??

As you can see by Sandy's post that inadvertently gave her away, there are skippys out there that the easiest sales to use and ignore the conditions of the sale, as well as ignoring the subject data (even though USPAP requires us to consider all market data) giving them more of a lower hybrid disposition/liquidation value rather then the Market Value.

You seemed to be ignoring the multi-offer sale contract as well, hence why I made issue. Not only are they market participants, there are no other variances and unknowns to contend with like you have with your comps. I glad to hear that you did. I'd hate to see you fall into Sandy's bevy.

 

[J Grant]

Where is Mentor these days? Hope he is okay have not seen any posts for months.

 

[J Grant]

Just because a MVO is below SC contract does not mean it was done by a SKippy or that the appraiser used only the easiest sales or a hybrid of liquidation and MV.

I do know Res Guy thoroughly researches his sales, we disagree sometimes on things...

 

[Peter LeQuire]

Look, I took as many screaming, 'You didn't hit my value!!' calls as anybody prior to the HVCC stuff. I'm honest, straight shooting, and it is what it is. I've also had to answer more than a few ROVs and I think there has only been 1 where my value changed after the fact, and that was only because I was able to finally get in touch with a source for verification that wasn't there when I turned in the report the week prior.

At the same time, I've noted that the former 'Hit 'em High' appraisers that never met a number they couldn't hit have now changed with the times. They couldn't truly appraise in the past, picking the highest three sales and plugging them into the form. Now, they've decided it's en vogue to be a 'conservative' appraiser, although they still don't know how to appraise. They think they're making their client happy. That's all they do know how to accomplish. They now pick the 3-4 low balls and add a couple listings because that's what they've been told to do. Still crappy work, and still inaccurate.

We also have the scenario of the AMC high mileage appraiser that doesn't quite get the nuances of the market they've driven 1 hour plus to get to. Views, differences in restrictive covenants, builder quality, etc. gets past them and besides, it's just too much friction and difficulty to indentify these variables, let alone make adjustments for such.

The general public needs a recourse against this kind of activity.

Would you want to take your chances hiring an appraiser with your attitude in today's market climate? I sure wouldn't.

"High mileage appraiser" gets my vote for appraiser slam phrase of the week. I will make haste to use it and circumvent any copyright claim Ms. Platt might have in it.

 

[J Grant]

The "high mileage" appraiser seems to be an urban myth. Much as we don't love AMC's, most of them especially in the past yer, have a limited geo areas they assign work in, with most not assigning over a 25 mile radius and some less than that, assigning within under 20 or under 15 miles (unless it is a rural area)

There are incompetent appraisers that are close to the subject and those that are far. Certainly appraising in an area one is familiar with is advantageous, but regarding an appraiser who is just not good at understanding markets, or one with an agenda, such as hitting SC price, geo competency is meaningless.

 

[J Grant]

If anything, a high volume AMC appraiser who skimps on research or understanding markets, will hit a SC price rather than opine a MV that differs. Hitting SC price means less client friction, no ROV, speed rules and on to the next job since volume production and client retention is what motivates these appraisers.

 

[Caterina Platt]

The "high mileage" appraiser seems to be an urban myth. Much as we don't love AMC's, most of them especially in the past yer, have a limited geo areas they assign work in, with most not assigning over a 25 mile radius and some less than that, assigning within under 20 or under 15 miles (unless it is a rural area)

There are incompetent appraisers that are close to the subject and those that are far. Certainly appraising in an area one is familiar with is advantageous, but regarding an appraiser who is just not good at understanding markets, or one with an agenda, such as hitting SC price, geo competency is meaningless.

There is a difference between geo competency, and plain old competency. The high mileage appraiser is not an urban myth at all. I know of two or three folks right off the top of my head who have an issue with this very subject. One has already lost his license, and another is facing a complaint over the issue. Mind you, geographic concerns were not the only problem with their work habits.

The third honestly tries, but sometimes bites off more than he/she can chew.

 

[Mike Kennedy]

Yes, and to find that value, you need to consider the subject contract as well.

Why??

 

[SANDY]

Where is Mentor these days? Hope he is okay have not seen any posts for months.

I think he has a stigma or maybe it's a stigmata

 

[residentialguy]

Just because a MVO is below SC contract does not mean it was done by a SKippy or that the appraiser used only the easiest sales or a hybrid of liquidation and MV.

I do know Res Guy thoroughly researches his sales, we disagree sometimes on things...

I never said that, JG. A buyer can pay too much. It needs to be supported by the market. As you well know, I've opined MV below contract. But I didn't do it as a result of ignoring relevant market data and using the easiest sales, ignoring their condition of sale, etc.

Why??

It's a USPAP thing. We are to consider all market data and the subject contract is considered a "significant piece of market data" by USPAP. While not to be a target, a competent analysis of relevant and credible market data must be the appraiser’s basis for a market value conclusion.