Retrospective appraisal problems

[J Grant]

So USPAP S2-2(a)-x-(1) doesn't apply if it's a 'private' appraisal (whatever that is)?

? I don't have time to look it up, working - but where does USPAP say an appraiser must answer questions, to a client's satisfaction, after report is delivered ?

 

[alebrewer]

It says the appraiser must: "provide sufficient information to indicate that the appraiser complied with the requirements of STANDARD 1 by: (a) summarizing the appraisal methods and techniques employed;:, and (b) summarizing the information analyzed and the reasoning that supports the analyses, opinions, and conclusions, including reconciliation of the data and approaches;". The appraiser wouldn't have to answer any questions if he/she did what they were supposed to do the first time.

 

[J Grant]

Yeah next time I will withould payment from my electrician for not explaining to me to my satisfaction how the electrical box he just installed works!

 

[phoebega]

As for Realtors, if you have no confidence in them either, then I recommend you auction the property.

I have confidence in the opinion of the realtor I searched out in December. She lives nearby, was the listing agent 35 years ago when my parents bought the house, and has focused exclusively on the immediate area for all those years. She was the one who indicated properties in the neighborhood fetch a $25,000 premium because of the preserve location. I did not disclose to her I had an appraisal in hand and was concerned about the appraiser's adjustment for the preserve view (among other issues).

The other realtors I met with, not so much confidence.

 

[alebrewer]

Yeah next time I will withould payment from my electrician for not explaining to me to my satisfaction how the electrical box he just installed works!

I really have no idea if electricians have a similar 'USPAP' or not - and don't care. I do know that appraisers do, and they're required to adhere to USPAP due to the state regulatory requirements, so.... not sure that argument would hold up at a state board hearing, J...

 

[alebrewer]

I have confidence in the opinion of the realtor I searched out in December. She lives nearby, was the listing agent 35 years ago when my parents bought the house, and has focused exclusively on the immediate area for all those years. She was the one who indicated properties in the neighborhood fetch a $25,000 premium because of the preserve location. I did not disclose to her I had an appraisal in hand and was concerned about the appraiser's adjustment for the preserve view (among other issues).

The other realtors I met with, not so much confidence.

I would be very careful about that line of thought, Phoebega. Unlike appraisers, Realtors are not held to any objective standard when it comes to the offering of price opinions. She may well be familiar with your market, but she has a LOT more latitude when offering her opinion on what the value of a home might be. Appraisers, on the other hand, are restricted to applying recognized methodologies and techniques which result in credible analysis, opinions, and conclusions.

 

[Artemis Fowl]

I have reviewed the OP again. You ordered an appraisal. An appraisal was delivered. You disagree with an adjustment, and I will assume the final value. Hearsay about this or that but no actual analyses provided as support other than "my Realtor says". Still not seeing where you have any justification not to pay the appraiser.

 

[alebrewer]

Still not seeing where you have any justification not to pay the appraiser.

Agreed - no justification to not pay the appraiser. IF, however, the report does not contain adequate support for the appraiser's opinions and conclusions - given the nature of the intended user (i.e. not UAD/Fannie speak), then the client most definitely has the right to ask for clarification. As would any client or intended user.

 

[Artemis Fowl]

Agreed - no justification to not pay the appraiser. IF, however, the report does not contain adequate support for the appraiser's opinions and conclusions - given the nature of the intended user (i.e. not UAD/Fannie speak), then the client most definitely has the right to ask for clarification. As would any client or intended user.

Not disagreeing with that at all.

Sounds like the appraiser is not MIA and answering questions but the OP doesn't like the answers. This is not exactly a new issue in the industry.

 

[alebrewer]

Sounds like the appraiser is not MIA and answering questions but the OP doesn't like the answers. This is not exactly a new issue in the industry.

Quite possible. If it's just a disagreement with value, the appropriate path would be to provide the appraiser with data/information that the OP thinks does not align with the appraiser's opinions and conclusions. Sans the existence of such data, and assuming the appraiser did, in fact, provide adequate support for his analyses and conclusions, then there really is nothing left to disagree about, other than the Realtor's opinion - which, again, would almost ALWAYS be subordinate to an appraiser's opinion.