Retrospective Appraisal Review - Photos

[Foothill]

Completed a retrospective appraisal review over the weekend. Effective date of value of Nov. 2006. Client stated if property currently listed, then attempt to perform interior inspection. I got in, measured, took photos, etc. Found appraiser's measurements were incorrect and lower level layout was off. I included new sketch and interior photos showing that appraiser included unfinished area as finsihed living area. It was very obvious that this part of the home had never been finished and a large stairway was included as GLA twice. Now client is asking me to remove the interior photos from my report as "they are no relevent for a retrospective appraisal". They are not asking to remove exterior photos or sketch, or change my GLA, or value, or anything else. (My value opinion was $40k less than reviewed report). I said I will not remove the interior photos as they prove I completed an interior inspection and evidenced that appraiser had not accurately described & valued the improvements. The report clearly states that my opinions are based on property condition reported as of Nov. 2006, yet values the property using my measurements and interior layout observed last Saturday. I'm holding my ground - like to read your opinions.

 

[Metamorphic]

I can see it both way.

Presumably you're talking about some kid of summary report, so keeping the interior photos as a work file item is acceptable.

But since the SOW requested interior inspection if possible, it does make sense to include those photos if they add to the credibility of the product and demonstrate your compliance with the SOW.

I dont know if I would include ALL the interior photos, because they are potentially misleading due to swings in QnC since the retro date. Effectively your report could have pictures of a bad interior, while your report describes a good interior based on a EA that the OAR statements regarding the report is correct (or vice versa). Obviously you could explain that potential for misleading away with proper commentary, but none the less the cursory reader could be confused by descriptions that say one thing, and pictures that show another.

However, I'd stick to my guns and include the photos that document your variance with the OAR on the unfinished area GLA.

 

[JSmith43]

Two things popped into my head from reading your post. The client may be concerned about crossing the line privacy wise and they may have encouraged you to enter the premises based upon false pretenses.

Appraisers are working in an emotionally charged legal mine field in some of these retro review situations.

So, how did you sneak in? Did you tell the agent you were measuring for drapes and furniture?:icon_mrgreen:

 

[Foothill]

Thanks guys... Client accepted as-is. I only included photos of layout issues. Home is vacant bank owned and for sale with lock box. Agent said go ahead and inspect. FYI - Appraised 2006 $440k by original appraiser. On market right now for $155k with three pending offers.

 

[CANative]

Just tell them to close their eyes when they get to the interior photos.

 

[JSmith43]

Well done, foothill. Thanks for the extra information. We are a curious bunch!

 

[Mr Rex]

Tell us more about the stairway being counted twice.

 

[Foothill]

4x14 straight open to above stairway with no storage space underneath. Below the stairway is unfinished crawl space. The appraiser never drew the stairway in her sketch, yet her dimensions included the 4x14 as living space for both 1st & 2nd floors. Her entire sketch was a mess, although she was only 64sf above published tax info for her total GLA. I measured the basic dimensions of the upper floor as 32x52 (her sketch shows 30x50). Her sketch is a basic rectangle, yet home has 4x11 in-set porch and two full bay niche extensions roughly 3x8 each. The lower level is cut up with a long narrow angled hallway, bonus room, unfinished/unheated storage room, and a built-in garage. She included storage room and stairs in 1st level GLA. My GLA equals exactly what public records has (not common for this rural market). Throughout her appraisal were boiler-plate comments and a lot of basic verbal diarrhea that failed to describe the individual characteristics of the subject location & additional. She failed to mention that subject has private road, steep slope, 60'-100'+ tall cedar trees - (she called the view "local" although it has an elevated filtered sierra view). Her comps were not the best and her adjustments were off-the-cuff. Her cost approach showed no clue of construction costs or how to value land. The appraiser traveled 60+ miles from her office to work in this neighborhood and I bet she was the lowest fee the client could find. I checked, she is no longer a licensed appraiser... THANK YOU!!... Sorry for being wordy... I get carried away... Not so much in my appraisals though.

 

[Mr Rex]

Square footage of stairs are to be included in the area of the floor from which they desend. The area occupied by the stairway would also be included in the GLA of the floor below. ANSI standards. I hope you haven't turned your review in yet..., you are on weak footing with the stairway/GLA issue..:new_smile-l:

 

[Doug DeMars]

boiler-plate comments and a lot of basic verbal diarrhea

Foothill-
Welcome to the forum...you'll fit in just fine.