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Review Appraiser And Scope Of Work

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Mary E Perry

Freshman Member
Joined
Feb 16, 2003
STANDARD 3 allows the reviewer to address all or part of the work under review (also referred to in this Advisory Opinion as the “original work”). In every appraisal review assignment, the reviewer is required to "… develop and communicate an opinion or conclusion about the quality of another appraiser’s work.” The reviewer’s opinion about the quality of the work under review includes addressing its completeness, relevance, appropriateness, and reasonableness, all in the context of the requirements applicable to that work

Scenario: I comply with the SCOPE OF WORK on FNMA Form 2000 or FRMC Form 1032. Comps. 1, 2 & 3 in original report are verified by me with data from the tax office AND speaking with the buyer or seller relative to the Comp. (Yea that verification with one of the parties to the sale is a burden but tax info, MLS info and believe it or not original appraiser info is not always accurate in my rural community).

Results: Opinion of Value is reasonable based on reviewing/verifying Comps 1, 2 & 3 and the remainder of the report. And those three comps are perfect and fall within every guideline imaginable to satisfy everybody.

Problem: Original Appraiser is notorius for sticking Comps. 4, 5, & 6 in the report even though they may be outdated, not relevant, fall outside of recommended guidelines, etc. The reason this appraiser does it is to stop the calls from the Underwriter. I HAVE HEARD HIM SAY IT WITH MY OWN TWO EARS.

Solution: Can I not verify these additional comps in the report based on their relevance and appropriateness to the report?
If I am understanding A0-20 as quoted above I can do so given the above described Results.

Reporting of Appraisal Review: Would an attached addendum stating that I did not review sales 4, 5 & 6 because Sales 1, 2, & 3 support the Opinion of Value be USPAP compliant? If yes then how much detail should I go into as to my reasoning for not reviewing the additional sale? (I would love to quote the original appraiser's comment about additional comps. - but I'll be nice).

FYI: Should you ponder why I am being so anal about having to verify comps 3, 4, & 5 if 1, 2 & 3 are so PERFECT & ACCURATE, I'll make it simple. In some previous Reviews of this Appraiser's work I had to report let's just call them typo's, oopsies that just happened to be in critical areas like Square footage, date of sale being only 18 months off, number of bathrooms yada, yada, yada and these were Comps. 1, 2 & 3 and did result in a new opinion of value from the Reviewer.

Needed from those wiser than I: A solution as I have been reading and re-reading USPAP, FNMA guidelines, etc. for toooooooooo many hours over the last couple of days to resolve this because I have two more Review Assignments on my desk from this same appraiser. And yes Comps. 4 & 5 in the original report have red flags all over them. :angry:

Fact: HECK NO, I'm not getting paid enough for this. But maybe a reliable solution from someone out there is all I need to get some much needed :asleep: and maybe some future profits.

Lastly: Please any comments/wisecracks from those that can't give me URGENT ASSISTANCE save them until I hopefully get a solution. I can handle the wisecracks later in the forum because I have no problem laughing at myself. :beer:

Mary
 

Dale Smalley

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I guess if he used them as part of the value conclusion then you have to consider them as part of the review. Otherwise just note their presence as being supportive or just extra data.

Sorry all that USPAP stuff confuses me too.
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
I belive that FNMA 2000 forms questions 6 and 7 state that you have verified that they are the best comps and closing dates/settlment dates. Question 8 states that the specifications for the comps are accurate and question 9 statest that the adjustments are reasonable and supportable.

Based upon these items I would say that you have to comment about comps 4, 5, and 6 and verify all information. As far as USPAP goes IMHO SR 3 you have to verify all information for the comps.

I know that this may take you more work but to me when completing a review that is what I am hired for and we charge accordingly for it. Typical cost of a URAR. Some clients have B****ed about the costs but they still send them here for regardless of the cost.

Ryan
 

Mary E Perry

Freshman Member
Joined
Feb 16, 2003
I belive that FNMA 2000 forms questions 6 and 7 state that you have verified that they are the best comps and closing dates/settlment dates. Question 8 states that the specifications for the comps are accurate and question 9 statest that the adjustments are reasonable and supportable.

Thanks for trying to help but I am working from the new FNMA 2000 Form put in place 12-2002. Your info applies to the old FNMA 2000 Form, which from my understanding is still acceptable if your client wants it. Question 6 on the new form wants to know if the sales selected are truly relevant .......and most reflective of the subject market area. There is no question 7 or 8 on the new form.

I have no problem doing the extra work, quite used to that actually. One of the reasons I took the extra time to do the post was to maybe help some others that are using the New Forms and having the some of the same review problems with the speedy appraisals they might be reviewing.
 

Oregon Doug

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Oregon
Mary - I believe that the short answer is found in line 1118 of SR 3 in which you, as the reviewer, need to communicate an opinion about the quality of all OR PART of the work of another appraiser.

Your opinion under 3-1(e) may be that these additional comps are not relevant to the appraisal - so state.

Anyway, that's my opinion......but I'm usually wrong.

Oregon Doug
 

Ed Potrafke

Sophomore Member
Joined
Dec 17, 2002
What does it say in the addendum? I'm known to add a few extra comps, if I think that I will end up having to add them anyway. I use a statement that says somthing like "The appraiser used comps 1,2,and 3 for determining his opinion of value, blah, blah, rural market, blah, blah. Comps 4 and 5 were added as additional support for the appraiser's opinion of value. Comps 4 and 5 were not used in determining value" or somthing similar.
 

Mary E Perry

Freshman Member
Joined
Feb 16, 2003
Thanks Oregon Doug for the thought to ponder and research because it might be my answer.

Thanks Ed Potrafke for the helpful suggestion, unfortunately this appraiser doesn't specify which or if any sales are given consideration in determining his opinion of value. And yes I put a similar statement in my addendum if additional comps are warranted.

Mary Perry
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
Mary,

You are signing an appraisal review and commenting on the work product of another appraiser. I see nothing wrong with making a comment that you don't consider comps #4, #5 and #6 as being as indicative of the final value conclusion as #1, #2 and #3. But in no way would I consider ignoring their presence. If you're asking whether it's okay to do less in the way of verification and/or analysis on these secondary sales data seeing as how you agree with the primary sales data and the final value, I don't really see that as a problem if you have already commented on them not being as relevant as the primary data. No matter what you do, if some of this secondary data has 'typos' in them and you don't catch them, your client may have cause to be unhappy with you. However, I doubt you'd get burned. After all, the true basis of the appraisal (based on what you've heard his attitude to be) still stands as being valid.


George Hatch
 

bradellis

Member
Joined
Jan 16, 2002
Mary,

You must analyze all the data in the report. However, there is nothing prohibiting you from, as George suggested, stating that 4-6 are essentially irrelevant to the value opinion.

So, you would answer the question about these being the best comps as "no"= 1-3 are just fine, but 4-6 are irrelevant. Then on the question that asks if you agree with the value opinion, say yes.

Brad Ellis, IFA, RAA
 
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