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Review list - Anyone ever sued Chase or others.

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mutigerfan

Thread Starter
Junior Member
Joined
Feb 11, 2008
Professional Status
Certified Residential Appraiser
State
Missouri
I have never been under investigation or been disiplined - ever.

Long story short - Appraised property in a town of 818 in a county with a total population of 6K. Very Rural.

My neighborhood desciption was consistent with the school district boundaries and what little market data I had available to me. The review appraiser (in Florida) disagrees. Remember I live here in the area and I have no idea if the "review appraiser" is even an appraiser at all. They will not identify themselves after repeated request. Chicken Bleeps.

Anyway, they put me on a "appraisal review list" which means that any LO who uses me and intends for Chase to purchase must have a 2nd appraisal done on the subject. As you can expect, this has effected my bottom line quite a bit.

I sent a rebuttal letter to them and it was denied as "boundaries still determined to be too large". FYI - the boundaries I selected, the school district boundaries, had less than 30 sales in the past year. How can this be to big?

I am considering seeing an attorney. Any advice?
 

Pam Wyant

Senior Member
Joined
Feb 12, 2003
Professional Status
Certified Residential Appraiser
State
West Virginia
The only reason they put you on the list was due to your boundary description? That seems crazy to me.
 

mutigerfan

Thread Starter
Junior Member
Joined
Feb 11, 2008
Professional Status
Certified Residential Appraiser
State
Missouri
Yes - thats why I am so upset. I have appraised homes in the same town for 8 years and have never had a problem with this before. I think what I have is a "review appraiser" that is not an appraiser at all......
Do you know of any other ways to identify the "review appraiser"?
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
mutigerfan, please contact me about this.
My email: pec514 @ yahoo. com (remove the spaces)
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
My neighborhood description was consistent with the school district boundaries and what little market data I had available to me.
Me thinks that you need to review the definition of "neighborhood". A neighborhood is essentially, "A district or area with distinctive characteristics: example/a neighborhood of fine homes; an ethnic neighborhood. (although we would never use this in appraisal work)" In other words, for appraisal work, a neighborhood is an area where the houses are physically, functionally and locationally similar making them eligible for use as relevant comps. When the housing physically and functionally significantly change, you have left the neighborhood. Being essentially a low density rural appraiser for 15 years, I fully understand the problem with defining a neighborhood in a rural area. They just don't seem to exist nor can they be defined. FHA insists that you put something physical (street, river, RR track, etc.). We used to say that we assumed the neighborhood was housing with similar linkage to the main center of economic influence. Then we went to considering it to be within a 1/4 mile or up to 3 to 4 mile radius of the subject. However, the one thing that we were forgetting to tell the reader was that it was impossible to designate the neighborhood by simple geographic references. Now, here's an example of what we might say in describing a rural, low density neighborhood: Due to the low density in the subject's location, larger sites and lack of conformity, the subject's neighborhood is indeterminate. Lacking a neighborhood that can be defined physically, for analysis purposes, the neighborhood is considered to be that area within 1/ 2 mile radius of the subject. Comparative sales/listings are taken from the larger market to provide meaningful data for analysis.

At that point, we describe what is around the subject and then go ahead and use a larger defined area for sales/listing data.

BTW, I have reviewed many an appraisal where the appraiser defined the neighborhood as the township or the subject's school district. I have never seen a whole township or a school district where the housing meets the definition of "Neighborhood". Use of such large areas indicates to me that the appraiser does not have a basic understanding of what a neighborhood is as part of the appraisal process.
 

Craig Farr

Junior Member
Joined
Sep 26, 2004
Professional Status
Certified Residential Appraiser
State
Arizona
"A district or area with distinctive characteristics". It is my impression that the URAR was designed to 'walk' the appraiser through the appraisal process. That is why 'Neighborhood' is near the beginning. It forces the appraiser to identify the district or area in which the subject lies and from which the comps will be taken. For umpteen years, without challenge, I have defined, using physical boundaries, a rural neighborhood that totals 100 square miles. (There are more elk than people there!) It is "A district or area with distinctive characteristics". The distinctive characteristic is the "country lifestyle" which is typically a doublewide on 36 acres. A buyer of the subject would unquestionably consider other properties within that large neighborhood. Were I to define the 'neighborhood' as being a half-mile or one mile radius around the subject I would actually be misleading the reader......a violation of USPAP!

Thus, I suspect that the reason for being on the Review List is MORE than the identification of 'neighborhood'. Just my opinion.....could be wrong...
 

StephHigdem

Member
Joined
Jan 5, 2004
Professional Status
Certified Residential Appraiser
State
Idaho
While I fully agree with what you've said Richard, I also see where the OP is coming from. There is also the expectation that all your comps will be from within the subject neighborhood. If you're market is based on 10 sales, what are the chances of them all being in that 1 pocket of similar homes? I've always felt that was a "no win" field. A reviewer can get you for too large a neighborhood or for comps outside of the neighborhood boundaries. No amount further explanation will satisfy a reviewer or underwriter with a "checklist" mentality.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
While I fully agree with what you've said Richard, I also see where the OP is coming from. There is also the expectation that all your comps will be from within the subject neighborhood.
Such an expectation may exist but only until we dispel it by simple, complete and understandable explanation. That's why I say the boundaries are "indeterminate" (Thanks Rich for the terminology) and describing the large sites and lack of conformity. One of the best ways to explain this to the UW is to snag an aerial photo from VirtualEarth and paste it in the report. A photo is worth, in this case, at least 378 words.
 
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Kevin Mc

Elite Member
Joined
Jun 7, 2004
Professional Status
Certified Residential Appraiser
State
New York
Enough with the lectures. How can someone from 1000 miles away determine what does or doesn't constitute a neighborhood or neighborhood boundaries? The answer is they can't. I would have my attorney absolutley demand a copy of the "review".
 

Kevin Mc

Elite Member
Joined
Jun 7, 2004
Professional Status
Certified Residential Appraiser
State
New York
BTW, I have reviewed many an appraisal where the appraiser defined the neighborhood as the township or the subject's school district. I have never seen a whole township or a school district where the housing meets the definition of "Neighborhood". Use of such large areas indicates to me that the appraiser does not have a basic understanding of what a neighborhood is as part of the appraisal process.

That is quite an assumption. I live in an area where many neighborhoods are defined by the school district and one had better make sure each and every comp is within that district or offer some extensive explaining why they are not.
 
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