Review of Review

[Terrel L. Shields]

2000 field review by out of town appraiser of local appraiser. If you disagree with the value aren't you supposed to check off whether you inspected it or did a 'complete visual inspection'...no check off.

Reviewer regrids the SA. $1,000 for a carport adjusment. $500 for ¼ bath...$1000 for a pellet stove...

Finds address on house and address on one comp don't agree with the report...duh, the town changed address numbers recently to make 911 happy. Lots of houses are wrongly addressed because the owners haven't changed their numbers. The orig. report reports the correct number. (I don't know if they mentioned there were descrepencies).

Claims the high range for neighborhood value is $750,000....there is one dwelling with a commercial shop sold by a contractor on 40 acres 8 miles out of town - not a neighborhood range I would consider. It is not relevant to the fact few properties in town have sold as high as $200,000...but they use $45,000 as the low end...ok, there are quite a few selling for less. Why not pick out the cheapest sale if you are going to pick an outlier value on the top end? Also, relies first upon MLS age and then on Assessor age to diss the original appraisers work...reviewer uses 30 - 50 years as age range for all comps....ok - all the houses are pre-WWII but were remodeled sometime in the past 20 years. What is the age? really. Its just a guess.

I really wonder if the client learned anything useful from this review. I don't know how.

 

[Colleague]

I'm not crazy about appraisers reviewing other appraisers work. More often than not, the reason the lender orders a review appraisal is because they question the value, and the review appraiser is aware of this.

To me its appraising your competition and who can't find something you don't agree with a competitor's appraisal if you look hard and long enough. It seems like the reviewer is either too busy to disagree and just lets it fly or just wants to make the other appraiser look bad and try to defend their work.

I question the process. What ever happened to picking up the phone and calling the appraiser to ask some questions? Or, if value is really questionable why shouldn't they just have to order a new appraisal from a different appraiser? In other words, let the review appraiser form their own unbiased opinion of value without any influence from how the other appraiser arrived at their opinion of value.

Like the example in the original post, some brilliant review appraiser questioned a recertification of value for an appraisal I completed about 6 months ago. The reviewer said I should have used 2 comps that they knew nothing about. 1 comp involved a home which had been extensively remodeled and involved a real estate exchange. The sale price of public record was $350k which excluded the value of the buyer's home which was given to the seller. Total value of sales transaction reported in the local MLS was $500k. So this comp would have actually supported my opinion of value if it had been used, not discredited it.

The other comp they said should have been used was a old home which was purchased in "as is" condition. The buyers are currently modernizing and remodeling this home and will drop at least a couple hundred thousand in it.

Lastly, the reviewer cited that that the range of value from www.Realtor.com indicated a lower range of value. OK, so appraising has now been made so easy a monkey can do it. All they need to do is go to Realtor.com, Ziao, etc., and they can find out what anyone's home is worth. The appraiser is obsolete.

In summary, the reviewer had no knowledge of the local market, was not a member of the local MLS, and relied on inferior and inaccurate information to try to discredit my opinion of value. Needless to say It made me pretty hot having to reply to this knucklehead's objections.

 

[xmrdfghap]

I'm not crazy about appraisers reviewing other appraisers work. More often than not, the reason the lender orders a review appraisal is because they question the value, and the review appraiser is aware of this.

One of my review clients reviews every appraisal. Not because they think every appraisal is bad, but they have no way of telling which is bad and which isn't. The problem is telling which is which. A lender who buys subprime and alt-a paper had better have a competent review done or they will go the way of New Century.

To me its appraising your competition and who can't find something you don't agree with a competitor's appraisal if you look hard and long enough. It seems like the reviewer is either too busy to disagree and just lets it fly or just wants to make the other appraiser look bad and try to defend their work.

Granted. There are reviewers who use the opportunity to trash their competition. That is what rebuttals are for. Acutally I like it when a reviewer trashes me on a report. I can show paired sales, census economic demographics, local sales, historical trends.......I do my homework.......and I have yet to end up with a changed value. In fact, I have had lenders come to me after I finish the rebuttal and offer me review work. I love it when a reviewer gives me the opportunity to make him look bad.

What ever happened to picking up the phone and calling the appraiser to ask some questions?

Because they don't know what to ask for?

Like the example in the original post, some brilliant review appraiser questioned a recertification of value for an appraisal I completed about 6 months ago.............the reviewer had no knowledge of the local market, was not a member of the local MLS, and relied on inferior and inaccurate information to try to discredit my opinion of value.

This is one of the problems.....the accountants want it cheap, the UW wants it fast, and the market wants it guaranteed.

Needless to say It made me pretty hot having to reply to this knucklehead's objections.

Absolutely the wrong way to respond. As in any fight, the first one to lose their temper loses the fight. Be concise, be factual, be helpful. Let the facts show a moron for what he is. Always try to visit with the head of their QC or appraisal department. See if they need GOOD help in your area......I have gotten a lot of work by saying "You know, if you had called me first, this thing would have closed by now. What else do you have on the boards that you need help with?"

 

[Tater Salad]

Terrel, how did you stumble onto that review? Will you be able to point out the errors to the client, or is this not your client?

 

[lmichels]

I would like to see a new standard - all reviewers must also be qualified as supervisors. I review a competitors work the same way I review a trainees work, except the trainees get more of a lecture. The competitor just gets a quote of USPAP and if relevant Fannie Mae guidelines.

I have noticed that some other reviewers do take the oportunity to try to eliminate their competition. I have plenty of business without using unfair means to target other appraisers. If they violated USPAP or (if relevant) Fannie Mae, or committed fraud - they're toast. If I have a different opinion about how to report remodelling, or there's a few typos, I let it slide. I challenge anyone in this forum to provide an appraisal report complete for a client (not a demonstration report) 100% free of typos, math errors, smudges, and other minor imperfections.

 

[Mike Kennedy]

2000 field review by out of town appraiser of local appraiser. If you disagree with the value aren't you supposed to check off whether you inspected it or did a 'complete visual inspection'...no check off.

Reviewer regrids the SA. $1,000 for a carport adjusment. $500 for ¼ bath...$1000 for a pellet stove...

Finds address on house and address on one comp don't agree with the report...duh, the town changed address numbers recently to make 911 happy. Lots of houses are wrongly addressed because the owners haven't changed their numbers. The orig. report reports the correct number. (I don't know if they mentioned there were descrepencies).

Claims the high range for neighborhood value is $750,000....there is one dwelling with a commercial shop sold by a contractor on 40 acres 8 miles out of town - not a neighborhood range I would consider. It is not relevant to the fact few properties in town have sold as high as $200,000...but they use $45,000 as the low end...ok, there are quite a few selling for less. Why not pick out the cheapest sale if you are going to pick an outlier value on the top end? Also, relies first upon MLS age and then on Assessor age to diss the original appraisers work...reviewer uses 30 - 50 years as age range for all comps....ok - all the houses are pre-WWII but were remodeled sometime in the past 20 years. What is the age? really. Its just a guess.

I really wonder if the client learned anything useful from this review. I don't know how.

Doesn't really matter to them (unfortunately) - they were looking for the Ol Rubber Stamp. h34r:

 

[Otis Key]

I would like to see a new standard - all reviewers must also be qualified as supervisors. I review a competitors work the same way I review a trainees work, except the trainees get more of a lecture. The competitor just gets a quote of USPAP and if relevant Fannie Mae guidelines.

I don't agree. What good would it do to have a reviewer qualified as a supervisor? I do agree with the last statement of the above paragraph, but being qualified as a supervisor doesn't, IMHO, qualify you someone who can review. Maybe the other way around, but I doubt it. A good reviewer will verify the information utilized in the original appraisal, analyze it and then arrive at a decision about the crebible and supportable (I know that's going to draw some fire) opinion of market value.

I have noticed that some other reviewers do take the oportunity to try to eliminate their competition. I have plenty of business without using unfair means to target other appraisers. If they violated USPAP or (if relevant) Fannie Mae, or committed fraud - they're toast. If I have a different opinion about how to report remodelling, or there's a few typos, I let it slide. I challenge anyone in this forum to provide an appraisal report complete for a client (not a demonstration report) 100% free of typos, math errors, smudges, and other minor imperfections.

I don't worry about typos in a report. I'm more concerned with the credibility and honesty of the information presented, along with the supportability of the analysis to arrive at that final opinion of market value as presented. There are some, as you stated, that are out to get everyone. Sad.

 

[Mr Rex]

Seems a common thread here lately, folks doing reviews that are beyond their expertise etc. Given the 08 changes, maybe its time for the rank and file to ask for further standards and "sub" designations. Do a review, gotta have the merit badge, that requires 40 hours or so of classroom time and a exit exam(just a random number, maybe more, probably not less). Same with ERC, Historic properties, etc. any specialty beyond the run of the mill cookie cutter. It would quickly eliminate some of the Skippies since they hate CE and can't pass the test in many cases. Would add relevance back to the AI and other organizations that have seemingly left residential folks by the side of the road. Just thinking aloud, while the bus is empty.

 

[Mister Ed]

A good reviewer will verify the information utilized in the original appraisal, analyze it and then arrive at a decision about the crebible and supportable (I know that's going to draw some fire) opinion of market value.

Since you have looked over a few of my reviews as a "technical advisor" when I was still in Florida, I will: :new_2gunsfiring_v1: :new_snipersmilie:

Seriously, I agree with reviewing the appraisal and NOT the appraiser. As GP posted...

Be concise, be factual, be helpful. Let the facts show a moron for what he is.

 

[Kevin Mc]

Waste of time.

Granted. There are reviewers who use the opportunity to trash their competition. That is what rebuttals are for. Actually I like it when a reviewer trashes me on a report. I can show paired sales, census economic demographics, local sales, historical trends.......I do my homework.......and I have yet to end up with a changed value. In fact, I have had lenders come to me after I finish the rebuttal and offer me review work. I love it when a reviewer gives me the opportunity to make him look bad.

Herein lies the problem. I have no problem with rebutting reviews but the typical reviewer (in my neck of the woods) is often on the bottom of the food chain(thanks to AMCs bottom feeding for the most desperate to make money). I recently had a review done by a trainee on a property in excess of 2 million $$$ who was obviously geographically incompetent. I had to waste a hour rebutting every idiot point brought up in the review and school everyone involved. Had the lender actually spent a few $$$ to hire a competent appraiser both their time and my time wouldn't be wasted on nonsense. I use to do a fair amount of reviews when lenders were willing to pay for my time, now they just want a sheet filled out by the lowest bidder and throw it back in the lap of the original appraiser to clarify every point of minutia. I no longer do them unless it is for a primary client.