Review Rebuttal

[Dwayne Drummond]

I completed an assignment several months ago. Recieved full fee from owner.
Nice property close to county line. Manufactured home of superior quality, Barn of superior size and quality, etc. Cost approach has property in high $300's. Conservative adjusted sales comparison range is $275 - $325, Actual sales range $240 - $300. In my opinion subject is superior to all sales. All comparables are in same county as subject, although inferior sales are avaliable in neighboring county, closer to subject. Very little market value to support any opinion of value in the area, much less this superior property, so I bring subject in at $300, trying to be conservative while still stating subject is a superior property..
Report is now updated and sent to new lender after recieving appropriate fee.
New lender is not "Regular" a client of mine, i.e. never recieved an order from "Big" lender. Report is sent to review, and reviewer's opinion is $240, never setting foot on property. I recieve phone call from originator and lender asking me to rebutt reviewrs opinion. This will take a while and at first I want to argue. Now the question, is it worth the effort for a lender that does not routinely use your services? I have not been offered any reward for my efforts. Or is it a matter of pride to try and defend your value? Remember there is limited market data to support any opinion.

 

[Tony Lehn]

If it is Flagstar, I would not even bother. There are countless appraisers on this board who have been blacklisted by them for similiar situations. Even after showing that the "review" was worse than they say the original report was. In fact, my report was a manufactured home, similiar to what you are talking about.

If it is not Flagstar, I would suggest doing the rebuttal using only facts, not arguments or personal attacks. The last thing you want is to be put onto a blacklist. It will change your career and potentially start the end of your career as a residential appraiser.

 

[PropertyEconomics]

I completed an assignment several months ago. Recieved full fee from owner.
Nice property close to county line. Manufactured home of superior quality, Barn of superior size and quality, etc. Cost approach has property in high $300's. Conservative adjusted sales comparison range is $275 - $325, Actual sales range $240 - $300. In my opinion subject is superior to all sales. All comparables are in same county as subject, although inferior sales are avaliable in neighboring county, closer to subject. Very little market value to support any opinion of value in the area, much less this superior property, so I bring subject in at $300, trying to be conservative while still stating subject is a superior property..
Report is now updated and sent to new lender after recieving appropriate fee.
New lender is not "Regular" a client of mine, i.e. never recieved an order from "Big" lender. Report is sent to review, and reviewer's opinion is $240, never setting foot on property. I recieve phone call from originator and lender asking me to rebutt reviewrs opinion. This will take a while and at first I want to argue. Now the question, is it worth the effort for a lender that does not routinely use your services? I have not been offered any reward for my efforts. Or is it a matter of pride to try and defend your value? Remember there is limited market data to support any opinion.

I would ask for a copy of the review, offer a rebuttal to the issues, and be quite professional and polite about it. While they may not be a regular client they should be afforded the same treatement as your best client. It is all about being professional .... and I would certainly tell them you were charging them for the service.

 

[Mike Boyd]

A good rebuttal is an art form. First you must readily admit to any mistakes you may have made.....apologize for them and make corrections. Then, you have to, very subtely, destroy the credibility of the review. You must demonstrate that you know more than the reviewer does. DEMONSTRATE, not say it. Go through the review item by item countering every statement made that is not correct with facts that, whoever reads it, cannot deny. Show your reasoning....not your opinion. End it by writing that your original report fully supports the final value you found and recommend that the value you found be reinstated as the true value. (substitute the actual dollar amount for The Value.) And, whether they are regular clients or not, you must rebut the review if you are positive you are right.

 

[Michael Tipton]

Was this a desk review by an appraiser with local market knowledge and access to local data sources? Before I would respond to any review I would have to be provided with a complete copy of the review.

Secondly, last year in one of the FREAB newletters, it was strongly suggested that a complaint be filed against any and all reviewers that lacked geo competencey when the reviewer included a value conclusion in "their" review.

 

[Fred]

I recieve phone call from originator and lender asking me to rebutt reviewrs opinion. This will take a while

I take it you plan to provide this service for free?

 

[Kevin Mc]

Report is sent to review, and reviewer's opinion is $240, never setting foot on property.

my bold


I have major issues with these types of reviews. Was the reviewer Geo-competent? Was the reviewer even an appraiser? The reviewer's opinion is actually an appraisal. Make sure it is USPAP compliant. 95 times out of 100 I find these enhanced products step all over it.

 

[Dwayne Drummond]

I can tell you the reviewer has an address east of Orlando, subject is northwest of Ocala. In this market, and these trying times, I am leary of saying too much about anything least it backfire on me. It seems the reviewer is trying to accuse me of cherry picking to hit a number. Hard to get that to stick when I come in below cost and in the range of actual sales and midrange of the adjusted, I would say. The market is in decline, but 60% of cost using current land and construction data? Not so sure about that. I did recieve a copy of the review, I don't see an appropriate form in my click forms for rebuttal, do it simple narrative? Here again, I try and be conservative while doing the subject justice and get the feeling the reviewer is accusing me of inflating value.

 

[Kevin Mc]

I can tell you the reviewer has an address east of Orlando, subject is northwest of Ocala.

??? I know where both of those locations are but wouldn't know if one could service both areas competently. If the answer is no, I would offer that opinion in a short and simple rebuttal. If one wants me to seriously address a value issue by way of review, it had better be a field review.

 

[Michael Tipton]

I can tell you the reviewer has an address east of Orlando, subject is northwest of Ocala. In this market, and these trying times, I am leary of saying too much about anything least it backfire on me. It seems the reviewer is trying to accuse me of cherry picking to hit a number. Hard to get that to stick when I come in below cost and in the range of actual sales and midrange of the adjusted, I would say. The market is in decline, but 60% of cost using current land and construction data? Not so sure about that. I did recieve a copy of the review, I don't see an appropriate form in my click forms for rebuttal, do it simple narrative? Here again, I try and be conservative while doing the subject justice and get the feeling the reviewer is accusing me of inflating value.

A rebuttal letter is appropriate.