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"Review" - Vent

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Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
One of the appraisers I work with received a fax from one of our clients today looking for help. Seems the subject of an appraisal she did in July 2002 is being turned down for their refi due to a negative "review" of her appraisal. The client sent us a copy and said they'd reconsider if we could rebut the negative points of the "review".

:mrgreen:

The "review" came in the form of a "Competitive Market Analysis". All of the comp sales they recommended closed two weeks ago (would've been nice if we'd had 'em back in July!). Two of the listings they looked at have been on the market in excess of 500 days (normal for that market is about 65). The third listing was a manufactured home (yup, our subject is site built). All of the square footage figures were in disagreement with three different data sources and four out of six had other errors in property description. A review of the multiple listing service revealed his/her data source. The MLS is usually quite accurate............ :roll:

Anyhow, I pointed out a few of the details and wrote 'em back a nice letter saying we don't mind a review of our work, in fact, we welcome it, but told 'em we were a bit concerned if they were using this "reviewer" to make very many lending decisions.

It's late. I had to vent a tiny bit. All in all, if that's the worst the New Year has to offer, we're off to a good start!

Thanks for listenin'.
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
I hate to say it but, I find in most cases a review is done because the lender just doesn't want to do the loan. Usually for reasons other than the appraisal. I personally know of 2 'hackers' in town that make their reputation on 'hacking up' appraisals. This whole review process is bogus in my opinion. I won't do a review for any less than a full appraisal fee because it takes at least that much work to be fair......
 

Charlotte Dixon

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
Wally....I had that kind of day, also. Vent, Vent, Vent.....I always feel better after I tell you guys my problems with reviewers and underwriters. You're right.....JULY??? And now they're wondering why you didn't use these recent comps?

I had a lender call yesterday and say the appraisal I did was a "sub-prime" loan. Therefore, Fannie Mae guidelines (5 miles to comps) does not apply. Comps have to be a block or so :roll: Then, the lender added....The distance to comps you put on the grid is not realistic (Definition: I'm a liar)...I almost told him to call Geolocator and question them! But, I did an addendum about "as the bird flies" etc, etc. Yeah, not a good day. It's bad when we can't sleep!!!
 
B

Bemis Pownall

Guest
Violation to write a misleading review

turn um in!

:morning:
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
It has just popped into my head that if this happens to me, I'm going to tell them that I will only address a REAL Certified Appraiser's review of MY appraisal for a rebuttal. If they provide that, I will then reply. If they want to hire me to validate AVM, BPO or CMA data, it will be at least $75 - 100 per comp and they will recieve a brief explanation of that comp with a picture - nothing else.


:twisted: :2gunfire:
 

Pine Tree

Junior Member
Joined
Aug 19, 2002
Professional Status
Certified Residential Appraiser
State
Maine
What gives .. a review in the form of a CMA???? there must be marbles all over the floor of thier office that have fallen out of their heads! If an "appraiser" used a CMA form that's a very big problem and is likely not quailifed to review another's work.. Or ( and I don't know which is worse) they got a real estate agent to do a review of an appraiser's work... That's just wrong! I agree with Pamela, I don't respond to this kind of battering!
Good Luck! :evil:
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Blue is right.
They're just trying to kill the deal. Don't waste too much time on this, they've already made up their mind.
 

Claudia Cullen

Sophomore Member
Joined
Dec 18, 2002
Professional Status
Licensed Appraiser
State
Massachusetts
Hi Pam,
My .02 worth is to agree with all posts stating reviews are a waste of our time. I am glad to see that most of you are charging a full fee for reviews!
After doing 5 or 6 reviews I have come to realize what all of you already learned--- that these invariably seem to be the clients way of getting a full appraisal for next to no $$$$.

One of my goals for this year is to find another client or two. I'm subcontracting from an apppraisal firm north of Boston right now and 45% of $150 has begun to annoy me.
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Short of the purpose of a review being a regular obligatory check upon a fraction of the portfolio holdings of a large® financial institution.....I think reviews are a lower-echelon client's attempt to get another appraiser to point a nasty finger......when in reality our review SHOULD actually reveal the abject and total neglect of processor's, loan officers and underwriters in an original loan approval process to perform their jobs with diligence and a small amount of common sense. We get tossed the infamous "last appraisal completed" for a property, and see the glaring and obvious frailties of comp selection, or staying IN the neighborhood, the minimal or cloned text offerings of description of neighborhood, or market or value (price) trends over recent 12 to 18 months, or the actual improvements, and then see a weak explanation for why that report concludes a major increase in value over a short period of time. No wonder the client is scrambling to find fault. The fault always lies with whomever produces the most-recent report !

I was recently asked to "review", hence, explain how it is possible, that a recent report of mine could be (the value) what it was. The intermediary was completely incapable of explaining what it was I was to explain ("review"). To suggest they read my report (for the first time ?) was not a viable option. To ask where in my report they felt uncertain about the data or the logic was a dead end pursuit. This process is what some clients refer to as a "dispute" with one's (my) work. Their real dispute was not with my report. Their dispute was with the intense value discrepancy between mine and the previous appraisal. So, I wrote a narrative about the fuller content of MY work file ! They basically got a description of the data I acquired and specifically excluded, my market value/price trend data, my ability to remain and work with sales and listings in very close proximity to subject and STAY IN THE SAME MARKET, my selections of homes ACTUALLY SIMILAR TO THE SUBJECT and not choose a property with several 1000 sg.ft. larger size and effectively a doubling of the size of subject. My guess is that they will scramble to find another appraiser to also go way outside the neighborhood and to select sold properties which fail the comparability test, and desparately try to get another inflated value near the last one from earlier in 2002. Probably, because they want to serve their borrower and I did not. I guess if the homeowner keeps paying the monthly, then everybody is happy. I was told the h/o was party to the "dispute" so perhaps he already knows how burned the toast is. I am sorry, but the subject did not actually go up in value by 50% over 2 and 1/2 years, and my report with 5 comps and an adjusted range spanning $10K brought their baloon down to earth fast, and they are frustrated, and they are confused, and they have stopped sending me any new work. I had a nice run with them, and of course it did NOT last one year, nor 6 months, o.k. maybe 3 months. Why didn't a little bluebird whisper to me what the other reported value was, beforehand, so that I could have declined that assignment and continued to appraise for them without being the harbinger of bad news.
 
B

Bemis Pownall

Guest
Ross

did you bother to give yur client "heads up" before you submitted it??

:morning:
 
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