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Reviewer Called Today

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Alison Swain

Thread Starter
Senior Member
Joined
Sep 13, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Very rude and agressive guy calls from Big Bank in CA to consult with me on an appraisal I turned in 7 weeks ago. He wanted me to know this was simply a "courtesy call" given to allow me an opportunity to explain why I had marked the market as stable when "we all know" the whole Central Florida region is declining. I explained to him that I would be happy to discuss my report with him, but at the moment, I was in the car, not in front of my computer where I could pull up the report. I also explained that the subject was a newly constructed, custom/quality built home on 2+ acres and that its market area was not, in my opinion, in decline. The "market," after all is not a single, monolithic thing, but specific to whatever subject I am valuing at any given time.

Again, he was very agressive in wanting to question me and twice more I reminded him that report had been completed over 6 weeks ago and was not immediately available to me. He repeated that his call was simply made as a "courtesy" (although, I assure you, he was NOT courteous). I guess he was threatening me and just giving me a heads up that he was about to throw me under the bus and just wanted to see if I had any last words. :shrug:

Anyway, I just got home and opened that report back up. It was a difficult assignment, no doubt. But I feel very comfortable with my analysis, my disclosures AND my value.

He commented that I didn't support my opinion that the market is stable or at least, I hadn't commented sufficiently. Here's what I put in the addendum:

Market values of custom built homes on larger acreage parcels appear to have remained relatively stable, although newer production-built homes have shown significant declines in sales prices since the dramatic increases in 2005 and early 2006. Vacant land sales of larger parcels (half-acre to two acres lots) appear to have remained stable and demand is expected to continue at a moderate rate in this area.

Interest rates are favorable and financing is readily available to qualified buyers. The comparables' sales prices were not affected by financing concessions. Average time on the market is approximately three to six months.



So, any advice on what to say/not to say when I call this guy back tomorrow? :shrug:
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Have your file open with your support data, stats, etc. Remind him they ordered a SUMMARY report, but you would be glad to provide a copy of your field notes and support data.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
Alison,
I did a land appraisal for a 'developer' type and she was not
happy with my value. She tried to beat down the market,
thought things were dire, we were practically in a depression.
I simply told her I would have none of it. The market the
property was in didn't exhibit any decline, sure there was
more on the market, but prices not only were maintaining
themselves, they actually showed some increase. Eventually
she figure out I was a lost cause for her purpose of getting
a lower value and went away.

You might tell Mr. Declining about some listings or look at
the most recent sales in the market of your subject and
look at SP/SF....and then say, I just don't see a decline.
 

Vegan702

Senior Member
Joined
Feb 24, 2005
Professional Status
Certified Residential Appraiser
State
Nevada
You are nicer then I am. I would tell him where to stick his review, especially when he is from CA telling me my market on a unique property across the US in FL. Ask him to send you his work since he is questioning your work.
 

Frederick

Senior Member
Joined
Nov 2, 2005
Professional Status
Certified General Appraiser
State
New Jersey
I compare the two prior periods for the neighborhood and put the change from period to period in "every report" for the following items:

Change in Number of units sold
Change in Average sales price
Change in Days On Market
Current inventory accumulation expressed as number of months for absorption

It makes the case very clear and unarguable. It can be accomplished very quickly via MLS.

Yesterday I had one that I further broke down because the entire market within the neighborhood was stable however the properties within a specific value range and age were in significant oversupply and declining.

I think in the current climate putting the data right into the report is adviseable so the client can fully understand the extent of the situation described. They are making lending decisions not only based on market change but also on the apparent rate of change. In the past declining and oversupply was a deal killer, now the rate of change causes them to make different decisions so it is relevant to include that information.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Strongly recommend all Reviewer requests for info be sent IN WRITING via email and retained, along with the response, in the work file.

Avoid "he said / she said" - document everything.
 

Chris Colston

Elite Member
Joined
Jul 24, 2003
Professional Status
Certified Residential Appraiser
State
Florida
What Mike said! Any requests to discuss, correct, detail, etc made after delivery of the original report MUST be made in writing. You have no idea who the person on the other end of phone really is.

Alison, make sure you have vacant land sales and land listings in your work file as well as current listings of improved sites.

This declining thing is part of the new check list and these guys are looking for anything they can find to justify cutting the appraiser's value opinion. I don't think it would have mattered if you had sales that were exact matches, on either side of the subject and across the street, that closed for cash, yesterday, they would still be looking to cut the value.

It's a weird world we are living in. Just a year ago we were being begged to increase, increase, increase anywhere we could. NOW, we're being told we're too high in value and have to cut, cut, cut. m2:
 

Wendy

Senior Member
Joined
Feb 23, 2004
Professional Status
Certified Residential Appraiser
State
Florida
Ditto Chris.

What a wacky world. In the beginning of the year we got howled at for marking declining. Now we get the 3rd degree for marking stable.

You really can't win!
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Wendy,

Its all about control, nothing else. Sever(sp) there control and things will get better for everyone except the lending community.

NOTE: Confidentiality Rule requires you to get communications in writing so as to properly identify who you are communicating with!!
 
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