Reviewing an Appraisal of a Property I Have Already Recently Appraised

[Functional Obs]

I appraised the subject in March for a divorce client. Since then, another appraiser appraised the same property. Last night my client sent me a copy. It's bad (like really bad).

The other appraisal doesn't contain a definition or source for "market value." It doesn't identify the client of the report or any intended users. It's on an old Fannie form but without any added certifications or limiting conditions. There's no scope of work. The description of the site is inadequate (no zoning analysis, highest and best use as vacant analysis, lot shape description, or anything at all to distinguish unique features of the lot). The appraisal (due to its boilerplate) contradicts itself in at least 3 places (concerning exposure time, the cost approach, and external obsolescence). The addendum references the old MLS (M.R.I.S., which is now gone) and the 2002 version of USPAP, which tells me that the appraiser hasn't bothered to update his addendum in 20 years. Comp 3 is an active listing, not a closed sale, and there are hundreds of recent sales in the market area. The sketch contains no measurements at all, and the size is off by nearly three hundred sf. Style-wise, it's horrendous (ALL CAPS, no articles, all in the passive voice, and clearly not spell-checked).

What are the reasons I should NOT perform a full review of the other appraisal?

 

[J Grant]

Did your client ask you to review it / pay you to review it?

Why did they send it to you, what do they expect you to do with it? If they just sent it for you to look at, or get an opinion on it, you can tell them you see some issues with it. But unless I was engaged by a client to review it, I would not do so.

 

[KHS445]

Be careful that you do not cross the line between appraiser and advocate. Having already prepared an appraisal on the subject property, I believe it would be difficult to ethically become an advocate. If you do complete a review, make sure you disclose your prior work regarding the subject property. Nothing worse than to point out mistakes in the appraisal being reviewed and making them yourself.

 

[J Grant]

I appraised the subject in March for a divorce client. Since then, another appraiser appraised the same property. Last night my client sent me a copy. It's bad (like really bad).

The other appraisal doesn't contain a definition or source for "market value." It doesn't identify the client of the report or any intended users. It's on an old Fannie form but without any added certifications or limiting conditions. There's no scope of work. The description of the site is inadequate (no zoning analysis, highest and best use as vacant analysis, lot shape description, or anything at all to distinguish unique features of the lot). The appraisal (due to its boilerplate) contradicts itself in at least 3 places (concerning exposure time, the cost approach, and external obsolescence). The addendum references the old MLS (M.R.I.S., which is now gone) and the 2002 version of USPAP, which tells me that the appraiser hasn't bothered to update his addendum in 20 years. Comp 3 is an active listing, not a closed sale, and there are hundreds of recent sales in the market area. The sketch contains no measurements at all, and the size is off by nearly three hundred sf. Style-wise, it's horrendous (ALL CAPS, no articles, all in the passive voice, and clearly not spell-checked).

What are the reasons I should NOT perform a full review of the other appraisal?

Because the other appraiser or another attorney could sue you or dismiss using your appraisal from the case due to bias on your part or conflict of interest. ( real or perceived)
Besides the other fact that you have not been engaged to review it?

If the client asks you to review it, IMO decline and tell them they are better off engaging another appraiser for that.

 

[Raven59]

You haven't really stated anything that affects the value opinion. It is likely not well-developed/reported and may not meet USPAP requirements, but it's a divorce case and the judge probably could care less. As advised, you cannot advocate in this scenario.

 

[Functional Obs]

Did your client ask you to review it / pay you to review it?

Why did they send it to you, what do they expect you to do with it? If they just sent it for you to look at, or get an opinion on it, you can tell them you see some issues with it. But unless I was engaged by a client to review it, I would not do so.

They asked, "What do you think?" which opens it up to a potential review. They will pay whatever fee I ask them, but I haven't decided to review it yet. I merely noticed a heap of compliance issues. The value and its support may yet be spot on. It's newer, which mea

You haven't really stated anything that affects the value opinion. It is likely not well-developed/reported and may not meet USPAP requirements, but it's a divorce case and the judge probably could care less. As advised, you cannot advocate in this scenario.

It's a newer report. The value and/or its support may be spot on--I don't know. I would need to dive into my process all over again and see what's been going on in the neighborhood since March. I'm inclined to review it for compliance, and if my client wants an updated value, then to just do a new appraisal.

 

[J Grant]

They asked, "What do you think?" which opens it up to a potential review. They will pay whatever fee I ask them, but I haven't decided to review it yet. I merely noticed a heap of compliance issues. The value and its support may yet be spot on. It's newer, which mea


It's a newer report. The value and/or its support may be spot on--I don't know. I would need to dive into my process all over again and see what's been going on in the neighborhood since March. I'm inclined to review it for compliance, and if my client wants an updated value, then to just do a new appraisal.

They ask you what you think, tell them you see some issues, and leave it at that. Don't get sucked into giving a free oral review over the phone. or in an email

Even if they offer you a review assignment, don't be greedy or naive, turn it down. The other side can ask the judge to dismiss your appraisal from the case if you do that, or they can turn around and have YOUR appraisal reviews and find some error in it.

I would not even review it for compliance - it still opens up problems for you. Eagerness to show what a better appraiser you are - has a risk. Recall the saying anything you say or do will be held against you- This is just opening up a door for possible trouble.

 

[Mark K]

If it goes to court the judge, in all likelihood, won't care about USPAP issues or even the other errors. His concern is "is the appraised value credible", not how he got there.

If the value is reasonable, tell your client about the errors in the report but that you agree/mostly agree with the final number. Let the lawyer take it from there. OTOH, if they want you to do a full review and are willing to pay you I see no reason not to do it. I've done it several times. When you get down to it, the legal system for civil courts is all a big game and lawyers love running up billable hours and spending their client's money.

Review it in a professional, objective manner and let the lawyer skewer the other appraiser on the stand. When the case is concluded, turn the other report into the state.

 

[ucbruin]

"Review it in a professional, objective manner and let the lawyer skewer the other appraiser on the stand. When the case is concluded, turn the other report into the state."

What a way to create an "unforced error" for oneself....
Has Terrel's tales of his experience being sued not seemed like a relatable cautionary tale....

 

[TerryRohrer]

"Review it in a professional, objective manner and let the lawyer skewer the other appraiser on the stand. When the case is concluded, turn the other report into the state."

What a way to create an "unforced error" for oneself....
Has Terrel's tales of his experience being sued not seemed like a relatable cautionary tale....

Terrell was sued over his report by a party grasping for straws to cover their own failures. If that case is a deterrent, no one should complete an appraisal. Apples and oranges in this discussion, I think.