Reviewing an Appraisal of a Property I Have Already Recently Appraised

[Terrel L. Shields]

all this being said you never mention the most important thing in a divorce trial. were the values way off knowing who wants it high or low.

I know someone who lost her license over a divorce appraisal. The other side filed against her AND her own appraisers (2 co-appraised it)... one of those got a sanction... the other died before he was to appear before the board so left earth with a "clean" record.

 

[Tom D]

if i'm in a divorce trial the only thing i care about is the value. then the unhappy party will state file a complaint. i thought it was a 2 part question with most refering to state issues, not judge issues. there are bad professionals in every field.

 

[TJSum]

most attornies want your free advice on what they should bring up. the GLA mistake would alone make the judge concerned. these are factual errors that would affect value, or concern that this appraiser is not compotent. the rest of it is beyound the thinking of the judge.

however, it is these tech things the state will punish you for. you don't have to sign the letter pointing out these issues. bad eventually gets caught and suspended. you can just speed it up.

all this being said you never mention the most important thing in a divorce trial. were the values way off knowing who wants it high or low. most of your picky review comments aren't important in a civilian trial, USPAP has no home there.

I agree with Tom D's posts, I've reviewed reports in the past where it seems everything in the report was wrong except for the value conclusion. Leaves one wondering how they ever got close to the true value, but they did. No one really gives a sh*t about it except other appraisers, Civilians could care less as long as the result is credible. Save the torches and pitchforks for true fraud when you see it in a review.

 

[KYgirl]

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?

My supervisor, always took whatever order came in. I went line by line. I listed all items that were incorrect, provided three comps, MC, and commits on each comparable I used. Since you have already measured the house you know the size and can certify since you measured it in March. He also charged more for a review because it was more work. I had one that none of the comps was more than $80,000 but the appraisal value was $105,000.

 

[KYgirl]

I agree with Tom D's posts, I've reviewed reports in the past where it seems everything in the report was wrong except for the value conclusion. Leaves one wondering how they ever got close to the true value, but they did. No one really gives a sh*t about it except other appraisers, Civilians could care less as long as the result is credible. Save the torches and pitchforks for true fraud when you see it in a review.

Sometimes they have looked at an older appraisal and they do an estimate!

 

[Terrel L. Shields]

I had one that none of the comps was more than $80,000 but the appraisal value was $105,000.

So, are you saying that everything in the 'market area' tops out at $80,000? Or, in other words, no property is worth more than $80k regardless? Or, are you saying there were sales near $105k that were simply ignored?

Sometimes, we have insufficient data to do much more than take a stab at it. I just finished a land appraisal where the largest and roughest tract brought $7500 an acre (175 acres). A 40 acre parcel the same distance away brought $5,125/acre and had all pasture. Another sale 5 miles away brought $7,200 and was on a paved road also 40 acres and finally another parcel brought $7,000 an acre 3 miles away that was pretty similar to the subject. Finally, 2 parcels sold to the same guy, and he gave $5,000 an acre and it was barely 2 miles away and both parcels were nigh 40 acres but per acre the one with a few acres of woods brought more than the open pasture. But I didn't use these because they were private sales and I couldn't find out if the buyer was related to the seller or something else similar (it was an estate sale.)

 

[KYgirl]

So, are you saying that everything in the 'market area' tops out at $80,000? Or, in other words, no property is worth more than $80k regardless? Or, are you saying there were sales near $105k that were simply ignored?

Sometimes, we have insufficient data to do much more than take a stab at it. I just finished a land appraisal where the largest and roughest tract brought $7500 an acre (175 acres). A 40 acre parcel the same distance away brought $5,125/acre and had all pasture. Another sale 5 miles away brought $7,200 and was on a paved road also 40 acres and finally another parcel brought $7,000 an acre 3 miles away that was pretty similar to the subject. Finally, 2 parcels sold to the same guy, and he gave $5,000 an acre and it was barely 2 miles away and both parcels were nigh 40 acres but per acre the one with a few acres of woods brought more than the open pasture. But I didn't use these because they were private sales and I couldn't find out if the buyer was related to the seller or something else similar (it was an estate sale.)

It was a $80,000 market and they had inflated the value because it was a refi.

 

[Fernando]

"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....

I didn't know Terrel got sued. After that, it' must be hard to get E&O insurance.

 

[Terrel L. Shields]

After that, it' must be hard to get E&O insurance.

Not when you win... The suit was totally baseless. They sued six years after the report which is 3 years after the statute of limitations. They tried to claim that the time should be "tolled" because the report was hidden from them, then they claimed that they 'relied' upon the report. That lie cost them dearly. First off, the report was not prepared until 4 days after the property closed. The seller was behind on his payments, so the bank was happy to transfer the balance to the buyers and forgot to order the report. It was at closing they realized the error and ordered the appraisal. My report actually had the recorded deed to the property in the report. So, no they could not 'rely' upon a report that did not exist, but by claiming they did, the S of L was not tolled, and their claim had expired 3 years earlier.