Reviewing two appraisals on the same property

[J Grant]

Thanks for all the replies, the client is one of the parties in the divorce and her attorney. I have told her I could provide two separate reviews on the 2000 form and a cover letter, or perhaps use another form that combines reviewing both reports together. The SOW does not include a OOV from me, just a review of the appropriateness/reasonableness of the two reports.

The 2000 form asks if reviewer appraiser finds the MV "accurate and then from there if appraiser disagrees with value provide alt comps or adjustments- so cut off that part or just do a narrative instead...the 200 form also references lender/client at top, so you'd need to cut and paste to edit that out too. Below #10 from 2000 form.

10. Is the opinion of market value in the appraisal report under review accurate as of the effective date of the appraisal report? Yes No If No, complete Section II. e

Asking an opinion of appropriateness /reasonableness of the 2 reports sounds vague, what does that mean ? How can you state a report considered reasonable without dealing with the value opinion? If you agree a value is reasonable, that is a benchmark opinion of value on your part ( an appraisal ). Unless they just want only a housekeeping/error check done, I don't see how , whether the format is narrative or form, or a combination you can avoid dealing with the value opinion yet declare an appraisal reasonable or not or less or more reasonable ( what benchmark is then used for reasonable if value is not discussed?)

 

[glenn walker]

In my opinion asking an opinion of appropriateness /reasonableness moves the review out of a standard review form like a Fannie Mae 2000 because after answering questions 1 through 9 the appraiser finally gets to #10 which asks him/her ( Is the opinion of market value in the appraisal report under review accurate as of the effective date of the appraisal report ? ( YES or NO ) The form 2000 is a Field Review and rarely does anyone order one unless there are both quality issues and value issues. Once the appraiser checks the BOX-10 as YES then he/she has declared they have no difference of opinion on value. The problem is if a report is not appropriate and reasonable it would be rare the value was adequately supported. Even a typical desk review without an-opinion of value requires the reviewer to go through a list of questions and if the appraiser concludes the value is NOT adequately supported or of poor quality he/she will state the reason and it will be elevated to a Field Review or a new appraisal to be completed by a different appraiser. The hidden time bomb for the reviewer is for him/her to be lead down a road where the client is creating the scope of work. Attorneys love to use Exculpatory Clauses or Language which may relieve them of one party liability but that won't work for the appraiser or reviewer because he/she is certifying that a credible report or review was completed. Also when dealing with Attorneys they have wide latitude and certify nothing and therefore any request they can get accomplished to help their case is fair game. Asking if something is appropriate or reasonable in my opinion may be a leading question. The Attorney has no liability, also when is the last time I encountered an-attorney who cared about quality but not value , further more when is the last time any person in the public cared about Appropriate or Reasonable, 99% of people just want a value they want or need.

Example: What if he reviewer stated the lower value appraisal was the better one ? Sure the attorney and the angry husband or wife are going to be all over that like white on rice. Anyway like me Uncle Billy is cynical and suspicious of attorneys except his because they will never fall on a sword for an-appraiser, and he says never act as a dual agent when you have your brokers hat on and never act as a dual reviewer when you have two people getting a divorce.

As adjectives the difference between appropriate and reasonable
is that appropriate is (obsolete) set apart for a particular use or person; reserved while reasonable is having the faculty of reason; endued with reason; rational.

 

[Tom D]

with all the free avm appraisals out there, i would recommend them to the attorney. and i would sit this one out. every divorce, one high, one low. but the attorney's client must not be happy with their own appraisal. ding, ding, hit the happy number or go directly to state board. nothing wrong with your review. just enough little mistakes to get fined. divorces can go on for years cause 1 partner is soo very angry.

 

[pbidwell]

An old adage to live by in appraising... "Sometimes you make more on the ones you pass on, then then the appraisal assignments you accept."