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Right Or Wrong

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jtrotta

Senior Member
Joined
Jan 16, 2002
Did an appraisal on a new construction a few years back and for sake of argument will say it came in around $600k; lady decides to re-fi a couple of years ago with a local Bank, they use one of their "staff infected appraiser's" and low & behold it comes in at the same value ;), a few years later :huh: - no equity gain :lol: - the market died right in her back yard :unsure:

here's the Question- could this be considerd "Fraud" per USPAP :rolleyes: could this be a violation of the "Ethics Provision" - what say ye :question:

A little diddy - the immediate neighborhood, back when I did the original job, ranged from $550k to $900k back then, mostly all new construction.

:ph34r:
 

Darrell Hignite

Sophomore Member
Joined
Jul 16, 2003
Professional Status
Certified Residential Appraiser
State
North Carolina
This seems peculiar to me. No gain in that much time. Of course if the staff appraiser works for the bank and he's not licensed or certified. I want more information.

Is he licensed and certified?

Did you see the appraisal?

Do you have a copy? (I doubt that)

Can you prove that the home is worth more?

Thanks for answering the questions! :D
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Depends. Some areas due to loss of stock market the high end ($600K+)has suffered and is only worth what it was several years ago. Have you reviewed the new appraisal. Perhaps the HO totally trashed the house in those few years it happens. Perhaps that segment of the market took a nose dive. Without knowing the market it is hard to say.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Darrell

1)-violation of State Law (my state) ifn he ain't Certified (Fraud /misrepresentation)

2) - Naa, I won't Peek :blink: and ifn I do, I might have ta report the fool

3) :rofl: - see above

4) I think that would be a job order; ifn I crawled under a rock four-six years ago and woke up today, I would be as thoroughly amazed at the value of my home today, as I am today :mrgreen:

hopein that provides ya enough amo :beer:

:ph34r:
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Just because the value today is the same as several years ago doesn't mean that he's wrong. I can show paired sales where properties are back to 1999 levels and still dropping in some areas. Equity loans? There ain't gonna be any equity at this rate.

Roger
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Just today, 2002 appraisal for mortgage company. Staff appraiser-$480,000. Re-ordered through local number hitter-$575,000. Fast forward to this year, new appraisal from staff appraiser at wholesale mortgage company that bought the loan-$425,000. Now, they want me to appraise for a second opinion that will determine just who is wrong in this triangle. I call the local mortgage company appraiser to get the skinny, since it seems he was familiar with the property. The borrower (a doctor) re-fi's every year and has already contacted them to get a another $575,000 appraisal. He said no way, call the SOB that said it was worth that much last time. Wanna bet he goes back to the original company gets his $575,000 appraisal and it gets sold to the same wholesale company a second time! Oh, he will not return my calls for a new appraisal because he is fishing for his value at the old company.


The mortgage business is indeed a slimy business at times. I would bet dollars to donuts that he gets this years $575,000 re-fi and it ends up sending payments to the same mortgage company that says his home is only worth $425,000 now in two months.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
Just checked through 17 law books and I cannot find a single law that says it is against the law for the value of a house to remain the same. I cannot even find one that says the value of a house has to go up like so many people believe.

Strange, where do people get the idea that real estate values always have to increase and they don't, the appraiser obviously did something wrong?
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
Richard,

You are not looking in the right books. I found it right here in the "Make Much Wampum, A guide to Pricing homes for Real Estate Agents" It says, and I quote: " It does not matter when the last time the home sold. It will always increase by 6% to cover your commision."
 

Travis McGee

Senior Member
Joined
Sep 18, 2004
I do not believe the first or second appraiser is wrong or wright. Here in GA I have seen high end sales stabilize with very little appreciation. Maybe not within the last 2-months but it happens and maybe you would like to be correct in your unsupported therory and maybe you are correct. The point is without data to support your theory, maybe just maybe you should not bad mouth the other guy (staff appraiser). It is not your fault if the home @ $600k did not appreciate the market bears the answer.
 
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