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Robert Bruss--Part II

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Julio E. Sune Jr. (FL)

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Florida
www.inman.com

Robert Bruss has a section there.......

I think it will be a good place to send responses regarding the fatuous comment made in his "Real Estate Pormanteau", referenced in an earlier post.

:evil:
 
Dear Editor,

I've recently become aware of Mr. Bruss' printed suggestion to one of his readers to "have a frank conversation about the appraiser's opinion of your home's market value. If you don't like the answer, don't pay the appraiser."

I cannot communicate how offending and demoralizing comments like this are to the appraising community. But hey--it's trendy! We're a disorganized bunch & easy targets, and it seems like nowadays everybody's jumping on the appraiser bashing bandwagon.

Lenders say appraisers always hit the magic number. Real Estate Agents claim to know more about value and market trends than the value experts, and borrower's have a problem with someone who makes X amount of dollars for an hours worth of work. Lets not forget the ever handy; the appraiser doesn't know the market area comment (only to be used when the experts value determination is below what the Lender, Real Estate Agent or Borrower need to "make it work").

From where we sit; the Lender uses as many appraisers as it takes to get their number, not paying the ones who won't play ball, and appraisers are too often in the unenviable position of coming between a real estate agent and a fat commission check. Pardon me all over the place, but when appraiser's go unpaid for refusing to hit someone's predetermined value estimate, I'd demand cash, certified check or money order too.

Be original--the next time you or one of your readers feels that overwhelming urge to pound an appraiser for costing you that tropical vacation--consider the following; for the good of the public--appraisers must be allowed to perform their assignments ethically with impartiality, objectivity and independence. Suggesting someone hold an appraiser hostage by "not paying them if they don't like the answer" is reckless, and a danger to our economy. I'd rather see you and your readers sign the appraiser's petition--@ www.appraisersforum.com--"for fair and impartial treatment and responsible representation and enforcement of the law," be part of the solution, not part of the problem!

Respectfully,

Mike Simpson
Appraiser/Real Estate Agent
 
Sure hope each & every Appraiser on here has sent at least one E Mail on this subject & congradulations to those that invited him to come to the Appraiser's Forum. This could be another test to see if the Forum has any clout. & We should post this on ALL Association Web Sites Including AI. Copy has been sent to my Senators, CongressPERSONS, asking if they approve of this Idea.
 
Unfortunately, his criticism is well founded on the fact a goodly proportion of appraisals are simply bad...not necessarily deliberately so. I am amazed at the number of appraisals I get with poor analysis. Sample?

Borrower criticized my $166,000 saying the appraiser last year (a recent CR) had appraised it for $210,000. I got a copy of the report. Subject 6 acres, 2200 SF ranch, and 17 yr. old. All comps were less than 5 years old. Sale 2 had a 25 acre site worth twice what the subject was, not to mention it was colonial style. Zero adjustment for the land. The most modest of adjustments would have dropped the indicated value to within dollars of mine. One comp, which was out of the county, also had a different land value. NONE of the comps were adjusted for age, the obvious needed adjustment.

The appraiser did this, in my opinon, not out of deliberate effort to inflate but laziness to find better comps AND having selected inappropriate comps was unwilling to make adjustment that would exceed those Fannie Mae expects you to make. Looks good on the surface....but the buying of an older home vs a 2 or 3 yr. old home requires an adjustment, period.

So why should Bruss not have come to the conclusion that appraisals, as such, are so unreliable that it isn't worth the money it costs? There is a grain of truth there. And I would suggest a lot of buyers/sellers would agree after having two appraisals that are miles apart in value indication.
 
I think you are too generous to the appraiser you mentioned. Such blatant errors as you have mentioned would indicate a need to make value. IMHO, this is the kind of appraiser that Bruss loves...one that makes the numbers work. You don't get this kind of error by just being lazy. Even a lazy appraiser would make large acreage adustments. No, this guy's a number hitter.

Roger
 
I base that on the fact that the loan was in house with a LTV ratio of less than 50%. There is no reason to hit a number and I know he has no pressure from the lenders, at least in 10 years this bank has never asked me to make it work, in fact, they prefer conservative appraisals.
 
Terrel,

I still would guess that that was a number hitter. Likely the only way that new CR had been taught to find comps was if (s)he had a number to hit and probably asked the HO what he wanted.

I know..... I'm cynical. Here I sit doing what I consider necessary due diligence and pumping out 1/2 to 1/4 of what a number hitter will as far as the number of completed appraisals.

Licensing and looking at 'what is the minimum I need to do' - lack of enforcement, LENDER AND REALTOR PRESSURE, etc. I have no problem with stating there are unethical appraisers out there. I have a major problem with someone that portrays himself as a 'Real Estate Expert' giving the general public information that is advising them to ask an appraiser to do something that is illegal!!!

Plus, I'm getting a little tired of having a few COD appointments that stand me up or bounce a check. It doesn't happen very often, but going to cash, money order or certified funds is something I've been thinking of doing for some of these.

The system is screwed up.... Bruss is making it worse!
 
His remarks are made to "sell newspapers". He has accomplished his objective, ie: get we appraisers antagonized and make all kinds of comments. His editor loves it, i'm certain. Let's face it, he's a bag of crap but we all read him and that's the objective of his columns.
 
Dick,

Unfortunately, you are probably right on the mark with your observation.

At what point do we as a society quit accepting this 'It sells' crap, and be concerned with the content? This is in reference to folk's typically largest investment - thier home. Shouldn't accuracy and legality be a consideration over paper sales???

At the very least, there should be a large disclaimer to the fact that Robert Bruss is not a real estate attorney, tax attorney, appraiser, etc. and all advice should be wieghed against the reader's applicable state and federal laws.
 
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