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Robert J. Bruss: Part XXIII

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Paul Ness MAI

Member
Joined
Jan 14, 2002
Professional Status
Certified General Appraiser
State
Pennsylvania
Well, he has done it again. A condo owner (also a broker) wrote that an appraiser low-balled his property. A second appraisal was done with $35,000 more value, and Bruss automatically took the position that the first appraisal was bad without presenting a balanced view of all possibilities.

He then put his foot in his mouth by saying that appraisal certification was meant to eliminate incompetent and unethical appraisers! Now that is a real defense of his argument!! Well guess what, the problem that precipitated certification 14 years ago was not undervalued appraisals, but inflated appraisals. His writing continues to exacerbate a very serious problem in the industry, i.e. owner and lender pressure.

I am going to write a reply to him and will post it here when finished. Here is his email address: [email protected]. This guy is really rubbing me the wrong way. He needs to have his email flooded!! :twisted:
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Any way you could post the link to this article? You know I'd like in on telling him what I think of his idiotic articles.
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
I think he does this kinda writing just to get E Mails. I just pointed out to him what we as appraisers already know; only getting one side of a story & publishing a response to it, well in my opinion thats a lot of ASSUME ing.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
IF Paul would kindly can post a link (or source for) the original article, on which he comments, I also will certainly respond...

for anyone that just wants to respond to Mr. Bruss in general :twisted:

go to the ASK BOB site:

http://www.robertbruss.com/questions.html

is stuffing a gys email ethical under circumstances like these?

OH YEAH :twisted: 8)
 

Julio E. Sune Jr. (FL)

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Hello There!!!!

I could no find the aforementioned article---but I found a few more.....
===========================================

Robert Bruss Recent Articles

http://www.latimes.com/classified/realesta.../valuing/la-re-
marketanalysis,0,4906466.story?coll=la-realestate-valuing


http://www.topproducer.com/news/33775.html


http://www.latimes.com/la-re-nopro-appraisal.story


:evil: :evil: :evil:

(I edited this post to make this thread fit better instead of being extended. The first link will need to be copied and pasted, taking out the blank space in the middle after you past it in the address bar. Sorry.)
 

Tim The Enchanter

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Bruss automatically took the position that the first appraisal was bad

Which article do you want? :roll: I've been reading this guys columns for years in the Sunday Times.
I Concluded he has something against appraisers. :twisted: And perhaps his "leavings" don't stink. :lol:

I should probably just kick the habit of reading his column,
but so many of the public read it and think he's a great expert. Expert DumbAx. :x
 

Paul Ness MAI

Member
Joined
Jan 14, 2002
Professional Status
Certified General Appraiser
State
Pennsylvania
Here's my email to Mr. Bruss:

Mr. Bruss,
I am writing to you in response to a recent letter from a condo owner regarding an appraiser that concluded a "lowball" value. The owner said a second appraisal was completed with a value that was $35,000 greater than the first and commensurate with his own idea of value. So which is the more accurate appraisal? We cannot know the answer to that without examining both appraisals, but you chose to exercise your own prejudice and assume the latter appraisal was better. Your answer once again publicly exacerbates a very serious problem in the appraisal industry, that is owners and lenders pressuring appraisers to conclude values that make the deal work.

Although the owner was a real estate broker who attempted to provide comparable sales to the appraiser, he was still biased and may have hand-picked only the higher priced sales when there may have been more similar sales supporting lower value. Perhaps the highest owner-provided sale was not arm's length or had non-market financing, which would have skewed his idea of value. The seller may have paid closing costs or held a second mortgage with favorable terms and loaded them into the purchase price. To be polite, the appraiser should have accepted the data, but these are the types of items that a good appraiser must investigate. A balanced reply to this letter writer would have included the above possibilities, not just a conclusion on your part that the first appraisal was bad because it did not match the owner's idea of value. I suspect if the owner was appealing his taxes, the first appraisal would have been wonderful in his eyes.

Further, appraising is far from a "guesstimate" as you called it. Rather, it is an opinion of value supported by credible market data. Appraising is based on various economic theories and a systematic method of problem solving, i.e. compiling relevant data, verifying its credibility, making market supported adjustments, and reconciling a final value.

It seems that your definition of a good appraisal is one that comes in at whatever number is needed to make the deal work, so I can understand your opinion that appraisals are the weakest link in the home mortgage process. In fact, why even require appraisals for financing if they should just be a rubber stamp of the purchase price or the value needed for a refinance?

Yes, appraiser certification was supposed to improve the problem of incompetent and unethical appraisers. Appraisers took much of the blame for the S&L crisis of the late 1980's, from which the Financial Institution Reform, Recovery and Enforcement Act (FIRREA) and appraiser certification was born. But the problem was not that appraisers were under-valuing properties. Rather, unethical appraisers were in collusion with unethical borrowers and unethical lenders, concluding values that made deals work, which is exactly what you are promoting.

Both under-valued and over-valued appraisals are a disservice to all involved. However, the problem in recent years has been from lending fraud client and pressure to inflate appraisals, not lowball appraisals. If a borrower buys or refinances a property with a high LTV using an inflated appraisal and has to move shortly afterward, they may not be able to sell the property for the amount of the mortgage. Take a "guesstimate" as to who will be to blame in that case.

Cordially,
Paul Ness, MAI

I am working on getting an electronic version of the letter and reply, and will post it if I can find it. It is too much for me to type. Also, here is his mailing address: P.O. Box 280038, San Francisco, CA 94128.
 

Mike Simpson

Senior Member
Joined
Jan 30, 2002
Last rediculous article he wrote I responded with a letter to the Editor.

I just logged onto his website and I'll be damned if I'm gonna give this idiot my E-Mail Address.

Mr. Bruss's writings are certainly perplexing. He's definately got a chip on his shoulder when it comes to the entire appraisal profession. People don't just get this way...somethings happened to him in the past, and I'd love to know what it was.

Brokers & Attorney's don't exactly have a stellar reputation amongst the rest of the populous...maybe he just wants to bash a group of prefessionals to see what it feels like? It's really a shame if anyone reads this garbage, they're certainly getting the wrong information if they do.

-Mike
 

Verne Hebert

Senior Member
Joined
Feb 25, 2002
Professional Status
Certified General Appraiser
State
Montana
Nice job Pau. Unfortunately the role of attorneys is advocacy-and apparantly it is ethical to advocate whatever they choose.

The truly unfortunate issue, however, is there are alot more ignorant people in society than we can imagine............and they digest this crap.

Signed,


Hands Tied in America.
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
While I agree that the possibility exists that Mr. Bruss has it in for appraisers, his actions may be nothing more than a prudent business decision. Think of the numbers. Of all the people that read his articles, what percentage do you think are appraisers? Of this number, what percentage are ethical appraisers? I'll bet this number is quite small relative to his total readership.

Can you imagine how his readership would dwindle if he responded as follows:

Mr/Mrs/Miss/Ms (trying to be politically correct) homeowner. Following the savings and loan scandal of some years ago, real estate appraisers were required to become licensed and yada, yada, yada. It's very possible, the estimate of value completed by the appraiser is an accurate reflection of whay your property would be worth if exposed to the market.

The appraiser may have actually done you a favor by providing your lender an accurate report because now thanks to your own extreme arrogance and stupidity, you will not be upside down in your home. I'm well aware of the fact that you have numerous creditors beating down your door because of excessive charges to your credit cards. I know the trip to Europe was necessary for your mental health, but, we can't all be running off to Europe every time we get a little down now can we. Again, another indication of your arrogance and stupidity.

I would like to offer you more sympathy and understanding during these stressful times, however, anyone as arrogant or stupid as you sound, does not deserve to own a home. In fact, you deserve to be homeless and I hope you are soon.
 
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