Smart Appraisers Make Dumb Mistakes?

[ZZGAMAZZ]

The best proof is USPAP itself. It has many errors and was, we might assume, written by "smart" appraisers. But then again, maybe the real problem was that they were not smart enough.

On another note, one thing I discovered along my path of experience, is that going back to correct an old appraisal is fraught with danger. It is surprising how a relatively small change to one part of a report can ripple through other parts of the report. A change in the SCA can impact the CA; so any time you make changes to an old report, you really have to sit down and study the dependencies, before making that change. It is very easy, when your focus is on a more current task, to brush off some requested change to a past report as "minor".

-------

1) FHA underwriter issued a stipulation that my Subject To various repairs should warrant a HC to a C4 UAD condition rather than the C3 that I indicated. To do so warranted at least 1 dozen changes throughout the report (though I'm still looking for an educational course that will help me better to understand the role/authority of the Direct Endorsement Underwriter.)

2) USPAP editors might well be appraisers, but they are beaurocrats 1st and infamously-foremost, e.g., creating a distinct set of standards for reporting versus developing.

 

[ZZGAMAZZ]

Realtors don't lie to appraisers they just report alternative facts and in many cases believe there version. As far as OREA now BREA they do not deal with crybaby appraisers who complain about Realtors and neither does the BRE care about issues like yours. You are the expert and its your job to verify data and there will be many times that you use inaccurate data because Realtors are notorious for over stating or omitting things in MLS . I did an-appraisal last week where the listing showed 4 bedrooms and 2 baths. I get to the property and I couldn't find a second bath, I ask the HO and he says its in the garage. I walk into the detached garage and sure enough it had a 3/4 bath out there. Anyway he said the Realtor told him it would be counted as a 2 bath home. Anyway no big deal I didn't call teh Realtor or complain to some State Board- The Realtor knew that 1 bath homes are hard to sell and in order to get walk through of potential buyers she would list it as a 4 bedroom, 2 bath, and it worked the buyer is planning on adding a second bath after the close of escrow.

----------
I'll believe it when I can pee-in-it...

 

[jay trotta]

What qualifies as a dumb mistake anyways?

Engage Fast Fingers, before brain; (IE: Rushing when the time element is totally your fault)

 

[glenn walker]

-------

1) FHA underwriter issued a stipulation that my Subject To various repairs should warrant a HC to a C4 UAD condition rather than the C3 that I indicated. To do so warranted at least 1 dozen changes throughout the report (though I'm still looking for an educational course that will help me better to understand the role/authority of the Direct Endorsement Underwriter.)

2) USPAP editors might well be appraisers, but they are beaurocrats 1st and infamously-foremost, e.g., creating a distinct set of standards for reporting versus developing.

That FHA DE Underwriter was wrong and if there were many repairs you should have make it as "Subject to Repairs" because until repairs are completed the property would normally not meet MPR. No matter what a C-3 is a home in very good condition and a minor repair would not have taken it down to a C-4. Anyway I would have told the Underwriter that the appraiser determines the condition rating based on his/her physical condition. OR YOU naver had a C-3 to begin with ?

 

[Joe Flacco]

Engage Fast Fingers, before brain; (IE: Rushing when the time element is totally your fault)

Dumb mistakes like that happens all the time. But I thought this thread was about human bias causing mistakes and due to that George Dell promoting algorithms as superior.

 

[ZZGAMAZZ]

Dumb mistakes like that happens all the time. But I thought this thread was about human bias causing mistakes and due to that George Dell promoting algorithms as superior.

----

Underwriter conditioned the report for an additional comparable that is on the market at present. My search revealed what appeared to be a "perfect" comparable; and although I couldn't figure out how I had overlooked it in the original report, I populated the 8th colum in the SCA grid; got on my horse to visit the comparable for a photo . . . and realized half-way there that it was the SUBJECT of the assignment. Like Chris Berman said on ESPN Univeristy, "there's no such things as a stupid question; just stupid people who ask the questions" .....

 

[jay trotta]

Dumb mistakes like that happens all the time. But I thought this thread was about human bias causing mistakes and due to that George Dell promoting algorithms as superior.

So are ( you) & GD saying algorithms are "mistake free" ? Anyone and any computer is subject to human error (Fat Fingers included)

 

[David S. Roberson]

How can any appraiser quote a fee to review an appraisal before seeing the actual appraisal? Half the time no new comparables are required, I end up not accepting the adjustments or wanting my own adjustments, resulting in a value conclusion inconsistent with the one put forth in the appraisal under review.

That's why reviews start at $1,000.

 

[Artemis Fowl]

Revisit my post #40.

 

[Econobot]

Bias is inherent to being human, you only what you know and vice versa. I think this is why its critical that the appraiser be a student of the market and provide market based support for everything they do, from comp selection to adjustments. Providing data driven analysis is what can limit the bias. From what I've seen certain appraisers truly think that their opinion matters, I feel that your data matters. As in where did you develop that opinion, did it come in a dream or through analyzing raw data? Far too often I see bias opinion which when unsupported is garbage. I've even seen appraisers quote how many appraisals they have completed in the given year. Who cares? Ego stroking doesnt convince anyone of anything.