Sounds like MN is joining the Dirty Board List

[CCAAMO]

Realtors, when they want to disclose. Many will not. Disclosure papers are to be filed with the auditors office, but a copy of the HUD 1 does not. Basically anyone can put any sales price or any other information in the disclosures at this time. Pain in the rump!!

So you can't even get confirmation from Title? Sounds like a recipe for fraud. In the case of the appriaser in Minnesota, I wonder if he even called the agent to confirm the MLS data?

 

[lisagruhot]

Yes he did.

 

[CCAAMO]

Yes he did.

How do you know that, it does not say that in the original post? Is this information available from the Title company or other data sources in Minnisota. If it is then he should have used them. If it is not and he verifed the data with the Agent then he should be O.K. What data source did the state or reviewer ues to determine it was a cash transaction?

 

[lisagruhot]

I know because I know the whole details of this. This was for a private individual for a divorce case. I have no idea what source the state used because they do not say. The state also is falsely stating that no adjustment was made regarding the basement. This appraisal was sent in by a homeowner as evidence that the wife's appraiser overvalued the property by over $300,000. There was no complaint made.

 

[Stephen J. Vertin MAI]

O.K but you still have to use a secondary source. In Indiana, other than the MLS, what do you use to verify sales price, financing etc?

Now this is an interesting comment. Are you saying 1) It is always a good idea to verify data with two sources, 2) It is required by USPAP you must verify data with two sources or, 3) It is required in some supplemental standard that you verify data with two sources?

Basically anyone can put any sales price or any other information in the disclosures at this time.

I believed you can be fined for doing this in Indiana

 

[Vegan702]

Nope, incorrect. The appraiser used the information from the MLS for the financing type and they are accusing the appraiser of not making the basement adjustment. They are wrong, and don't you think $3K is pretty steep even if they are right?

I am confused about the basement. Was an adjustment warranted and he didn't make it or are you saying that there was a basement and he deemed no adjustment was warranted?

As for type of financing, I use whatever is in the MLS. I do not use any secondary sources for verifying the type of financing other then verifying that the sales price listed in the MLS matched what was recorded with the county.

As for the fine $3k seems reasonable to me. They have to cover investigative fees, etc. I would assume. In the realm of things today $3k doesn't really represent much anymore other then a slap on the wrist in regards to fines, etc. Did he receive any other punishment like continuing ed, etc?

 

[lisagruhot]

An adjustment was warranted and it was made. They are saying that none was made when it was. It is right in the report.

 

[Terrel L. Shields]

Was an adjustment warranted and he didn't make it or are you saying that there was a basement and he deemed no adjustment was warranted?

Ok, assume that its A or B....does it violate USPAP? I mean if an appraiser decides a basement DOES NOT contribute value, then PROVE THAT IT DOES... Do we simply say that because it was there it HAS to contribute value? I realize MN many houses have basements. But in my neckavthawoods, we call 'em subfloor swimming pools or the best ones as simply caves..wet caves. I would likely not make a basement adjustment for the worst of them. In the case of a recent property, we scoured the county for sales and at the best determined it was $10-12/SF adjustment at best. Take a more subtle example. An old barn. Rustic, can be used to store 'stuff' in. Maybe keep the lawnmower, a few bales of hay for Ole Nellie the horse. Say it's on 5 ac. + house. It burns down. Does it matter? Would someone predicate a buying decision upon it being there? Not likely...
How can a difference in opinion violate USPAP? I may disagree with your way of analyzing it, but it hardly means my judgment is a better substitute for yours.
BOTBE (being overtaken by events) here but if it was adjusted for then the board again, cannot substitute their judgment for yours. I see Reviewers do it all the time however.

 

[Stephen J. Vertin MAI]

How can a difference in opinion violate USPAP?

Some people can not deal with descent.

 

[Vegan702]

I assume if you miss making warranted adjustments that it does violate USPAP.