Steps to becoming a review appraiser

[chestnut1629]

Desk Review on property that you appraised?

I completed an appraisal and now the client is sending me a Desk Review on the Property from an Appraiser who did an appraisal on the same property and they want me to comment and possibly change my findings to match the other one? Are Reviewers allowed to have completed an assignment on the property they are reviewing?

 

[Dale Smalley]

Most my field review work has dried up. No new appraisals to review just some forensic stuff from years ago. Not even any good fraud stuff anymore.

 

[Highlight17]

Getting up in age and these old legs are not what they used to be.
Please give me some tips on becoming a review appraiser.
What is average pay and the time it takes to complete a review thoroughly.

Thank You,

Mark

I can't speak to AMC's, but I'm of the opinion that review appraisers employed by banks generally remain top notch and are paid pretty well with good benefits, hours, etc. Apart from replying to job postings (the AI jobs board is a good start), perhaps over the years you've made acquaintenaces with such review personnel and reaching out to them is not time wasted. The review courses now offered by the AI is a feather in your cap as well.

 

[3 Putt]

Hmmm.....Consider the following:

Full 1004 appraisal is more credible and reliable than a desktop appraisal in most cases, which should limit the risk of a complaint against an appraiser in some cases. So, if completing a desktop vs a full 1004 decreases the degree of credibility and reliability in some cases, wouldn't it stand to reason that the liability an appraiser has might increase in some cases when completing a desktop vs a full 1004?

I am of the opinion that completing a desktop comes with less liability and less scope of work, than completing a full assignment.

In completing a full assignment, you are liable from the time you get in your car, head to the neighborhood, do the inspection, view the comps, and return back to the office. Everything in that report is a result of what was gathered by you as the appraiser and everything is your responsibility.

In completing a desktop, you make extra ordinary assumptions that others information is correct. If the square footage is incorrect, not my fault, I used county records. If the photos or subject info is wrong, again, not my burden that the lender used a 3rd party for the inspection. Got a comparable with a better view? Again not my slip-up for failing to mention. Viewing the comps was not in the scope of work.

They are imperfect, however, the lender knows what they are getting when they order this type of appraisal.

 

[Highlight17]

I am of the opinion that completing a desktop comes with less liability and less scope of work, than completing a full assignment.

In completing a full assignment, you are liable from the time you get in your car, head to the neighborhood, do the inspection, view the comps, and return back to the office. Everything in that report is a result of what was gathered by you as the appraiser and everything is your responsibility.

In completing a desktop, you make extra ordinary assumptions that others information is correct. If the square footage is incorrect, not my fault, I used county records. If the photos or subject info is wrong, again, not my burden that the lender used a 3rd party for the inspection. Got a comparable with a better view? Again not my slip-up for failing to mention. Viewing the comps was not in the scope of work.

They are imperfect, however, the lender knows what they are getting when they order this type of appraisal.

Agreed, provided however that your scope of work is appropriate for your intended users and intended use, sometimes clients don't always know whats best for themselves.

 

[J Grant]

If you have not done much reviewing in past I 'd recomend taking the AI courses. Those courses may be overkill for the kind of QC reviewing many clients seem to want these days, but taking them would give insight and have value.

Imo, the need for field reviews is likely to diminish with the CU from Fannie taking over some of the review process, with the field reviews more than ever the real dogs or very high end properties with perhaps a value difference between the appraisers.

If your main goal is to get out of field work, I agree with some others that exploring desktop appraisals or evaluations might be an option.

 

[Sunshine in VA]

The desktop appraisal for a GSE does not limit your liability by much as you cannot add any assumptions or limiting condition not pre-printed on the form and the GSE pre-printed Scope of Work is clear in that you must be able to obtain adequate information about the subject including the interior to perform the appraisal:

This appraisal report is subject to the following scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser’s continuing education or membership in an appraisal organization, are permitted.
SCOPE OF WORK: The scope of work for this appraisal is defined by the complexity of this appraisal assignment and the reporting requirements of this appraisal report form, including the following definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a visual inspection of the exterior areas of the subject property from at least the street, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report.
The appraiser must be able to obtain adequate information about the physical characteristics (including, but not limited to, condition, room count, gross living area, etc.) of the subject property from the exterior-only inspection and reliable public and/or private sources to perform this appraisal. The appraiser should use the same type of data sources that he or she uses for comparable sales such as, but not limited to, multiple listing services, tax and assessment records, prior inspections, appraisal files, information provided by the property owner, etc.

 

[Sunshine in VA]

I completed an appraisal and now the client is sending me a Desk Review on the Property from an Appraiser who did an appraisal on the same property and they want me to comment and possibly change my findings to match the other one? Are Reviewers allowed to have completed an assignment on the property they are reviewing?

They had to inform their client before that they performed prior services in any capacity on the subject property within 3 years prior to accepting the assignment.

Some AMCs will engage an appraiser to perform a exterior only and report it on a FNMA 2055, then if the opinion of value serves their purpose, have the appraiser do a review appraisal of a FNMA 1004 they had a review appraisal order for because they believe that appraisers would not change their opinion of value from what they stated on the FNMA 2055 based on the FNMA 2055 pre-printed Scope of Work even though reviewing a FNMA 1004 appraisal might reveal more in-depth information about the subject from an interior/exterior inspection performed by another appraiser.

 

[3 Putt]

The desktop appraisal for a GSE does not limit your liability by much as you cannot add any assumptions or limiting condition not pre-printed on the form and the GSE pre-printed Scope of Work is clear in that you must be able to obtain adequate information about the subject including the interior to perform the appraisal:

The GSE's do not accept desktop appraisals. At least not now, but who knows what the future holds.

Desktops have a completely different scope of work, intended use, statement of assumptions and limiting conditions, and certifications.

 

[Webbed Feet]

The desktop appraisal for a GSE does not limit your liability by much as you cannot add any assumptions or limiting condition not pre-printed on the form and the GSE pre-printed Scope of Work is clear in that you must be able to obtain adequate information about the subject including the interior to perform the appraisal:

This appraisal report is subject to the following scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser’s continuing education or membership in an appraisal organization, are permitted.
SCOPE OF WORK: The scope of work for this appraisal is defined by the complexity of this appraisal assignment and the reporting requirements of this appraisal report form, including the following definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a visual inspection of the exterior areas of the subject property from at least the street, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report.
The appraiser must be able to obtain adequate information about the physical characteristics (including, but not limited to, condition, room count, gross living area, etc.) of the subject property from the exterior-only inspection and reliable public and/or private sources to perform this appraisal. The appraiser should use the same type of data sources that he or she uses for comparable sales such as, but not limited to, multiple listing services, tax and assessment records, prior inspections, appraisal files, information provided by the property owner, etc.

Specifically, what form, created by what GSE, are you referring to?