• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

This Industry's Out Of Control!

Status
Not open for further replies.

Mike Simpson

Senior Member
Joined
Jan 30, 2002
I had a request for a rush appraisal come over Friday. Need by Tuesday, we had another appraiser do a 2055, but they're not FHA approved and somethings come up--we now need a FHA appraisal. They sent over the other guys 2055 to help speed things up.

I'm looking over the report and the "other guy" is someone I wrote about a couple years ago. He was a guest speaker at a newbie real estate class I was attending, brought in by the local "cuts corners" mortgage broker teaching the class. The "other guy" wasn't licensed at the time, but knew enough about appraising to tell the entire class--"only crusty old appraisers call for conditions anymore." My blood boiled and we had a few words at break--well I had a few words...he mostly listened.

The client is someone I've come to enjoy working with--they back me up and don't object when an appraisal is lower than they expected or I call for a condition...so imagine my horror when I discover the "other guy" is my latest competition (he got his license last January).

Looking over the report I discover comp #2 is ficticious ($#@&ing hack!!!). He used a two story (to comp a Splitter) uses the bottom floor SF in the basement section of the grid, the upper floor as above grade GLA, calls it a Splitter, and cites MLS as a second data source--when it's not listed in the MLS at all!!! He then takes a picture of a Split-Entry (God only knows where from) and puts it in the comparable photograph addendum.

What really starches my shorts is the puke didn't have to do this at all--there's plenty of other data to support the stinking sales price!

I'm so tired of seeing this kinda crap I can't see straight anymore. These people are a major danger to the system and make decent hardworking appraisers look pathetic! I'M SICK OF IT!!!...feel like I got fleas just looking at the stupid report--now IT'S a competitor.

When's it all gonna stop???

-Mike
 

jtrotta

Senior Member
Joined
Jan 16, 2002
it'll ALL stop, when ya git outa the bniz :mrgreen:

now, unspindle yer shorts an git ta work, thats why they called ya :beer:


B)
 

David Mullen

Junior Member
Joined
Jan 17, 2002
It may stop when we turn in every one of the bad (fraudulent) reports that we encounter and when the States get really serious about enforcement.

At this time, it seems that the crooks can do their thing, pay a small fine and return to business as usual a little better educated about how to avoid getting caught next time. You can bet that there will be a next time too but they will be a lot harder to catch.

There is no shortage of people calling themselves appraisers so the states need to revoke licenses for anything serious. It will not result in a shortage of form fillers. If states need the money, they could accompany that with heavy fines.

Maybe we as a group need to somehow begin to demand real disciplinary actions against the bad guys.
 

Mike Simpson

Senior Member
Joined
Jan 30, 2002
I just looked @ jtrotta's comment and though, "he's right." "My shorts are spindled" and I do need to get back to work.

-Sorry
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
In the oil patch we used to say when things when wrong that we "twisted off" and when every thing was going smooth, we were 'turning to the right"

Vent a little and get the head back down.

David said
It may stop when we turn in every one of the bad (fraudulent) reports that we encounter and when the States get really serious about enforcement.

That could turn into a full time job. If enough of us quit and just started turning in the dinks, the whole show would crash to earth. perhaps an Appraiser's strike, A 10 day I-ain't-gonna-work strike would get the bankers attention
 

Ben Vukicevich SRA

Senior Member
Joined
Feb 9, 2002
Professional Status
Certified General Appraiser
State
New Jersey
Geez,

You mean I should turn in the one I'm looking at now where the appraiser used a high-rise beachfront condo comp to compare to the bayfront subject condo with a dock---no location adjustment made-not that you could even attempt to make one anyway..

Ben
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Mike,

It will probably get worse before it gets better. I don't know about your area, but the re-fi market has come to a crawl here and that means appraisers will start stabbing each other in the back, undercutting prices, making deals work and selling their souls in order to keep their business and trainees from dwindling. Every time we go through this type of lull, I batten down the hatches, watch and shake my head as I watch the piranha's attack each other. Somehow, this one man shop always survives by keeping a small base of clients that actually trust his opinion. They occasionally turn on me, because they are commission driven, but they either come back or I learn to live without them.
 

Oregon Doug

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Oregon
Tim - I think your right, it will get worse in the near term as cheap AVM's take a bigger bite out of a dwindling market as this present re-fi boom goes bust. I expect to see a lot more fee cutting, back stabbing compitition among the number hitters but when the going gets tough, many of them will go back to being pizza makers and pumping gas. But they'll be back again just as soon as rates fall again & the re-fi market returns. It's a cycle.

Diversify your appraisal business because as fewer homeowners are able to borrow themselves out of debt, there will be more foreclosure activity in a confused market.

Expect to see substantial License Fee increases in the future. All the state agencies are poor to begin with and are facing tough economic futures. The only income most have is the licensing/certification fees, that will fall as the number of appraisers declines. It will take about a year for this to be seen, maybe two as most states are on a two year liscence cycle.

Oregon Doug
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
I hear ya Tim,
I recently took a class for Income Properties put on by NAIFA (yes they made me join) and I have made some good contacts that can help me diversify out of mortgage origination AND I picked up a possible new client for income work. In the mean time the Tuna are here and me and the brother-in-laws are taking Wednesday off and gasing up the boat ($2.20 per gallon!!!!) and taking the new trolling setups for their first use!!! Thats how I will "live without them" :beer:
 

Mike Simpson

Senior Member
Joined
Jan 30, 2002
I phoned the client enroute to the office from the inspection and gave him the condition requirements over the phone...and I remembered to include that we'd looked over "sir lies a lot's" comps and #2 was fabricated out of pieces of county records and a picture of a wrong house! I'd heard about stuff like this happening, but never actually experienced it myself--this clowns over-the-top out of control! He's a poster boy for tougher sanctions against number hitters!

I've only turned in one appraiser, and a broker (on two separate incidents). I was basically given no choice. The appraiser lost their license for a period and the broker quickly disappeared. I can't conduct business by turning in everyone who rightfully should be--like Terrell said, "that could turn into a full time job."

However, I've a long memory and although I know it could be considered "bad form" to talk badly of ones competition...I'll tell everyone I know how this guy conducts business.

-Mike
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks