This Industry's Out Of Control!

[Pam Wyant]

Joanne - a two year Appraiser degree, with coursework and mock appraisals taking part of the place of apprenticeship isn't a bad idea really. As long as the teacher knows what they are doing and are ethical that would help stem the problem of poorly trained apprentices. It would probably still be necessary for a partial apprenticeship served "in the real field". I don't think a class could fully prepare the students for the real world of appraising, but it sure could help get them off to a good start. And if we didn't have to train "from scratch" maybe a few more good, ethical appraisers would be willing to take on apprentices - and even pay them.

 

[Doug in NC]

If I knew of a violation as serious as making up comps (I heard about a local guy who did it, but I didn't see the report), I would turn him in. I often ask to see copies of old appraisal reports so that I can see what my competition is doing.

Although an appraiser may stay in business once he has been sanctioned, he is going to have a black spot on his record. His E&O provider will make him pay dearly for a new policy. I don't know, he may even have trouble getting a new policy for a serious violation. All reputable clients also ask if you have had any USPAP violations on their contracts with appraisers. Both instances would make it more difficult for a sorry appraiser to get more work. (He can, of course, have all the broker work he wants.)

It couldn't hurt to burn that appraiser Mike. They give the rest of us a bad name and they take away work that WE could be doing.

Doug

 

[Mike Simpson]

Doug-

Thanks for your comments, and I mostly agree with what you say. However, as one poster said, 'if I started turning people in it would become a fulltime job!' I have turned a couple people in--they gave me no choice--I was defending my license in one case, and my business on another--I bet they now wish they'd conducted themselves differently.

I've pointed out to my client that this guy fabricated a comp & told an entire classroom of budding newbie real estate agents, "only crusty old appraisers call for conditions." If this client decides this is the kind of appraiser they want to work with--then that's their decision.

In the mean time--I'm leaving mortgage loan appraising behind--I feel its just become too dirty a business, and I no longer want any part of it. An ethical appraiser must go through too many potential clients to find ONE they can work with for any period of time. We've turned a corner as a business, and we're taking our ball and going home...we're out of here!!!

Thanks,

-Mike

 

[John Wilson]

Originally posted by Mike Simpson@Aug 25 2003, 08:27 PM
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.

Sounds like he used a raised ranch, not a two story. I use "raised ranches, bi-levels, split enties" ( what ever you want to call them) all the time for split comps. They usually have the same type of functional formal lower level.

And if the comp wasn't listed, how do you know the photo was false as well?

Maybe his real mistake was entering the MLS as the data source.

Of course, I put that in every report too. Even though the source of the sale might have been from the tax database within the MLS. It's still the MLS.

Just a thought.

 

[Mike Simpson]

John-

He used data from county records via Metroscan. Placed the 1st floor (main level) data as if it was a basement on the grid--also indicated the 2nd floor level was the main level (1st floor).

The Auditor's File Number matched county records, as did the sales date, room count, SF (although wrongly indicated level in the grid).

He also chose a nice split entry home to include in the photograph addendum...problem was it wasn't a picture of the correct house--I know I drove the comps & took the correct picture (wasn't even the same color or style/design).

What he did was, take bits & pieces of the truth--mix up the data to suite his needs & include a picture of a home not utilized in the analysis.

If the client is satisfied with this kind of product--so be it. I need & desire a clientele who wouldn't consider this guy my competitor.

-Mike

 

[Randy Beigh]

"What he did was, take bits & pieces of the truth--mix up the data to suite his needs & include a picture of a home not utilized in the analysis."

Mike

All fiction has some truth in it.

When I was working for a big company, we hired a staff appraiser in Portland,OR. After the first appraisal came in, I suspected something, but didn't know what was going on. He was an SRA, so we thought we had a good as well as experienced appraiser. This was before licensing, although Oregon had a licensing system in place and he was state licensed.

After a few appraisals, I smelled trouble. As I have said before, I look for consistency and the reports were not consistant. I went to my boss and we set out to find out what was going on. I started calling for maps of the communities he was working in and for public information.

It turns out, the addresses were made up as were the sales prices. The photos appeared to have been taken anywhere. Who knows where.

We fired him and I had to go down to the office to clean it out. That is when I found out what was going on. He was mixing and matching. He needed this address and that price. He didn't make up anything. The stuff just came from different sources.

The fiction came from non-fiction sources.

 

[David Mullen]

I don't think that getting an appraisal license or certification even requires a high school diploma. I know a couple of appraisers that did not graduate from high school.

 

[Mike Simpson]

David-

GED is the lowest limit of equivalent education required in most states (insofar as I'm aware).

Randy-

I find it disheartening to learn an SRA would fabricate comparables. This is unnecessary to make a living and probably indicates a level of greed on the part of the SRA (do as many as you can & make up the data).

I'm worrying about typo's & we've this sort to compete with!

By the way...what is the lowest limit of education requirements to posses a SRA designation? Didn't it used to be high school or its equivalency + required Institute courses? Do you know if that's fact & if so what year was the change to the AA requirement?

-Mike

-Mike

 

[Eric Boggs]

Austin,

I am so tired of teachers getting hammered, from the Shrub we have as a President to other weeny politicians, like our Governor, Mike Weasley. My wife is a 3rd grade teacher and she and her fellow professionals work until 12:00 midnight most nights preparing lesson plans and gathering material to teach the kids. As a group, they are VERY hard working and very dedicated. And the pay STINKS! Not to mention the bureaucracy with their endless supply of useless ideas, memos, paperwork and meetings. You know, it is nearly impossible to teach a kid who gets 1 meal a day (supplied by the taxpayers), is being abused (mentally and/or physically) is being raised by an older sibling, probably only a few years older than them, or a grandparent, or worse yet, a parent who is on drugs or abuses alcohol (who doesn't give a rats behind about the child). Yes, some children WILL be left behind! So please, don't get down on teachers - instead, thank them for putting up with all of the nonsense shoved down their throats.

Oh, I have seen Ritalin work wonders, despite what Rush says.

Eric

 

[Randy Beigh]

Mike S

Never have been a member of the old Society or the Appraisal Institute and don't know their rules.

It wasn't greed with this guy, just, likely, laziness. He was staff on salary. The pay was the same, either way.