This VA appraisal I'm reviewing is one of the worst I've read. Is there any way I can report this to the VA?

[JeffSH]

-Subject history not analyzed. Missing sale from 2019,
-Stable market conditions indicated,
-No time adjustments (15% YOY appreciation in the market),
-No sale comp from the past 6 months,
-1 of the 3 comps went under contract over a year ago,
-No condition adjustment when comparing a newly renovated subject to a home that hasn't been touched in 20 years. Similar ages,
-$3,000 full bathroom adjustment for 1.0 vs 2.0 in the 300k-$350k price range
-$4,000 deck/patio adjustments (a deck is worth more than a bathroom??? You can use a bathroom in December LOL)
-No commentary on adjustments.
-Exposure time estimate of 180 days. Median DOM: 20. Avg DOM: 45.
----

This is for a refinance. They purchased in 2019 for $265k, and this appraiser came in at $275k in 2022. That alone shows you the appraisal is wrong, but the most recent and similar comps support $350k. It's so frustrating when I read appraisals like this. They make us all look terrible and it takes jobs away from hardworking appraisers who take their career seriously and have pride in their work.

What can I do?

 

[TerryRohrer]

The VA won't care, as long as the loan was made. Your State Board would, I expect. Far more common than anyone knows, but they seldom see the light of day.

 

[Ariba]

This is for a refinance. They purchased in 2019 for $265k, and this appraiser came in at $275k in 2022. That alone shows you the appraisal is wrong, but the most recent and similar comps support $350k. It's so frustrating when I read appraisals like this. They make us all look terrible and it takes jobs away from hardworking appraisers who take their career seriously and have pride in their work.

What can I do?

What was your SOW? Refinance or Review the appraisal? Also, "that alone shows you the appraisal is wrong" is a foolish statement.

You have three options: 1) Move on; 2) Notify the VA RLC, or 3) Turn the appraisal into the State Board.

I feel your frustration and as hard as it might be I would move on.

The VA won't care, as long as the loan was made. Your State Board would, I expect. Far more common than anyone knows, but they seldom see the light of day.

Do you know this to be a fact? However, I agree with you they seldom see the light of day.

 

[J Grant]

-Subject history not analyzed. Missing sale from 2019,
-Stable market conditions indicated,
-No time adjustments (15% YOY appreciation in the market),
-No sale comp from the past 6 months,
-1 of the 3 comps went under contract over a year ago,
-No condition adjustment when comparing a newly renovated subject to a home that hasn't been touched in 20 years. Similar ages,
-$3,000 full bathroom adjustment for 1.0 vs 2.0 in the 300k-$350k price range
-$4,000 deck/patio adjustments (a deck is worth more than a bathroom??? You can use a bathroom in December LOL)
-No commentary on adjustments.
-Exposure time estimate of 180 days. Median DOM: 20. Avg DOM: 45.
----

This is for a refinance. They purchased in 2019 for $265k, and this appraiser came in at $275k in 2022. That alone shows you the appraisal is wrong, but the most recent and similar comps support $350k. It's so frustrating when I read appraisals like this. They make us all look terrible and it takes jobs away from hardworking appraisers who take their career seriously and have pride in their work.

What can I do?

Do your job as a reviewer, turn it in to client. It is up to client to send it to state board if they find a USPAP violation and same goes for VA

If you disagree with value then make the case in the appraisal part of the review for your own comps, adjustments and value of 350k . Let the client decide which is more credible.

I assume you have this appraisal as a review assignment ? If not please clarify

 

[ramrcdk]

So you have done THE Second Appraisal - a review OR a desk top ( in the least ) for your Assignment SOW or Verification Conclusions
and CYA to Report the appraisal to the Board? Is your Client... on board? Or in the least ...Notified? Hopefully, "they" would take the reins since they are THE Client.

Point: I am neither agreeing or disagreeing with your Post conclusions
just BE sure of Proper Procedure and/or perhaps contact The Board for their suggestions on HOW to proceed.

I admire guts-to see-... what can happen.

 

[glenn walker]

No Allow the Lender -Client to make that decision they are your cleint and your scope of work and engagement is to not get them into a situation they may not want to be in. Remember A State Board may also ask for your review- your work-file- engagement-scope of work and you may also end up in trouble. The VA Lender or Loan Servicer will make or take the appropriate actions not you.

 

[Overimprovement]

Clearly state in your review the applicable USPAP violations found. For example, if no time adjustments are used and/or no discussion of market trends are in report, then it sounds like market conditions were not analyzed, so cite Standard 1-3(a).

If value is off, then depending on SOW, you are required to now do a good bit more work to develop and support your own value. Hope that was priced into the review fee.

 

[glenn walker]

Clearly state in your review the applicable USPAP violations found. For example, if no time adjustments are used and/or no discussion of market trends are in report, then it sounds like market conditions were not analyzed, so cite Standard 1-3(a).

If value is off, then depending on SOW, you are required to now do a good bit more work to develop and support your own value. Hope that was priced into the review fee.

State Boards make USPAP declensions not reviewers as we are not USPAP Experts and a accusation found to be wrong or false can make the reviewer go from being the "hunter to being the hunted " -At best as a previous long time forensic reviewer I will give him some verbiage below he can use when he wants to go down that dangerious path without making accusations.

#1- The opinions stated in the report under review was ( or is not ) developed in compliance with applicable standards and requirements. ** IE: applicable standards can be "wink-wink " potential USPAP.issues.

 

[JeffSH]

Yes, typical review assignment. I do a bunch of these and I understand that I have to essentially provide an appraisal of my own. Of all the review assignments I've done (I enjoy them for some reason), this is in the top 3 worst appraisals. It needs to be known how bad this report is.

Clearly state in your review the applicable USPAP violations found. For example, if no time adjustments are used and/or no discussion of market trends are in report, then it sounds like market conditions were not analyzed, so cite Standard 1-3(a).

GREAT IDEA!!!! This i why I post here. I've always had the thought in my head that because USPAP is so broad, I couldn't really reference it in regards to bad appraisal analysis. I usually just say something like, "It is strongly emphasized that the appraisal quality is below average and the analysis is unreasonable." before detailing all of the issues with the report and adding support for my disagreements. I'll definitely add USPAP references. I've never had an appraisal omit the 3-year sale history, so that's an easy start.

 

[JeffSH]

State Boards make USPAP declensions not reviewers as we are not USPAP Experts and a accusation found to be wrong or false can make the reviewer go from being the "hunter to being the hunted " -At best as a previous long time forensic reviewer I will give him some verbiage below he can use when he wants to go down that dangerious path without making accusations.

Bleh. This makes sense too. I'll have to read the exact wording of USPAP and make a decision. I'm sure I've done this before and decided against it, but I might as well do it again.