Verification

[xm72mhd]

I would like to know how many of you verify the information you obtain, particularly with respect to comparable information. If you verify, from whom do you get the information and do you verify yourself or do you have a staff person do it? What sorts of information do you verify and what question do you ask? How much time is spent on the average report completing verification from sources not readily available on the Internet (meaning those you have to call, write to or track down)?

I would do this as a poll, but that is a skill I have not yet mastered and I think the answers to my questions require dialog anyway.

I have an idea there is a cost-benefit factor involved in the verification process, so if you have analyzed your efforts from that perspective, would you please discuss that as well?

 

[Ray Miller]

Edd,

I have a staff person check the informaiton. She tracks downs and trys to rule out any problems before the information gets to my desk.

With that said. I work with two computers at my desk. So a lot of time I am double checking the information I am receiving from the staff. One of the computers I write the reports on and the other one is used for research and the Appraiserforum. So while one is loading I can turn away and be working on something else.

 

[Marcia Langley]

Edd,

Because of the quality of my sources, the only thing I usually have to make phone calls to verify are to the agents for price/concession verification. The quality of their input is not good.

My worst data problem is information on the size and finish of basements and add-ons. I call agents and appraisers.

We have a very cooperative appraiser community that shares info and a good percentage of the time I am able to find out who has done an appraisal on a property (but not always).

My primary sources for the physical data are assessor's property records. I always get copies of that info on every comp, even if I have to drive a long distance to the courthouse. I then verify that against MLS and other appraisers.

 

[Ross (CO)]

Every comp appearing in final report will have been verified with call to either (and sometimes, both) agent name shown in MLS update after the sale. Since I am a "zealot", as well as an "apostle", that primary question which usually needs to be asked concerns concessions to the sale. Some agents do post comment of their concessionary amount in their listing, but not the majority. I do not have difficulty contacting agents, nor in receiving answers to questions posed. The worst that can occur is to hear that so-and-so (lister) is out of town for another few days......and so I will call the selling/buyer agent. Without doubt the most common and important information that is lacking is clear description of amount of finish (% of s.f.) in a basement area, rooms there, whether a bath on main level shown as "1" bath is actually just a 1/2-bath, and updating details for kitchen and baths depending on age of the home. Our Building Dept. (permit issuer) has good online records for info from ~mid-1980's for other key facts about.....original permits, new rooves, replaced furnaces and water heaters, basement finishes, additions, added detached garages, etc......when MLS will not likely offer historical/date perspective well enough.

It is comical to see an agent's comment for "newer" this-or-that appearing in their listing write-up, i.e. "newer roof".....and you learn that it was installed in 1992 ! I guess the real meaning of "newer" is something NOT being original to the house. Sometimes you have to ask for specific details when a home is described as being......."Updated, or upgraded, or remodeled, or renovated, re-finished or rehab'ed". Well, what exactly happened ? What was done there ? Those words are not inter-changable.

At top of grid column I do indicate which agent was contacted for verification purposes and I write notes in red ink upon my MLS print page for info they stated over the phone. You ask about .....cost/benefit factor. I can't say there is a "cost" other than the time spent to pursue that information. The "benefit" is not getting calls from client reps or reviewers because the report shows plenty of informational detail.....and generally answers any question if they just read the entire report. Being thorough, clearly written and reasonably concluded does not mean that the value opinion will automatically match every one else's expectations........and that is where one truly "loses" in the greater run over time. It takes a lot of courage for a client to continue to send assignments your way, if along that way, there are bumps in the road and described property conditions and supported value opinion are NOT what the property owner had told the lender !

 

[Stephen J. Vertin MAI]

Ed:

There is no recognized appraisal text that defines verification. So if you are looking for one good luck. It is my understanding verification should be defined by the appraiser within the scope of his/her report in order not to mislead clients. There are some clients who only require and want to pay for recognizable sources widely used in the industry such as MLS, Tax Records, Costar, etc., and other who want forensic verification where it is insistent you converse with all parties and have two written reliable sources. These are typically reports going to court or involved in other type hearings and some Governmental programs. Appraisers should charge accordingly given the work performed in the scope and the amount of verification required. I usually determine this by estimating cost per hour. Most of the form users such as HUD, Fannie, Freddie, etc define how they want the data verified thereby it is a given within the scope. For commercial reports it is determined on a case by case basis. Simply put how the data was verified within the scope and you should be fine. But most important assure it meets the needs of the specific assignment.

This subject is as old as this forum and has been talked about here since the 1990's. You may want to check achieves.

Steve Vertin