Voice of the Appraiser In-Depth Report

[CGinMN]

Appraisers are required to verify data that they use. If the PDR adds 200sf of finished area compared to county records because the scanned measurements were inaccurate, are y’all suggesting that the appraiser would not be liable?

 

[Mejappz]

One more thing: these 'data collectors' are not licensed or regulated by the state, and they do not carry Errors & Omissions (E&O) insurance. In some states, their practices are even illegal. So, when things go wrong, who do you think state boards, borrowers, and lenders will go after? The unlicensed, unregulated, and uninsured data collector, or the licensed, regulated, and insured appraiser?

 

[George Hatch]

Appraisers are required to verify data that they use. If the PDR adds 200sf of finished area compared to county records because the scanned measurements were inaccurate, are y’all suggesting that the appraiser would not be liable?

That's no different than when the error is in public records. You run into a discrepancy and need to resolve it - that's basic and is in no way specific to an assignment with a desktop SOW.

 

[djd09]

One more thing: these 'data collectors' are not licensed or regulated by the state, and they do not carry Errors & Omissions (E&O) insurance. In some states, their practices are even illegal. So, when things go wrong, who do you think state boards, borrowers, and lenders will go after? The unlicensed, unregulated, and uninsured data collector, or the licensed, regulated, and insured appraiser?

misleading is intentional or not...

 

[George Hatch]

LOL

How many errors have you transmitted in your appraisal reports due to no fault of your own? Due to those errors occurring in the MLS listing or public records and not apparent to you or anyone else during the normal course of business.

I just had another property owner lie to me via presenting a grossly inaccurate rent roll. I can't PROVE they lied to me, so I had to present what I can prove which is that my rental survey doesn't come anywhere near supporting the contract rents.

What I couldn't do is lie-by-omission about my suspicions or to use an undisclosed assumption about the accuracy of that data in the face of the obvious and apparent contradiction.

 

[djd09]

an error on a comparable sale is not the same as an error on the subject property...but keep trying

 

[CGinMN]

That's no different than when the error is in public records. You run into a discrepancy and need to resolve it - that's basic and is in no way specific to an assignment with a desktop SOW.

Agreed, it is no different in theory. So why are you saying the appraiser is not responsible for the contents of a PDR, and whether or not it is reliable? Note, the hybrid forms state the appraiser must rely upon the PDR to determine the condition and size of the improvements.

Limiting Condition #2:


Certification #2:

 

[Tom D]

How am I supposed to know that? We've seen cases where appraisers, despite drafting proper scopes of work, end up facing legal action due to faulty third-party inspections. These inspections may have seemed credible at the time but were later found to be inaccurate or erroneous. As a result, the appraisers were held liable for relying on these flawed reports.

You can be found innocent in every case, but if you get sued enough, although not losing, your E&O will drop you. Anybody can sue you, it does cost to have it thrown out.
I wouldn't do them, and most here won't. I don't fell sorry for those who do, it's a business risk. How does our E&O feel about a bad 3rd party, or there hasn't been enough data to say we don't insure you doing them, or maybe a high insurance fee like for a doctor.

 

[Dublin ohio]

an error on a comparable sale is not the same as an error on the subject property...but keep trying

So you have never done a 2055 or similar exterior only where you have to rely on only third party information

 

[TerryRohrer]

Agreed, it is no different in theory. So why are you saying the appraiser is not responsible for the contents of a PDR, and whether or not it is reliable? Note, the hybrid forms state the appraiser must rely upon the PDR to determine the condition and size of the improvements.

Limiting Condition #2:
View attachment 93758

Certification #2:
View attachment 93757

And short of measuring it yourself, how do you "resolve" the difference? Logic would suggest that someone with access to the interior of a home should be able to measure it accurately (assuming they know how). Around here, most Assessor do not measure with interior access. Most buildings I measure where there is a discrepancy between my measurements and the Assessor's, the difference is in the division between areas, like GLA vs Garage. This matter could be resolved if the appraiser was relieved of the liability from the GSE/lender mandated data. They are using it unchecked in their valuations. This is a matter of the thieves who need policed being the judge, jury, and executioner.