Voice of the Appraiser In-Depth Report

[George Hatch]

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

An error in public records or the subject's MLS listing is inclusive in what I'm referring to. And you HAVE run into such errors about the subject before. You just never spotted all of them. Not unless you're special from every other appraiser.

Besides, the appraiser's SOW is at the desktop and is clearly disclosed as such in those reports.

 

[George Hatch]

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.

I don't think you want to get into appraiser performance with measuring. How many appraisal reports on the same property have you seen where all the different appraisers had all the same measurements? It's not never but it also isn't always.

Besides, even when there is an error it doesn't become the significant threat to safe/sound lending until it dorks the value beyond all semblance of reality.

 

[djd09]

if you are lucky the home inspector will not be caught dorking the subject property condition to help out those nice folks...

 

[George Hatch]

Every 1004 you have ever signed has included (among others) the following certifications:



No matter how liberal a judge is, they can all still read for content. Assuming the atty is competent at arguing the appraiser's legitimate position. There's no accounting for what happens in court if a case is incompetently argued by some random atty who doesn't know what they're doing.

And since I know the next step in this discussion is to say appraisers know the PDRs are too inaccurate to use (more inaccurate than their own performance) then the fix for that is that those appraisers are required to withdraw from those assignments.

 

[TerryRohrer]

I don't think you want to get into appraiser performance with measuring. How many appraisal reports on the same property have you seen where all the different appraisers had all the same measurements? It's not never but it also isn't always.

Besides, even when there is an error it doesn't become the significant threat to safe/sound lending until it dorks the value beyond all semblance of reality.

I'm not defending appraisers' ability to measure. I'm defending my ability to measure and my willingness to take accountability for my ability to measure. It should be the same for all in the game...PDC collectors (maybe they will go back 6 times for each $20 assignment if the appraiser questions them); the GSEs who mandate reliance on the PDC information; and everyone else in the food chain. If you make the decision, you own it. If you rely on that which you are required to rely on by the agreement you reached with the deciding party, you don't own it.

 

[CGinMN]

Let's say a PDR is delivered to the appraiser, and it states the subject is C4 with no known structural issues. The appraiser receives a copy of the PDR, reviews it thoroughly, and agrees. The loan closes, and the borrower moves in, only to find there are structural issues with the home. This is only somewhat evident in the low-def photos provided in the PDR, which, upon closer examination, shows what appears to be a horizontal crack in the basement foundation. Had the appraiser seen the property, they would have called for a third-party inspection. But the PDR was used instead and it was determined that there were no structural issues. Because of cognitive bias (baader-meinhof or hindsight bias), anyone who sees the PDR after knowing that there were structural issues would say the appraiser was in the wrong. The appraiser could be held liable in a court and by the state.

Don't forget Cert #10. Is a PDR from the lender considered a disinterested source? I don't think so. Therefore, how should the appraiser verify all the different statements, observations, and conclusions in a PDR without a personal observation, or a second PDR from a disinterested source?

 

[George Hatch]

What data sources do appraisers use for any exterior-only or any desktop SOW? In what ways did appraisers resolve any discrepancies they ran into with those assignments. Why should appraisers be held to any different expectations for these desktop SOW assignments?

That is not a trick question. If principle and consistency has any utility at all in this line of work then let's do that.

IRL and going back many years, 95% of all appraisers never once fretted the lack of personal measurements and interior inspections on any 2055 they ever did. It's far too late for them to be clutching their pearls and taking to the fainting couch over doing the same - and being consistent with their actions - with these.

 

[CGinMN]

Rather than change the subject, just address the concerns above.

 

[chad hampton]

I knew this was going to be a cluster**** 5 years ago when the snake oil scumbags that push and defend these things were being flown around to state board stakeholder meetings.

State boards can't tell the public that they only oversee half of the appraisal process. Not sure how some of you can't understand that.

 

[TerryRohrer]

Rather than change the subject, just address the concerns above.

Amen!