When do you recommend getting a new appraisal when you do a desk review?

[moh malekpour]

According to the report and the MLS, the subject was listed at the time of appraisal. The following words were mentioned about the property in MLS: What will be done before the close of escrow: Interior & exterior will be painted, NEW grass in the front, NEW Vinyl in the kitchen & dining room, NEW shower door and carpet will be cleaned in the bedrooms & the living room
Garage has been converted into an additional room. Seller is selling as its present condition
The following words were mentioned in the report about the condition of subject Subject is in average overall condition, with no functional or external inadequacies. Quality of construction appears to be average. No repairs are needed
No word of garage conversion and no word of interior condition and deferred maintenance. No adjustment for condition or the garage
Can you make an extra assumption and rely on this report or you call for a new appraisal based on the lack of clarification of the garage and interior conditions?
Besides the condition, the appraisal is over valued as the subject has 3 bedroom/1 bath but all selected comps are 3 bedrooms/2 baths and superior conditions while there was at least one or two 3 bedrooms/1 bath at the time of appraisal
The purchase contract was not available but the contract price is there and the appraisal value is the same as contract price.
The quarterly sales price median shows that the value is declining starting from the last quarter of 2006 and volume of sales is decreasing but report says they are stable and balance.
The site dimensions show 0.15 Acres. This is a not dimension, it is area.
What do you do with this?

 

[Scott Kibler]

Interview the listing agent for details of the condition of the property as of the effective date.

If your scope of work calls for a new opinion of value and you can produce a credible appraisal based upon the information available with appropriate assumptions then go for it. If you cannot then call for a new appraisal.

 

[moh malekpour]

Problem is that this property was active listing at the time of appraisal. 40 days after the appraisal, it was expired and now the broker doesn't cooperate to answer the question because it is an expired listing. the problem that I have is that there is nothing in the report about the garage conversion, the condition in the MLS and I am suspecious that the deferred maintenance and the converted garage might still be there.

 

[Mike Kennedy]

Recommend copying and pasting your first and second posts (edited of course) ..........and emailing your client with recommendation - insufficient data to render a supported disparate opinion of value. Initial desk review confirms serious conflicting information between Listing and appraisal report - ONLY full appraisal is recommended. If they balk - bill em for time served......and walk. ps. www.mortgagefraudwatchlist.org

 

[moh malekpour]

Mike,
Do you want to know what else is wrong with this appraisal besides all those that I mentioned? You cannot believe this but it is true. All 3 comps have incorrect doc numbers. Comp 2 only has the correct address. Everything else is incorrect according to data quick, realist and MLS. His source is realquest and I am going to get the property profile of that comp from my friend who uses realquest in the case if realquest has messed up with that property data but I don’t think so. It has wrong sale price, 13% higher, wrong doc #, wrong closing date (3 months different). Wrong lot size, wrong GLA, and wrong number of garage.
I have already gotten my fee for the desk review and I was thinking to mention every unacceptable item about the appraisal like the wrong neighborhood market trends, wrong site dimensions, condition and garage conversion discrepancy, the lack of contract price sources, selecting superior comps and using several wrong data for comp 2.
I don’t think even if I give the report a poor grade and totally reject all three used comps because they are superior in conditions, all with 2 bath, all with incorrect doc# and comp 2 with total wrong data, I can rely on the rest of the report and use my own comps and come up with my own opinion of value. I have never seen anything like this.

 

[hastalavista]

Interview the listing agent for details of the condition of the property as of the effective date.

If your scope of work calls for a new opinion of value and you can produce a credible appraisal based upon the information available with appropriate assumptions then go for it. If you cannot then call for a new appraisal.

I agree with everything Scott says.
If the report is not sufficiently credible that you can rely upon it for your EAs, then you cannot complete a credible appraisal (review value) if that is part of your SOW.

You can still complete a credible review, however. You can rate the original report "not credible" and poor quality as presented based on your verification sources.
There; you just earned your fee!

 

[Scott Kibler]

Mike,
Do you want to know what else is wrong with this appraisal besides all those that I mentioned? You cannot believe this but it is true.

You must be new to the review game. Stick with it and you'll get a steady diet of reports that make this one look like a demo for someone's SRA.

 

[Mike Kennedy]

Moh - what you describe has become almost the Norm - see my first post. Wouldn't bat an eye. Recommend a Full Appraisal - and report the individual who brings shame to all of us.

 

[moh malekpour]

You must be new to the review game. Stick with it and you'll get a steady diet of reports that make this one look like a demo for someone's SRA.

After an hour of search, I finally was able to find out what he had done with comp 2. Comp 2 is a closed sale but has a lower sale price so, he puts down the address of that property as comp 2 and puts down the data from another property which is aslo a closed sale but has a guesthouse or 2nd unit and $50,000 higher sale price in the grid for that property and he thinks he can get away with that.

 

[Mike Kennedy]

After an hour of search, I finally was able to find out what he had done with comp 2. Comp 2 is a closed sale but has a lower sale price so, he puts down the address of that property as comp 2 and puts down the data from another property which is aslo a closed sale but has a guesthouse or 2nd unit and $50,000 higher sale price in the grid for that property and he thinks he can get away with that.[/quote]


he will unless someone stops him.