Where Do You Think "geographic Competency" Begins And Ends?

[DWiley]

That's all good and fine but we can't throw consumers under the bus to give the users what they want which is speed.

Who is throwing consumers under the bus? Fannie can do whatever it wants, up to and including eliminating appraisal requirements completely, and it has no effect on a consumer's ability to still demand and get an appraisal. Even now a large percentage of those offered a waiver do not accept that "opportunity" and opt for an appraisal. I will give you credit though, concern for consumers is far more likely to persuade than a simple appeal to preserve the status quo so appraisers do not have to change.

 

[djd09]

Appraiser Geographic Competency
Jonathan Stewart January 15, 2018
https://www.appraisalbuzz.com/appraiser-geographic-competency/

Just a coincidence.

 

[Joe Flacco]

Who is throwing consumers under the bus? Fannie can do whatever it wants, up to and including eliminating appraisal requirements completely, and it has no effect on a consumer's ability to still demand and get an appraisal. Even now a large percentage of those offered a waiver do not accept that "opportunity" and opt for an appraisal. I will give you credit though, concern for consumers is far more likely to persuade than a simple appeal to preserve the status quo so appraisers do not have to change.

I guess you got a point there. I guess it is more the user is throwing consumers under the bus and appraisers are complying. Sometimes giving the user what they want makes us look useless and like idiots to other stakeholders and members of public. That's bad for appraisal.

 

[Peter LeQuire]

".... accurate appraisal. Some of the resulting appraisal reports have led to complaints by realtors, builders, lenders, brokers, home sellers and buyers."

I find this more than a little unfunny, as it seems to imply that the most credible critics of an appraiser's geo-competence are people with an incentive in a transaction closing, regardless of the quality of the property or the parties. We've seen all sorts of interpretation about what constitutes geo-competence: ZIP codes, distance between an appraisers place of business and the properties she's allowed to appraise. And that appraisers are tasked with producing "accurate" appraisals. That word - "accurate" - ought to be exorcised from the appraisal lexicon, particularly for assignments in which there is no requirement for accuracy in the value definition that pertains.

 

[timd354]

“We will take disciplinary action against any member who violates our organization’s geographic competency ethics requirement. Non-member appraisers should strive to achieve the same level of ethical behavior.”

https://www.appraisalinstitute.org/...l-to-meet-geographic-competency-requirements/

I like how they try to tell the non-members what to do.

.

Yeah, that is really messed up for the AI to state that all appraisers, including non-members should act ethically...lol

 

[George Hatch]

The pattern has repeated ever since I got into this business. The users get more conservative and put more attention into appraisals when the market is down and they're losing money; and then when the market is going strong they cut their expectations back as much as they can to streamline their process so they can do more deals. Rinse and repeat.

As they say, "bad deals are made during good times".

But so what? you're still only responsible for what you do. You're not responsible for how much/little appraisal your users want or what decisions they make.

I have had clients that have made bad decisions and lost lots of money; but none of my appraisals got criticized because I didn't do anything wrong.


One more thing, the "consumers" to whom you are referring don't have a relationship with the appraiser, they aren't using the appraisal, and even if they were using the appraisal it would be for a completely different use than the intended use as stated, which is to provide into to the lender in making a mortgage decision.

 

[djd09]

I never said they were wrong, but they do not talk for me or tell me what to do.

 

[Joe Flacco]

I can appreciate that meeting user demands and trying to preserve public trust is a complicated thing. Just seems like preserving public trust is taking a back seat to meeting user demands.

 

[George Hatch]

The foundation of the public trust is the appraiser/client relationship. The only reason your work is marketable is the perception that your clients and prospective clients (and their downstream users) have that the results you produce are reasonable for their usage.

Try getting work from a client who's selling their packages from some investor who has blackballed you. It's not going to happen.

These various users, which often go beyond just the client, make their own decisions about how much or how little. Your choice as an appraiser is to either accept the assignment and do what you need to do to make it right, counteroffer to do more if you think what they're asking for is inadequate, or to decline it. "Telling" them what they're allowed to use is not among our options.

 

[Joe Flacco]

The foundation of the public trust is the appraiser/client relationship. The only reason your work is marketable is the perception that your clients and prospective clients (and their downstream users) have that the results you produce are reasonable for their usage.

Try getting work from a client who's selling their packages from some investor who has blackballed you. It's not going to happen.

These various users, which often go beyond just the client, make their own decisions about how much or how little. Your choice as an appraiser is to either accept the assignment and do what you need to do to make it right, counteroffer to do more if you think what they're asking for is inadequate, or to decline it. "Telling" them what they're allowed to use is not among our options.

I get what you are saying. But then the alternate scope valuations probably closes the gap further with AVM's and then they say well might as well use AVM's. I don't know. We got problems.