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Yeah, but the other appraiser said......

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David S. Roberson

Thread Starter
Senior Member
Gold Supporting Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
I've heard it a dozens of times, and I know you've heard it too. "Yeah, I saw your report, but the other guy appraised for $20,000 more last year. How did it go down in value $20,000 in one year? Don't you know what you're doing?" How do you respond when a previous appraisal was inflated and you deliver the sad truth?
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
David

You are right. If you hear it once, you hear it a dozen times.

My response has tended to evolve into saying that I cannot comment on the other appraiser and his/her opinions since I am not doing a review of their appraisal. All I can do is defend my own methodology and conclusions that I will be very happy to do.


And then I add this: You say the other appraiser came in $20,000 more last year. It sounds like you are assuming that I am wrong and the other appraiser was right. It appears to be a simple case of you believing that the appraiser with the highest opinion of value is correct. If that is not the case, then you have to assume that the other appraiser could have been wrong and I might be right. Which is it?
 

Ruth Langkawel

Sophomore Member
Joined
Jan 14, 2002
I always ask for a copy of that appraisal - maybe there is some information that I don't know about. Only once have I gotten the appraisal. I think the rest had all lied, and were hoping I'd buy the lie and pump up the value.

I had one a few months ago that did give me the appraisal, and it was $30,000 above optimistic. I had comparables on the same block, and 2 active listings a few doors down for far less, that were not selling. Previous appraiser had used superior constructed homes in a higher priced subdivision. So I told the LO that I did not do a full fledged review of the previous appraisal, and did not know if the comparables used were the best that were available at the time, but that given the information that is available now, I cannot conclude any higher value without getting us both into trouble - "and we don't want that, do we?" That LO then said, "well, you can't win 'em all". He still orders from me.
 

Will Granger

Sophomore Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
I like the phrase an owner uses "The house over on the next lock that's similar to ours is 'going for'"... I always ask "What does going for mean?" Of course they all say that's the asking price. I always ask the seller why they are asking so little. It's a good game...the appraisal business. It's all mental...just like golf and boxing. Um hm...
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
David,

I would say: "I guess the former appraiser had sales to support his value last year." Then I would say: "Unfortunately the best comparable sales available this year were not as high." And here's the clincher: "If you have better comparable sales than the ones I used, please let me see them. I will evaluate them and, If they are actually better than mine I will consider them."

This tactic effectively tells them that 1) The Market is responsible for your lower value....not me 2) Places the burden of proof on them and not you 3) Makes them see you as cooperative instead of combative.

In other words, you can't lose. If indeed there is better Market data then use it and everybody is happy. If there is no better Market data, then they have discovered it for themselves and won't be bugging you.

In my 10+ years of appraising, I can't remember one time when there were any better comps than the ones I already used on the report.

I think a lot of non-appraiser types don't really appreciate how much effort we appraisers put into finding acceptable comparable sales. Sometimes hours and hours of tedious research, verifying, inspecting, etc. I have indeed on occasion "sweated bullets" over which comparables most represented my subject property.
 

Robert Dunkle

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Oklahoma
When owners are telling me what "comparables" are going for, I always take notes of the addresses, etc and check them out. They COULD be correct!! Rarely are, but they could be. Typically, the "comparable" is 25-50% larger, or 10-20 years newer, or compeletly renovated in an older community. Had one guy tell me of a "comparable" a block from his refinance. It was 800 sq. ft. larger, had a pool and backed up to a community airfield....It was cool to have a plane. He said it sold for $225K, actually sold for $185K. He was wanting $235K on a house that came in at $165K. They will lie or are VERY misinformed.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
It has been my experience that most home owners lie about what they paid for their home. Neighbors are always telling this home or that home just sold for a certain amount and most times it way inflated. Sometimes if I am familiar with that home sale I will correct the home owner, but most times I will just thank them and assure them I will consider that sale.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
The answer to your question has many an answer; it really depends on how much time you think your Client is worth. The first question I ask is how much are you willing to pay for the correct answer :?: :?:

Because the correct answer is within your grasp and is fairly simple, but time consuming :) Therefore, you should be agressive about your FEE!!

The correct answer does not even involve the other appraiser's work :lol:
You don't need their work :)

I'm not going to reveal the answer here 8O , as the hints have been given 8) as an appraiser & knowledgeable person (s) that you are, you will have to put on your thinking cap :lol: and see if you are the knowledgeable people that I believe you are :)
 

Charlotte Dixon

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
Tim.....Not to mention that, homeowners confuse listed with sold properties, along with....neighbor refinanced and his appraisal came in at _____. For some reason there's a mental block there regarding Sold/Settled/Closed Within One Year or Less. Either that , or they just plain don't have a clue what our job entails.
 

Lee in L.A.

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Homeowners ideas of comps sometimes make no sense at all. I have 1 subject that is a 3100 SF house, 14,000 SF lot. The homeowner pointed out 2 "comps" that were in very close proximity. One was a 8500 SF home on 1.75 acres the other a 9500 SF home on 1.5 acres. One showed a sale in 1999 for over $6 Mil, the other did not show a sale at all. Borrowers estimate of value was $1.3 Mil. Go figure where he came up with that. PFA. Most of the similar size sales were in the $600k to $900k range. There is a wide range of values in the area (Bel Aire) for similar size homes and lots, but due to things like usable lot area, view, and upgrade quality, perhaps too much money syndrome on the buyers part, but please...
:lol:
 
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