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Your Rights - Appraising Real Estate Appraisers and Appraisals

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NC Appraising

Thread Starter
Senior Member
Joined
Apr 28, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
"Appraisers are being punched up in the courts and the press for not always providing honest real-estate valuations. So what’s going on? What exactly do appraisers do?"

"Professional groups — appraisers, consulting foresters, geologists and others — may be able to do more to stand up to lenders and sellers. At the same time, they should back up their own members better and enforce their own ethical codes.
Their standards are not the problem. Look at the Appraisal Institute’s Code of Professional Ethics. Perhaps code enforcement should be changed from a peer-review process to totally independent boards."

For the full story
 
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Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
...decent article...mentions our friend Ms. Wertz in it...
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
No "perhaps" about it. Further, each state must be required to utilize Local CERTIFIED Appraisers for Reviews.


"It’s always easy to say, “There oughta be a law.” Well, maybe there oughta be."

There already is - several in fact - none of which are being enforced.
 
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Hal Mann

Senior Member
Joined
Jan 19, 2005
Professional Status
Certified General Appraiser
State
New York
This is a good article, and despite some minor inaccuracies, it states the problem simple straightforward language.

And it includes the wonderful phrase: "risky steroidal mortgage"
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Doug- IMO, Competency plain and simple. Political appointees, Clerical Staff, non-appraisers are not qualified to review nor required to adhere to USPAP when rendering a disparate Opinion of Value unless Licensed or Certified.

Further, a Cert Res is not qualified to review a Gen Cert unless the report(s) in question are Residential. Conversely, a Gen Cert who has done 5 residential appraisals in a 20 year is no more qualified to review (with exception of technical USPAP compliance) than the office secretary.

Peoples LIVES hang in the balance. Qualified Peer and Field Review (including geo-competence) should be the Rule - not the exception.
 
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Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Doug- IMO, Competency plain and simple. Political appointees, Clerical Staff, non-appraisers are not qualified to review nor required to adhere to USPAP when rendering a disparate Opinion of Value unless Licensed or Certified.

Further, a Cert Res is not qualified to review a Gen Cert unless the report(s) in question are Residential. Conversely, a Gen Cert who has done 5 residential appraisals in a 20 year is no more qualified to review (with exception of technical USPAP compliance) than the office secretary.

Peoples LIVES hang in the balance. Qualified Peer and Field Review (including geo-competence) should be the Rule - not the exception.


Agreed 100%. I will also add that Rural Appraisers should be review by Rural Appraisers. Just because you have the data base for the area does not prove geo-competence.

Just my thinking.
 

Oregon Doug

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Joined
Jan 15, 2002
Professional Status
General Public
State
Oregon
Mike – My point of contention is your assertion that reviews MUST be performed only by CERTIFIED appraisers. “Must” doesn’t allow much leeway.

My observation is that the inconceivably low entry requirements imposed on the appraisal profession during past years has resulted in the presence of an overabundance of seriously under qualified practitioners; thus being certified, in and of itself, is no guarantee of proficiency. I know numerous certified appraisers who can’t appraise their way out of a wet paper bag.

It certainly is true that a reviewer must be competent in the whole appraisal process and possess a functional knowledgeable of USPAP; qualifications trump certification.

There are a few old gray haired appraisers out there that have retired or are about to – some have dropped/are dropping their credentials. Many came to the profession back in the days when one had to demonstrate prowess before admission to the league, but our profession doesn’t recognize this asset. What a shame. It’s true that qualified peer and field review ought to be the rule. A lot of these old guys relish the thought of giving back to the profession (that & just getting out of the house.)

Oregon Doug
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Doug- I agree with most of your comments. Regarding "much leeway" - I suggest those Reviewing appraisals must be held to the USPAP. Absent Certification OR License - an Appraiser wrongfully accused by a non-licensed has essentially no recourse when only the Respondent is held to the USPAP. True, the quality of Review is the issue. I assert mandatory compliance with USPAP Standard 3 by a Reviewer should be the standard for any State Review.

Support for this opinion are the many postings on AF involving reviews performed by non-licensed Municipal staffers and/or board members who are NOT required to adhere to USPAP.

(EXACTLY the same argument against Lender utilization of processing clerks, both domestic and foreign, should be made as well).

In the absence of license or certification, qualifications which trump same include longevity on a board?

I would fully, and vocally, support creation of an ASC Designated Forensic Review Board, with perhaps Appraiser Emeritus Certification, comprised of proven Senior Appraisers, in each State, for those who wish to continue to contribute to the Industry.


The FRB should be adequately funded to provide access to the necessary LOCAL data and services of qualified, vetted, LOCAL Certified Field Appraisers required to evaluate not only Technical UPSPAP compliance but comparable selection and accurate physical measurement of subject properties (when feasible).....the basis of the two most prevalent complaints, and lawsuits, against Appraisers.

In the interim, I'm not aware of any Age Restriction prohibiting those individuals you refer to from obtaining a current license. If there are, then that TRULY is a shame.
 
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Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Such lenders have turned themselves into middlemen
We are their only roadblock to the fast buck.

Mineral geologists estimate the volume of underground resources-minerals, coal, oil and gas. Bogus reports prepared for sellers that inflate the resource or fail to mention important discounting factors are not unknown.
In oil and gas, reserve estimators (which is what he is referring to) are under enormous pressure. Why? Because many companies are no longer holding their reserves and selling them. They are estimating the reserves, then the reserves are pre-sold at a discount to investors. These are called Multiple Limited Partnerships (MLP) or "Magic Little Pills". Obviously, the higher the reserves the more they can pack in their magic little pills... This is especially true for the shale gas plays...which I predict will explode into a spate of lawsuits about the time gas prices settle down to a lower than expected rate.

The problem is the same. Play ball with the bosses or they'll cram the bat up your backside. no amount of 'regulation' or "certification" or 'education' will change that.
 
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