- Start reporting mistrustful appraisal reports to the authorities. Appraisers who "make the
number" are destroying the sanctity of the appraisal profession,
while honest "non-conforming" appraisers are blacklisted.
If your in possession of a bad/fraudulent appraisal report, then:
Email the report and your comments to our committee. The committee members, if
in agreement after reviewing the work along with your comments we will prepare a
statement to the state licensing authorities demanding that said
appraiser be investigated. Our committee will support you and pursue
that the appraisers license be reprimanded if not revoked by the state.
A disreputable appraisal report is written when the
appraiser neglects to use similar/comparable sales surrounding the property to
be appraised and instead elects to use distant comparables (outside the area of
where the property is located) in order to "make the number". The values stipulated in these reports can
not be supported as a true
value.
A BAD appraisal is one where there is absolutely NO SUPPORT
for the numbers concluded as a value range is so far apart that no reasonable
persons could agree on or even begin to conclude a valuation estimate.
*Bad comparables are sales that are
far away (to “make the number”), when alternative sales were available nearby,
unless and excepting, unusual property characteristics were inherent, wherein,
the subject was much larger in square footage then the nearby comps, or perhaps
the lot size was considerably larger than the neighborhood predominance of
sales. Prudent judgment should be exercised to ascertain that the comparables
chosen properly reflect the nature and the attributes of the property being
appraised. Waterfront properties oftentimes require an expanded search area.
Appraisals are brain puzzles that necessitate looking at elements of
commonality, and elements of differentiation, and making logical sense of such
similarities, and dissimilarities to derive supported reasonable conclusions of
value.
Remember, an appraisal is a supported opinion of value; not just an opinion of value.
SOLUTION:
Report these appraisers to the licensing
authorities.
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