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I'm not sure if you read my entire post, but I was actually able to appeal his appraisal and the field review appraiser agreed with my comps (from a <<gasp>> non-appraiser). The thing about my comps was they were not a year old and were actually comparable. The fact that you would come to what seems to be a knee-jerk defense of the original appraiser where you haven't even seen the appraisal I think speaks volumes.
If a property has been exposed to the open market (i.e. listed in MLS) for a reasonable period of time, after which a buyer and seller agree to a sale price, an appraiser better have a compelling reason for concluding a Market Value that is NOT the same as the contract price! After "The Market" has spoken, appraisers have an obligation to provide documented support that explains the activity of The Market to the lender. It is ludicrous that an appraiser can kill a deal by concluding a value that is 5% below contract...NOBODY can be that accurate! Legitimate buyers that have searched the market are the best ones to determine what a certain property is worth, to them. Appraisals, by their very nature, are always a look in the rear view mirror.
If appraisers could give a range, that would seem to make more sense than relying on one person's opinion for such an important transaction. Instead, the big appraiser petition out there is about getting paid more.
No, I missed the part about the review and I apologize for that. You are right about the kneejerk reaction. But we are constantly under fire by non-appraisers and that is getting old.
I agree with being able to give a range. That certainly makes more sense.
The petition for Customary and Reasonable Fees is something that is very different from anything else pertaining to appraisals. That is something we can actually do something about. The ability to provide a range is not.
o If it's not too late, take before and after pictures and provide supporting detail about the improvements you made (including cost of materials and labor). Receipts are helpful, too.
To be honest, it doesn't make any difference to me what kind of improvements have been made and what the condition of the property was prior to my appraisal.
What I am concerned with is what the condition is on the date I come out to the property, in this case, the Effective Date of the report.
My last few appraisal experiences have been pretty good, both my sale, purchase and the refi. All appraisers were very responsive and I thought did good work. I worked for a company that was a supplier of information/services to the appraisal industry for about 6 years, right during the bubble. Appraisers were really getting pushed around back then and I know how hard it was for them to survive in the sorrupted world that banks drove. But, I also understand how subjective the appraisal business can be, but it is better than not having an appraiser, I believe.
Thank you for understanding. And we are still being pushed around, more and more demands are put on us and our expenses increase while our income continues to decrease.
To Annemeike: Question. So, if two center hall colonials that were the same age as ours (35 years sold) and neither one of them did major updates (small boxy rooms, no new windows, original front door, same bathrooms, etc), would you use those comps and say my house was in par with theirs (we took down walls for an open concept feel, new windows, new doors, new bathrooms, new kitchen, etc. etc.)?
But we are constantly under fire by non-appraisers and that is getting old.
No argument here on that--appraisers are getting pressure from all sides. The lender in my sale (the same one that ordered the field review), has a reputation for pressuring appraisers to lower their valuations and blacklisting and reporting them. I'm sure it feels like you can't win.
I wasn't trying to criticize all appraisers. I was just venting about my particular ordeal and not really even necessarily just blaming the appraiser for it. I wouldn't be surprised if in the past he has had a lender/reviewer tell him his appraisal was too high.
I just need to count myself lucky it all worked out and let go...
To Annemeike: Question. So, if two center hall colonials that were the same age as ours (35 years sold) and neither one of them did major updates (small boxy rooms, no new windows, original front door, same bathrooms, etc), would you use those comps and say my house was in par with theirs (we took down walls for an open concept feel, new windows, new doors, new bathrooms, new kitchen, etc. etc.)?
Appraisers get tired of saying this, but it depends. Would I use those sales as comps instead of the prairie school classic or craftsman from across town? probably. I would have to develop condition adjustments. Are there other, more similar sold properties available in competitive neighborhoods? then probably not.
If a property has been exposed to the open market (i.e. listed in MLS) for a reasonable period of time, after which a buyer and seller agree to a sale price, an appraiser better have a compelling reason for concluding a Market Value that is NOT the same as the contract price!
This just seems like a ridiculous statement. I would think it would be better if appraisers never even knew what the contract price was.
To Annemeike: Question. So, if two center hall colonials that were the same age as ours (35 years sold) and neither one of them did major updates (small boxy rooms, no new windows, original front door, same bathrooms, etc), would you use those comps and say my house was in par with theirs (we took down walls for an open concept feel, new windows, new doors, new bathrooms, new kitchen, etc. etc.)?
I might use that as a comp if there was nothing else available BUT I would adjust for condition.
I wouldn't be surprised if in the past he has had a lender/reviewer tell him his appraisal was too high.
.
I am sure he has. When that happens to me, this is what my answer is:
"I have performed this valuation with due diligence using my training and experience. How much money you are willing to lend on this property is an Underwriting decision and if that amount in lower this does not automatically mean that my Opinion of Value is too high."
You see, frequently a lender's decision on how much to lend hhas to do with other things, not the appraisal. But the appraisal is the easiest thing to hang it on.
In any event, having a lender tell an appraiser the appraised value is too high should mean absolutely nothing to the appraiser and should not influence any future appraisals.
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