[KathrynAragon]

I am the executrix of my mother's estate. She has some rural property in SW Arkansas. It was appraised five years ago as part of an estate she inherited. I am about to list it but had an offer on it before listing it. The offer was initially very low. All the heirs have agreed to honor a five year old appraisal (which was done without a contract as just part of an estate) so I did not take the offer. The potential buyers came back and offered the amount on the five year old appraisal on the condition that the property appraised for that amount. Of course the bank won't loan more than the property appraises for.

They had the property appraised and the new appraisal came back very, very low. It's for a bit over five acres, two barns, improved property with road frontage. One of the barns is very large and is less than 20 years old and I do not believe that the entire property appraised for more than the value of that one barn, which is in excellent condition. In fact, I don't believe that the entire property was appraised even for the value of one barn. I do not believe that the appraiser went into either of the barns, which are locked.

The potential buyers tried to get me to sign a contract saying that I would honor the value of the appraisal but I didn't sign that, thank goodness, so we have no contract. By the way, they immediately offered to pay more than the appraisal for the property but I said no thanks, and just go pick up your earnest money because we have no contract now, apparently.

I do not know who they got to appraise that property but I know who appraised it five years ago. Unfortunately, he's deceased now. But he seemed like a decent, honest sort of person.

So I guess my question is this - who do appraisers answer to in the state of Arkansas, if anyone? Has anyone ever filed any sort of investigation or complaint on an appraiser in Arkansas?

[Rakin]

In Texas they are Licensed and report to the TX Real Estate Commission like many states. I would be Arkansas is similar or the same.

Check out this site: https://www.arkansas.gov/alcb/

The primary purpose of this website is to be a resource to residents of Arkansas seeking information about real estate appraisers. The Arkansas Appraiser Licensing and Certification Board is charged with protecting the public interest through regulation, examination, and licensing of Arkansas real estate appraisers and the registration of Appraisal Management Companies (AMCs). We approve and monitor pre-licensing and certification education, experience and testing, as well as approve and monitor continuing/qualifying education for real estate appraisers.

It is our intent to maintain a system of licensing and regulating real estate appraisers that is in compliance with federal guidelines and results in license holders that have verified adequate education, experience, and have demonstrated a competency to provide quality service consistent with their specific credentials.

[Hollynla]

It doesn't make much sense that it appraised for less than it did 5 years ago. The bank (lender) is the one who orders the appraisal. I've had some appraisals come in low, and a second was ordered from another appraiser and came in much higher. There isn't much you can do as the seller about the appraisal, but if they will let you see a copy of it, you can look at the comps he used since that's what influenced the price.

[EldoMasterBlaster]

https://www.arkansas.gov/alcb/

Arkansas Appraiser Licensing
& Certification Board
900 W. Capitol Ave,
Little Rock, AR 72201-3108
Telephone: (501) 296-1843
Fax: (501) 296-1844

[thebigW]

Appraisers are licensed in every state. Complaints to the state that "I didn't like the number" (especially from someone who isn't an intended user) usually don't go anywhere.

Why don't you get an appraisal yourself? Without a professional review, it's impossible to say if either or both appraisals are credible.

[KathrynAragon]

Originally Posted by thebigW

Appraisers are licensed in every state. Complaints to the state that "I didn't like the number" (especially from someone who isn't an intended user) usually don't go anywhere.

Why don't you get an appraisal yourself? Without a professional review, it's impossible to say if either or both appraisals are credible.

My mom paid for the first appraisal five years ago. I spoke with a local broker who, when I told him who my mom used, told me "That guy's word is gold."

I have a copy of the second appraisal and I will be filing a complaint. One of the buildings is a guest house and the new appraiser didn't even go inside either building. I think this was just a drive by appraisal. In fact, I know it is because it says so on the appraisal. She also said that both buildings on the property are old and deteriorated but that is not true. One barn IS old (but the roof is good). That's also the guesthouse. The other barn is less than 20 years old and is in great shape. It's behind the older barn so she probably didn't see it since she just drove by the property.

Also I notice that her only comps were unimproved properties but this property has a guest house, a barn, plumbing, electric and gas so I wouldn't call it unimproved property. She also said that electric and water "are available" with no mention of gas but all are easily available and in fact, the electricity is on and running.

My gosh, one building is worth more than the total of the appraisal. I can't imagine real estate going DOWN in value over the past five years.

[Hollynla]

Originally Posted by KathrynAragon

My mom paid for the first appraisal five years ago. I spoke with a local broker who, when I told him who my mom used, told me "That guy's word is gold."

I have a copy of the second appraisal and I will be filing a complaint. One of the buildings is a guest house and the new appraiser didn't even go inside either building. I think this was just a drive by appraisal. In fact, I know it is because it says so on the appraisal. She also said that both buildings on the property are old and deteriorated but that is not true. One barn IS old (but the roof is good). That's also the guesthouse. The other barn is less than 20 years old and is in great shape. It's behind the older barn so she probably didn't see it since she just drove by the property.

Also I notice that her only comps were unimproved properties but this property has a guest house, a barn, plumbing, electric and gas so I wouldn't call it unimproved property. She also said that electric and water "are available" with no mention of gas but all are easily available and in fact, the electricity is on and running.

My gosh, one building is worth more than the total of the appraisal. I can't imagine real estate going DOWN in value over the past five years.

Was this done by an appraiser or was this a BPO (broker price opinion) done by an agent? Often time, drive bys are done by agents. I've done quite a few. Odd that this is what the lender requested. This should have been a full appraisal with pics inside and out. I would first speak to the lender and let them know that none of those things were taken into account and that some of the info on the appraisal was incorrect such as utilities. They can have the appraiser go back out. I agree with previous poster, you won't get anywhere filing a complaint.

[KathrynAragon]

Originally Posted by Hollynla

Was this done by an appraiser or was this a BPO (broker price opinion) done by an agent? Often time, drive bys are done by agents. I've done quite a few. Odd that this is what the lender requested. This should have been a full appraisal with pics inside and out. I would first speak to the lender and let them know that none of those things were taken into account and that some of the info on the appraisal was incorrect such as utilities. They can have the appraiser go back out. I agree with previous poster, you won't get anywhere filing a complaint.

I probably won't get anywhere but hopefully at least the appraisal board will contact the appraiser and she will know she's being watched.

I don't really care anything about that low ball offer anyway, or dealing one way or the other with the people who made the offer. I'm just going to list the property. I didn't like dealing with the estate attorney on it anyway - he just kept telling me to talk with the potential buyers. Ugh. I have bought and sold tons of property over the years and NEVER had to deal directly with a potential buyer so no thanks.

It doesn't surprise me that the second appraiser would say that "both buildings are old" because she couldn't even SEE the second building, which is behind the older first building. She also had no way of knowing that the electricity is running in both buildings, because she didn't get out and look at either. She assigned ZERO value to the barns. She said so in the appraisal.

The second appraisal was by an actual appraiser who is also a broker.

Also, I don't think she took into consideration that there is a ton of road frontage. With the first appraisal, the exact amount of road frontage for all the comps is listed, and there are more comps - no mention of road frontage on other three comps in the newer appraisal.

The first appraisal was much more thorough.

[Hollynla]

Originally Posted by KathrynAragon

I probably won't get anywhere but hopefully at least the appraisal board will contact the appraiser and she will know she's being watched.

I don't really care anything about that low ball offer anyway, or dealing one way or the other with the people who made the offer. I'm just going to list the property. I didn't like dealing with the estate attorney on it anyway - he just kept telling me to talk with the potential buyers. Ugh. I have bought and sold tons of property over the years and NEVER had to deal directly with a potential buyer so no thanks.

It doesn't surprise me that the second appraiser would say that "both buildings are old" because she couldn't even SEE the second building, which is behind the older first building. She also had no way of knowing that the electricity is running in both buildings, because she didn't get out and look at either. She assigned ZERO value to the barns. She said so in the appraisal.

The second appraisal was by an actual appraiser who is also a broker.

Also, I don't think she took into consideration that there is a ton of road frontage. With the first appraisal, the exact amount of road frontage for all the comps is listed, and there are more comps - no mention of road frontage on other three comps in the newer appraisal.

The first appraisal was much more thorough.

Are you sure? This wouldn't make sense. How do you know it's an appraiser?

[KathrynAragon]

I mainly want to send her a reminder that she is accountable to someone outside the small world of Magnolia, Arkansas.