My name is Kenneth J. Miller and I am not a killer. I hear it all the time regarding appraisers killing another deal because the appraisal report came in too low. My wife used to work for a mortgage broker and I'd hear it all the time from loan officers in her office. This drives me crazy. Don't shoot the messenger. It's not the appraisers fault a property isn't worth enough to make the loan work. Our job is to give our opinion of value on the property. It's supposed to be an honest and supported opinion. We can't just make up stuff to get a loan approved. There are appraisers out there who do that sorta stuff and you read about them all the time as the real estate fraud rings get busted. This is a major reason the foreclosure pandemic has infected this Nation. Lenders big and small are dropping like flies from all of the poisonous loans they took on. You don't blame the dentist when he tells you that you have a cavity. You don't blame your accountant when she tells you your tax refund isn't as large as you had hoped. You don't blame the scale when it registers 10 extra pounds. Why get mad at the appraiser for being honest and telling it how it is. So the next time a loan doesn't go through because the property didn't appraise as high as it needed to, please don't blame the appraiser. Most of us are really nice people.
 
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5 Comments on Stone Cold Killer

JAN
12
2008
109,636 Points 3 Featured Posts

Hey Kenneth -

I'm sure I speak for all of the appraisers out there when I say you've hit the nail on the head.

There are a couple of things I appreciate in regards to value these days:

  • Honest borrowers and loan officers
  • Educated borrowers and loan officers
  • Honest appraisers
  • Underwriters that are on top of appraisals than in the past (yes, I said it... it keeps us all honest and LOs now finally recognize it)
  • AVMs (again, I see you guys tuning me out, but bear with me... you can always point an LO to an AVM if they're looking for a 'comp search')

Thanks for the post -

 
11:15am • #1

I don't like turning work away, but I agree with you Sara on pointing LO's to an AVM if they are trying to 'hit' a number. I also tell them that if they want an appraisal the represents "fair Market value" then they can call me back.  I usually get a call back once they realize that even in this market, hitting their needed value is getting more and more difficult!!!!

Ken - its rough to always have to be on the defense and I liked your analogies!  And most appraisers I know, even some that are rather non-social, are for the most part nice, good people!

I'm liking how this market is weeding out some of the riff raff, but I like that I actually have time to do reports much more thoroughly now, to some degree!

Enjoyed the post!

4:47pm • #2
JAN
13
2008

Ken  -  Very well put.  Unethical appraisers (and others in the r/e industry) have contributed to the current market conditions and it will take time to fix.  LO's should be more aware of the general market trends a borrower is in and advise them of what to expect if the value comes back low or marked declining.

Sara  -  Referring to an AVM for a comp search is a good idea.  It would be nice to get calls for "market trend checks" or "market condition checks" for a change.

 
1:01pm • #3
Welcome to my world. lol   I hear this all the time, but I call it like i see it.
6:23pm • #4
MAY
15
2008
2 Featured Posts

Amen Ken,

I agree with you 100%, but as long as there are appraisers out there that "hit the number" when asked, then us honost appraisers will be judged as not "working with them" to make the transaction smooth.  We must refuse to do work for those bad lenders that force us to hit values.  If they don't have appraisers that will do work for them, they may dry up and go out of business and hopefully leave the ethical lenders.
10:37pm • #5


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Kenneth Miller, NW Ohio FHA Appraiser

Fremont, OH

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Miller Appraisals

Address: 1028 Bush Street, Fremont, OH, 43420

Office Phone: (419) 680-6739

Cell Phone: (419) 680-6739

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FHA Information & Updates brought to you by a Northwest Ohio FHA appraiser. I cover the following 8 Counties: Erie, Hancock, Huron, Lucas, Ottawa, Sandusky, Seneca, & Wood. View Kenneth J Miller ken.miller@miller-appraisals.net's profile on LinkedIn
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