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Top 10 things a Real Estate Appraiser Does Not want to hear

By
Real Estate Agent with Certified Residential Appraiser- West Palm Beach Real Estate

Ok, another top 10 list. Please note that I have put a top 10 list out before, so keep your pointing fingers tucked in your pockets.. (unless you're David Letterman).

The tone of this post is.. "Humor me to make a point".  -Me  ok! here goes.

 Top 10 things a Real Estate Appraiser Does Not want to hear.. especially this Palm Beach Real Estate Appriaser  (and what we may be thinking as the words slide of your tongue)

Ok, A top 10 David Letterman drumroll please...

#10.  I need a 'comp check' or 'current sales data check'  Me - See Advisory Opinion #19- (or AO-19) Ask the Realtor for previous sales.

#9.   'The other appraiser said that its worth $xxxx, can you check on that for me?' Me -And you telling me this why? Use the other appraiser. See AO-19

#8.   'I have comps that you can use.'   Me - 'and I will tell you how to structure your loan'

#7.  'This house is better than that sale'(Having never seen the house or the MLS sheet)  Me -if you say so, send the order.. its COD; cash or check, report goes out when the check clears.

#6.  'So what if there is a property on the market for 250 days similar to the subject at xyz value'  Me- ok, that makes sense. that one hasn't sold, but this is worth more.  See AO-1

#5.  'I need to change to lender on that report, by 5pm'  Me- That's $250 for a new file, you'll save $75 because I did the sketch already. I need to go back out to the property, I have an opening tomorrow, I'll have to inspect the inside. See AO-3

#4.  (Home owner) 'I built a jacuzzi in the middle of my living room! No one else has one!' Me- And? This is a good thing?  Hope you enjoyed it. see this post

#3.  'I don't have a better contract, You can't read the contract?'  Me  I need a legible copy of the contract, this has been faxed a dozen times. (See AO-1 & Standard 1-5)

#2.  'I have a lot of work for you if you 'take care of me' Me  Who's gonna take care of me when they take me license away for collusion or fraud? <:^Ð

and the number 1 thing a real estate appraiser does NOT want to hear..

#1.  'Do you invoice? We will pay you at closing'  Me  yeah right. you pay me and get paid back at closing.

 

FYI:

Advisory opinion #1- The Uniform Standards of Professional Appraisal Practice (USPAP) and supplemental standards issued by others contain sales history requirements that obligate appraisers of real property to analyze and report pending and recent agreements, options, listings, and sales involving the property being appraised. 

Advisory Opinion #3- Regardless of the nomenclature used, when a client seeks a  more current value or analysis of a property that was the subject of a prior assignment, this is not an extension of that prior assignment that was already completed - it is simply a new assignment.
also-The term "Recertification of Value" is often mistakenly used by some clients in lieu of the term "Update." A Recertification of Value is performed to confirm whether or not the conditions of a prior appraisal have been met. A Recertification of Value does not change the effective date of the value opinion. If a client uses this term in an assignment request that includes an updated value opinion, then it constitutes a new appraisal assignment that must be completed as discussed in this Advisory Opinion.

Advisory Opinion #19- Unacceptable Assignment Conditions in Real Property Appraisal Assignments  (aka You're asking me to break the law)  USPAP-AO#19- Appraisers report that the caller usually makes it clear that they do not want the appraiser to do any fieldwork. Some callers refer to the service requested as a "comp check" while others refer to it as a "preliminary appraisal" or use some terms other than appraisal (such as preliminary evaluation, study, analysis, etc.). Some callers indicate that if the numbers will not work, the appraiser can send a bill for research services or a "preliminary" inspection. Other callers promise future assignments if the appraiser can make the present deal work.

Standard Rule 1-5When the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business: (a) analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal; and (b)  analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal.

There are 10 Standards and 10 Statemets which make up the USPAP (Uniform Standards of Professional Appraisal Practice). There are also and additional 29 Advisory Opinions that are recommendations and supplemental to USPAP. Although they are considered addenda to USPAP, nonetheless they are used for illustrative purposes..
"Advisory Opinions issued by the Appraisal Standards Board (ASB) do not establish new standards or interpret existing standards. Advisory Opinions are issued to illustrate the applicability of appraisal standards in specific situations and to offer advice from the ASB for the resolution of appraisal issues and problems."
 

** The above is for illustration purposes of daily activities. Not all brokers work like this, but a lot of this is common practice and appraisers need to be aware of USPAP compliance in this and all matters in developing a real estate appraisal. 
PS. Get the Realtors to pull the comps for you. They have access to the MLS. If I do it, you're getting a bill or you're losing an appraiser. **

West Palm Beach Real Estate Appraiser

 

 

USPAP is here thanks to the AppraisalFoundation.org

Comments(64)

Ruth Jacobs
Quantum One Realty - Palm Beach Gardens, FL
North Palm Beach, Real Estate Specialist, CDPE, SF
Great insight  in the appraiser's position given in a humorous manner.  Will try to remember these things when working with other appraisors.  Nick, if we are guilty of any of these, you can just say the number and we'll get the point.
Feb 24, 2007 10:17 AM
Nick M.
Certified Residential Appraiser- West Palm Beach Real Estate - West Palm Beach, FL
Realtor-Appraiser in West Palm-South Florida Real Estate Appraiser
Hey Ruth.. humor is all i have left!! well that my good looks and charm :)).  working with 'others' appraisers.. i think that is a joke! right?  hee heee just kidding. i kid you, i kid. no but really, what other appraisers! ;)  i wont remember the numbers, but you may just get the hint from a long pause or >sigh<. :))   see you later alligator!
Feb 24, 2007 11:42 AM
Matt Lemansky, Certified Residential Appraiser, SoCal
Matthew J. Lemansky, CREA - Long Beach, CA

Great post...I've heard every single one of these a number of times.  My favorite is #9, especially when they fax the old report to me along with the order, like I would use it at all (other than printing it, flipping it over and using it as scratch paper)...lol.  #2 reminded me of an order I received (and rejected) a few weeks ago in which the broker stated he had 10 appraisals he needed completed, and once I took care of him on this initial one I would get the rest. 

Mar 10, 2007 07:05 PM
Nick M.
Certified Residential Appraiser- West Palm Beach Real Estate - West Palm Beach, FL
Realtor-Appraiser in West Palm-South Florida Real Estate Appraiser

Hey Matthew, welcome to Active Rain! :)  good to have anther appraiser on board. Check out our little appraiser group in the Groups section.  We welcome your input. glad you enjoyed this post.. we all get the same things to deal with.  Look forward to your contributions on AR.

From the movie 'Along Came Polly' and the blonde character/sidekick.. "LET IT RAIN!"  ;)

lator gator..

Mar 11, 2007 01:18 AM
Anonymous
Kathy Lewellen

Thanks for all the great information.

Apr 11, 2007 09:27 AM
#49
Carol Flores
4 Square Home Staging & ReDesign - Fort Worth, TX

Nick - Thanks for the laugh! My fav is #4 - the house I encountered the 'jetted tub' was in the master bedroom, because they knocked the bathroom walls out to 'open up' the space!! and it was a DIY job!

Another for your list: "We are closing on Monday...here's your check but hey can you wait until next Friday before you cash it? sure and your report should be done by then too-LOL

Apr 16, 2007 05:18 PM
Greg Myers
G L Myers Real Estate Services - Chapel Hill, NC

Carol, it does get tiring dealing with "Wimpy" who will "Gladly pay me on Tuesday for an appraisal today" doesn't it.

Love the list Nick. Nice job of promoting understanding. I especially appreciate numbers 1 & 2. I always laugh when I get the "We have a lot of work in your area" line. I will gladly do all the work they want to send, but don't try to bribe me (especially with a lie.) 

Apr 18, 2007 02:40 AM
Sancia Tobiason
Gustafson & Associates - Bellingham, WA
Wonderful entry! Its too bad that appraisers and other RE professionals speak such different languages... I love this site so that as appraisers we know we are not alone in the appraisal world when dealing with such odd requests and such. Thank you!
Apr 19, 2007 05:11 AM
Nick M.
Certified Residential Appraiser- West Palm Beach Real Estate - West Palm Beach, FL
Realtor-Appraiser in West Palm-South Florida Real Estate Appraiser

Kathy.. you're welcome :)) see ya later gator!

Carol.. i loved it..  look at all this space without that wall (don't mind the exposed plumbing and watch out, dont touch that wire, its 'hot'. :) haha 
this made me laugh... :here's your check but hey can you wait until next Friday before you cash it? :   uh yeah, and tell you what, I'll even date the appraisal for the monday after that! haha! i'm kidding, i kid. see #1 :)

Greg.. you read my mind. I was going to use that Wimpy line in the post. you cracked me up with that. so true, brother, so true..! :)) i can hear it being sung by Wimpy now..! haha!

Hi Sancia.. we do speak different languages, and i even speak one of my own. its called reality speak! haha!  this is a great place. WELCOME. :)  you can use Active Rain for fun, to mingle.. and to vent. oh yeah to promote understanding.   i have the please of being a REALTOR(R) also, and i know the training and education differs. it helps make me more patient.. which is 'little patience'.  you'll feel right at home here Sancia. looking forward toy your posts.:)

Apr 19, 2007 06:48 AM
Dorothy Strand Gorman
KING COUNTY RESIDENTIAL APPRAISAL - Bellevue, WA

great humor!  things are changing.  i can't remember the last time i had someone ask for a "value check."  we are also protected here in washington by the dept of financial institutions, for payment and gladly bill at closing!  i guess i am feeling lucky up here in washington!

Apr 24, 2007 02:57 AM
Nick M.
Certified Residential Appraiser- West Palm Beach Real Estate - West Palm Beach, FL
Realtor-Appraiser in West Palm-South Florida Real Estate Appraiser
Hi Dorothy.. welcome!! you lucky appraiser you!! :)  hope to see you around plenty!
Apr 24, 2007 03:51 AM
Richard Kimball
Keller Williams Realty New Orleans - New Orleans, LA
Great list. I'll make sure to look back at your post when I need to give that fly by night mortgage company a piece  of my mind.
Sep 24, 2007 04:13 PM
Nick M.
Certified Residential Appraiser- West Palm Beach Real Estate - West Palm Beach, FL
Realtor-Appraiser in West Palm-South Florida Real Estate Appraiser
Hi Richard, thanks for stopping by. This is one of those posts to let of some steam in a fun way. We all go through this, so I decided to tie it in with some USPAP and AO's. :)  hope you enjoyed it.  good luck in this market brother! :)  and welcome to Active Rain!
Sep 25, 2007 12:41 AM
Alisa McKeel Willson
Appraisal Pros in Texas - Huntsville, TX
Certified Res. Appraiser

Nick, I too am a newie here on Active Rain and I want to thank you for this post.  I'm an

appraiser also and I couldn't have said this better myself.

 

Alisa

Sep 26, 2007 07:39 AM
Nick M.
Certified Residential Appraiser- West Palm Beach Real Estate - West Palm Beach, FL
Realtor-Appraiser in West Palm-South Florida Real Estate Appraiser

Hi Alisa, I think all appraiser can relate to something in this post. Its the same ol' jazz from different people. Sometimes it's almost funny.. depending on how much work you have! yikes!!

glad to have another appraiser around. great first post btw! :)

don't forget to join the appraiser group!

Sep 26, 2007 12:52 PM
Nick M.
Certified Residential Appraiser- West Palm Beach Real Estate - West Palm Beach, FL
Realtor-Appraiser in West Palm-South Florida Real Estate Appraiser

Hey Michael, thanks for your feedback. IMHO,  in an increasing market, a REALTOR(R) will price higher than the next listing, due to the speculation or assumption of an increasing market. You call it 'sideways', I call it 'forward'... to me, its the same thing really. if the market is declining, then REALTORS(R) price lower to be competitive for where the market is 'going', hence my use of the word 'forward'. Calling it sideways, IMHO, implies at the very moment of the listing only.  So hopefully we can agree on that difference of wording being a minimal detail.

I do feel we valuate mainly on closed sales. Sure, in our diligence (standard 1-1) we do look at actives and pendings, but normally you'll find closed sales in a report, with a pending sale here and there. I do agree with what you're saying, in a sense, as actives (and their DOM's) and pending are reviewed and considered, but it was a general statement in response to Frank that appraisers look 'backwards' (meaning closed sales) although we do consider DOM's and pendings. It's all in the wording.. and again, I do agree with what you say,..  that we review past, present and future.. but the comps are closed sales, and the others are just 'considered' in the overall approach of where to conclude within the closed sales. (therefore my reference to looking back).

I welcome your thoughts and opinions to further explore this, as we all learn and gain insight from different viewpoints. This isn't a 'who gets the last word' scenario. :)   again, thanks for stopping by.. and do me a favor and handle that link issue in your comment above.

Oct 03, 2007 03:48 PM
Nick M.
Certified Residential Appraiser- West Palm Beach Real Estate - West Palm Beach, FL
Realtor-Appraiser in West Palm-South Florida Real Estate Appraiser

Hi Mike, back from the late night dog walk. I guess it depends on your point of view, and blog author.. my rules are a little tighter, since i don't link in anyone's posts, except outside articles. call me crazy.

In some areas in FL, I would call it stable-to-slight-decline. In my experience and training, we weigh the sales mostly, with the actives and pendings influencing the final value within the post adjusted price ranges. It's just how I've always done it. Additionally, most REALTORS(R) won't tell me what the property is actually pending for, you just see the list price. I don't think that, for example, some listings that are 'dream prices' should have influence, but considering that you brought up a good point by mentioning the principle of substitution, you would definitely use that approach more in a declining (or especially in heavily declining) market. good point on that Mike and I would agree with you in that scenario.
I like to use the most recent comps available and stay away from time adjustments, but rather take the market into consideration in my overall reconciliation. :))

I'll be subscribing to your blog and reading up on your ideas in your future posts. We need more appraisers that are willing to come out and talk about these things. In the end, it helps bridge the gap between appr's and REALTORS(R)... (and the gap within my brain!) 

Thanks for your perspective and feedback..! 
and IMHO, mean In My Humble Opinion  :^)    (or IMO if your not humble :)

Oct 03, 2007 04:43 PM
Nick M.
Certified Residential Appraiser- West Palm Beach Real Estate - West Palm Beach, FL
Realtor-Appraiser in West Palm-South Florida Real Estate Appraiser

Hi Mike, funny thing.. i was just reading your profile and thinking that I needed to come back and state that you're much more experienced appraiser than I. when i got here, I noticed it didn't need to be said.
I think you have a post in the works there, big dog.

please don't say the word 'testify' around me too often. :)  so much for a fun top 10 list!  i'll go stand in the corner now.. ha!

 

Oct 03, 2007 05:35 PM
Nick M.
Certified Residential Appraiser- West Palm Beach Real Estate - West Palm Beach, FL
Realtor-Appraiser in West Palm-South Florida Real Estate Appraiser
hey Mike, YOU are the man. I wanna be like you when i grow up.   now that 'winking' is a little disturbing..!! HA!
much thanks for your contribution. I'm subscribed to your blog.. lat the knowledge down, baby!! :)
Oct 09, 2007 10:01 AM
Shane Leady
Apella Business Solutions - Zolfo Springs, FL

Nick,

Late to the post but WOW! what a wonder!  I will be forwarding this one to my appraiser frineds in the future!  Thanks for the item.

Oct 12, 2007 10:40 AM