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Editor’s
Note: "Live
and Learn" is excerpted from the new issue of Working RE,
now mailing. (Read more www.workingre.com/workingre/toc.pdf)
Live
& Learn
Avoiding Common Mistakes
Incompetence or fraud? According to
Larry
Disney, Executive Director, Kentucky Real Estate Appraisers Board, that is a question
that regulators across the nation are grappling with as they sort
through the growing number of complaints against appraisers. The
question is not always clear cut.
 |
When
recent
sales used as comps turn out to be "flips" with
inflated values, for example. Changes reflected in the new Fannie forms are specifically geared to make "innocent mistakes" less likely and to hold appraisers more accountable. Since most appraisers who bend the rules do so not to make a killing but just to keep orders flowing, one question Disney believes worth asking is: "Is this really worth my license?" |
As
audits of the banking community rise, so are an increasing number of
appraisals subject to scrutiny and investigation. WRE will have more on
this in upcoming issues.
The
following is excerpted from a story in the current issue (now
mailing) which offers the inside scoop on appraisal red
flags. It is submitted by Brad Davis, Director of
Valuations at Morgan Stanley.
No
Hits, 11 Errors
According to Brad Davis, the following are the most common appraisal
errors that impact loan salability. Common mistakes to avoid.
* Comps Out of
the Neighborhood
* Fair or Poor Property Condition
* Dated Comparable Sales
* High REO Concentration Markets
* Health and Safety Problems
* Functional or External Obsolescence Not Mentioned by Appraiser
* All
* Subject Sales History Not Properly Reconciled by the Appraiser
* Age of Subject Not Similar to Age of Comps
*
* Comps out of the Neighborhood
"Live
and Learn" is excerpted from the new issue of Working RE,
now mailing.
(Read more www.workingre.com/workingre/toc.pdf)
Please send
your comments or advertising inquiries to: David
Brauner, Editor. (dbrauner@workingre.com)
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