How do lenders deal with houses with un-permitted additions

[svelte]

The builder recorded our prior home as a 5BR with the county while it was actually only a 4BR. They did the same thing with every frickin house of the same model.

None of us original owners had any problem at all when we sold.

That may not be true if there is a serious square footage discrepancy (something we did not have).

[Anonymous]

[quote=HLS][…]My preferred appraiser tells me what a house is worth […][/quote]

But any appraiser can do that. So why do you have a preferred appraiser? What is it about him/her that you prefer?

The only possible quality consideration in an appraisal would be turnaround time. Aside from this factor, if two licensed appraisers are available on a given day, one should always choose the one with the lower price. (And I’m guessing that there are plenty of appraisers available these days…)

If one chooses the same appraiser every time regardless of price, the implied promise of repeat business is essentially providing an incentive for the appraiser to come up with the “right” number. (And of course they can figure out what the “right” number is even without anyone telling them.)

The entire trade of appraisal is designed to be consistent and objective. That’s why there are standards, and that’s why there is licensing. Because of the complexities of real estate, no two appraisals will come out the same, but the system is designed to minimize the differences and remove individual subjectivity. In any case, differences in the outcome should never be influenced by who is paying for the appraisal.

The ideal appraisal process would involve only a set of formulas with no human involved. As the original post in this thread illustrates, this degree of objectivity is not feasible for many real estate appraisals, and there will always be a need for expertly trained appraisers. But for for many homes today there is typically little more involved than a quick observation and a computer program. This efficiency and transparency should be lowering costs for the end consumer, but for some reason, appraisals for tract homes still cost $300+ when they only involve 10 minutes of observation less than 15 minutes of data entry.

Appraisers and many other real estate professionals do not want more transparency and efficiency because they will lose the premium income that they derive from their relationships. However, these relationships only benefit the middlemen, not the end consumer or the economy.

[Apologies for hijacking the thread.]

[Anonymous]

[quote=HLS][…]My preferred appraiser tells me what a house is worth […][/quote]

But any appraiser can do that. So why do you have a preferred appraiser? What is it about him/her that you prefer?

The only possible quality consideration in an appraisal would be turnaround time. Aside from this factor, if two licensed appraisers are available on a given day, one should always choose the one with the lower price. (And I’m guessing that there are plenty of appraisers available these days…)

If one chooses the same appraiser every time regardless of price, the implied promise of repeat business is essentially providing an incentive for the appraiser to come up with the “right” number. (And of course they can figure out what the “right” number is even without anyone telling them.)

The entire trade of appraisal is designed to be consistent and objective. That’s why there are standards, and that’s why there is licensing. Because of the complexities of real estate, no two appraisals will come out the same, but the system is designed to minimize the differences and remove individual subjectivity. In any case, differences in the outcome should never be influenced by who is paying for the appraisal.

The ideal appraisal process would involve only a set of formulas with no human involved. As the original post in this thread illustrates, this degree of objectivity is not feasible for many real estate appraisals, and there will always be a need for expertly trained appraisers. But for for many homes today there is typically little more involved than a quick observation and a computer program. This efficiency and transparency should be lowering costs for the end consumer, but for some reason, appraisals for tract homes still cost $300+ when they only involve 10 minutes of observation less than 15 minutes of data entry.

Appraisers and many other real estate professionals do not want more transparency and efficiency because they will lose the premium income that they derive from their relationships. However, these relationships only benefit the middlemen, not the end consumer or the economy.

[Apologies for hijacking the thread.]

[Anonymous]

[quote=HLS][…]My preferred appraiser tells me what a house is worth […][/quote]

But any appraiser can do that. So why do you have a preferred appraiser? What is it about him/her that you prefer?

The only possible quality consideration in an appraisal would be turnaround time. Aside from this factor, if two licensed appraisers are available on a given day, one should always choose the one with the lower price. (And I’m guessing that there are plenty of appraisers available these days…)

If one chooses the same appraiser every time regardless of price, the implied promise of repeat business is essentially providing an incentive for the appraiser to come up with the “right” number. (And of course they can figure out what the “right” number is even without anyone telling them.)

The entire trade of appraisal is designed to be consistent and objective. That’s why there are standards, and that’s why there is licensing. Because of the complexities of real estate, no two appraisals will come out the same, but the system is designed to minimize the differences and remove individual subjectivity. In any case, differences in the outcome should never be influenced by who is paying for the appraisal.

The ideal appraisal process would involve only a set of formulas with no human involved. As the original post in this thread illustrates, this degree of objectivity is not feasible for many real estate appraisals, and there will always be a need for expertly trained appraisers. But for for many homes today there is typically little more involved than a quick observation and a computer program. This efficiency and transparency should be lowering costs for the end consumer, but for some reason, appraisals for tract homes still cost $300+ when they only involve 10 minutes of observation less than 15 minutes of data entry.

Appraisers and many other real estate professionals do not want more transparency and efficiency because they will lose the premium income that they derive from their relationships. However, these relationships only benefit the middlemen, not the end consumer or the economy.

[Apologies for hijacking the thread.]

[Anonymous]

[quote=HLS][…]My preferred appraiser tells me what a house is worth […][/quote]

But any appraiser can do that. So why do you have a preferred appraiser? What is it about him/her that you prefer?

The only possible quality consideration in an appraisal would be turnaround time. Aside from this factor, if two licensed appraisers are available on a given day, one should always choose the one with the lower price. (And I’m guessing that there are plenty of appraisers available these days…)

If one chooses the same appraiser every time regardless of price, the implied promise of repeat business is essentially providing an incentive for the appraiser to come up with the “right” number. (And of course they can figure out what the “right” number is even without anyone telling them.)

The entire trade of appraisal is designed to be consistent and objective. That’s why there are standards, and that’s why there is licensing. Because of the complexities of real estate, no two appraisals will come out the same, but the system is designed to minimize the differences and remove individual subjectivity. In any case, differences in the outcome should never be influenced by who is paying for the appraisal.

The ideal appraisal process would involve only a set of formulas with no human involved. As the original post in this thread illustrates, this degree of objectivity is not feasible for many real estate appraisals, and there will always be a need for expertly trained appraisers. But for for many homes today there is typically little more involved than a quick observation and a computer program. This efficiency and transparency should be lowering costs for the end consumer, but for some reason, appraisals for tract homes still cost $300+ when they only involve 10 minutes of observation less than 15 minutes of data entry.

Appraisers and many other real estate professionals do not want more transparency and efficiency because they will lose the premium income that they derive from their relationships. However, these relationships only benefit the middlemen, not the end consumer or the economy.

[Apologies for hijacking the thread.]

[Anonymous]

[quote=HLS][…]My preferred appraiser tells me what a house is worth […][/quote]

But any appraiser can do that. So why do you have a preferred appraiser? What is it about him/her that you prefer?

The only possible quality consideration in an appraisal would be turnaround time. Aside from this factor, if two licensed appraisers are available on a given day, one should always choose the one with the lower price. (And I’m guessing that there are plenty of appraisers available these days…)

If one chooses the same appraiser every time regardless of price, the implied promise of repeat business is essentially providing an incentive for the appraiser to come up with the “right” number. (And of course they can figure out what the “right” number is even without anyone telling them.)

The entire trade of appraisal is designed to be consistent and objective. That’s why there are standards, and that’s why there is licensing. Because of the complexities of real estate, no two appraisals will come out the same, but the system is designed to minimize the differences and remove individual subjectivity. In any case, differences in the outcome should never be influenced by who is paying for the appraisal.

The ideal appraisal process would involve only a set of formulas with no human involved. As the original post in this thread illustrates, this degree of objectivity is not feasible for many real estate appraisals, and there will always be a need for expertly trained appraisers. But for for many homes today there is typically little more involved than a quick observation and a computer program. This efficiency and transparency should be lowering costs for the end consumer, but for some reason, appraisals for tract homes still cost $300+ when they only involve 10 minutes of observation less than 15 minutes of data entry.

Appraisers and many other real estate professionals do not want more transparency and efficiency because they will lose the premium income that they derive from their relationships. However, these relationships only benefit the middlemen, not the end consumer or the economy.

[Apologies for hijacking the thread.]

[drboom]

(more hijacking, sorry. FWIW, it seems that the appraiser isn’t supposed to include the unpermitted additions in the appraisal, but their duties beyond that seem to vary.)

[quote=HLS]The information that many of you believe is simply ignorance about appraisers.

My preferred appraiser tells me what a house is worth, I don’t tell him. He doesn’t have targets to meet or lose my business.[/quote]

So far, so good.

[quote]If it isn’t a purchase, he doesn’t know what the loan amount is.[/quote]

I hope this is a typo or misstatement. If not, why should an appraiser know anything about the loan amount? If you can’t see the obvious problem here, then I don’t know what to tell you.

[quote]I am one of his best clients and get great service and priority for borrowers.[/quote]

I don’t understand this one, either. Why should the appraiser care about “priority for borrowers”? He’s there to give a professional, unbiased opinion of what the property is worth.

[quote]Any appraisal is the opinion of the appraiser, it isn’t an exact science, but should be close when there are model matches.[/quote]

Yeah, those “opinions” really worked out well for buyers in the 2002-2007 period, didn’t they? The fat origination fees were pretty sweet for the lenders and brokers, though.

[quote]Business relationships aren’t built on cronyism. They are built on service and other factors.[/quote]

One of those “other factors” has been a complete disregard for industry standards. Same thing happened in loan origination with underwriting, so it’s not like they were the only ones.

[quote]Your income could be threatened in your business if YOUR customer was told that they can no longer do business with you.
You need to go to a third party and they will provide you with what you need by a party of their choosing, and the provider will be getting 50% of what they previously received for doing the exact same work.[/quote]

If you’ve been around a while, you know that the late ’80s brought a lot of changes to the appraisal business as a result of abuses related to the S&L bust. Professional appraisers mostly stuck it out and changed with the times. There’s no reason to believe this will be any different.

[quote]Some of you just don’t get it. I don’t wish that it happens to you. It will ruin the income/careers of many good people who enjoy what they do.[/quote]

I’ve been there, and it seems like no fun at the time. The good news is that there’s a whole wide world of things to do for a living, and without some kind of kick it’s likely you’ll never try anything else.

[quote]This is bordering on a dictatorship/socialism.
It’s going to get worse…. HLS[/quote]

Yes, “it” is getting worse … but not because the appraisal industry is yet again getting some restrictions placed on it because of its widespread failure to do its job ethically.

[drboom]

(more hijacking, sorry. FWIW, it seems that the appraiser isn’t supposed to include the unpermitted additions in the appraisal, but their duties beyond that seem to vary.)

[quote=HLS]The information that many of you believe is simply ignorance about appraisers.

My preferred appraiser tells me what a house is worth, I don’t tell him. He doesn’t have targets to meet or lose my business.[/quote]

So far, so good.

[quote]If it isn’t a purchase, he doesn’t know what the loan amount is.[/quote]

I hope this is a typo or misstatement. If not, why should an appraiser know anything about the loan amount? If you can’t see the obvious problem here, then I don’t know what to tell you.

[quote]I am one of his best clients and get great service and priority for borrowers.[/quote]

I don’t understand this one, either. Why should the appraiser care about “priority for borrowers”? He’s there to give a professional, unbiased opinion of what the property is worth.

[quote]Any appraisal is the opinion of the appraiser, it isn’t an exact science, but should be close when there are model matches.[/quote]

Yeah, those “opinions” really worked out well for buyers in the 2002-2007 period, didn’t they? The fat origination fees were pretty sweet for the lenders and brokers, though.

[quote]Business relationships aren’t built on cronyism. They are built on service and other factors.[/quote]

One of those “other factors” has been a complete disregard for industry standards. Same thing happened in loan origination with underwriting, so it’s not like they were the only ones.

[quote]Your income could be threatened in your business if YOUR customer was told that they can no longer do business with you.
You need to go to a third party and they will provide you with what you need by a party of their choosing, and the provider will be getting 50% of what they previously received for doing the exact same work.[/quote]

If you’ve been around a while, you know that the late ’80s brought a lot of changes to the appraisal business as a result of abuses related to the S&L bust. Professional appraisers mostly stuck it out and changed with the times. There’s no reason to believe this will be any different.

[quote]Some of you just don’t get it. I don’t wish that it happens to you. It will ruin the income/careers of many good people who enjoy what they do.[/quote]

I’ve been there, and it seems like no fun at the time. The good news is that there’s a whole wide world of things to do for a living, and without some kind of kick it’s likely you’ll never try anything else.

[quote]This is bordering on a dictatorship/socialism.
It’s going to get worse…. HLS[/quote]

Yes, “it” is getting worse … but not because the appraisal industry is yet again getting some restrictions placed on it because of its widespread failure to do its job ethically.

[drboom]

(more hijacking, sorry. FWIW, it seems that the appraiser isn’t supposed to include the unpermitted additions in the appraisal, but their duties beyond that seem to vary.)

[quote=HLS]The information that many of you believe is simply ignorance about appraisers.

My preferred appraiser tells me what a house is worth, I don’t tell him. He doesn’t have targets to meet or lose my business.[/quote]

So far, so good.

[quote]If it isn’t a purchase, he doesn’t know what the loan amount is.[/quote]

I hope this is a typo or misstatement. If not, why should an appraiser know anything about the loan amount? If you can’t see the obvious problem here, then I don’t know what to tell you.

[quote]I am one of his best clients and get great service and priority for borrowers.[/quote]

I don’t understand this one, either. Why should the appraiser care about “priority for borrowers”? He’s there to give a professional, unbiased opinion of what the property is worth.

[quote]Any appraisal is the opinion of the appraiser, it isn’t an exact science, but should be close when there are model matches.[/quote]

Yeah, those “opinions” really worked out well for buyers in the 2002-2007 period, didn’t they? The fat origination fees were pretty sweet for the lenders and brokers, though.

[quote]Business relationships aren’t built on cronyism. They are built on service and other factors.[/quote]

One of those “other factors” has been a complete disregard for industry standards. Same thing happened in loan origination with underwriting, so it’s not like they were the only ones.

[quote]Your income could be threatened in your business if YOUR customer was told that they can no longer do business with you.
You need to go to a third party and they will provide you with what you need by a party of their choosing, and the provider will be getting 50% of what they previously received for doing the exact same work.[/quote]

If you’ve been around a while, you know that the late ’80s brought a lot of changes to the appraisal business as a result of abuses related to the S&L bust. Professional appraisers mostly stuck it out and changed with the times. There’s no reason to believe this will be any different.

[quote]Some of you just don’t get it. I don’t wish that it happens to you. It will ruin the income/careers of many good people who enjoy what they do.[/quote]

I’ve been there, and it seems like no fun at the time. The good news is that there’s a whole wide world of things to do for a living, and without some kind of kick it’s likely you’ll never try anything else.

[quote]This is bordering on a dictatorship/socialism.
It’s going to get worse…. HLS[/quote]

Yes, “it” is getting worse … but not because the appraisal industry is yet again getting some restrictions placed on it because of its widespread failure to do its job ethically.

[drboom]

(more hijacking, sorry. FWIW, it seems that the appraiser isn’t supposed to include the unpermitted additions in the appraisal, but their duties beyond that seem to vary.)

[quote=HLS]The information that many of you believe is simply ignorance about appraisers.

My preferred appraiser tells me what a house is worth, I don’t tell him. He doesn’t have targets to meet or lose my business.[/quote]

So far, so good.

[quote]If it isn’t a purchase, he doesn’t know what the loan amount is.[/quote]

I hope this is a typo or misstatement. If not, why should an appraiser know anything about the loan amount? If you can’t see the obvious problem here, then I don’t know what to tell you.

[quote]I am one of his best clients and get great service and priority for borrowers.[/quote]

I don’t understand this one, either. Why should the appraiser care about “priority for borrowers”? He’s there to give a professional, unbiased opinion of what the property is worth.

[quote]Any appraisal is the opinion of the appraiser, it isn’t an exact science, but should be close when there are model matches.[/quote]

Yeah, those “opinions” really worked out well for buyers in the 2002-2007 period, didn’t they? The fat origination fees were pretty sweet for the lenders and brokers, though.

[quote]Business relationships aren’t built on cronyism. They are built on service and other factors.[/quote]

One of those “other factors” has been a complete disregard for industry standards. Same thing happened in loan origination with underwriting, so it’s not like they were the only ones.

[quote]Your income could be threatened in your business if YOUR customer was told that they can no longer do business with you.
You need to go to a third party and they will provide you with what you need by a party of their choosing, and the provider will be getting 50% of what they previously received for doing the exact same work.[/quote]

If you’ve been around a while, you know that the late ’80s brought a lot of changes to the appraisal business as a result of abuses related to the S&L bust. Professional appraisers mostly stuck it out and changed with the times. There’s no reason to believe this will be any different.

[quote]Some of you just don’t get it. I don’t wish that it happens to you. It will ruin the income/careers of many good people who enjoy what they do.[/quote]

I’ve been there, and it seems like no fun at the time. The good news is that there’s a whole wide world of things to do for a living, and without some kind of kick it’s likely you’ll never try anything else.

[quote]This is bordering on a dictatorship/socialism.
It’s going to get worse…. HLS[/quote]

Yes, “it” is getting worse … but not because the appraisal industry is yet again getting some restrictions placed on it because of its widespread failure to do its job ethically.

[drboom]

(more hijacking, sorry. FWIW, it seems that the appraiser isn’t supposed to include the unpermitted additions in the appraisal, but their duties beyond that seem to vary.)

[quote=HLS]The information that many of you believe is simply ignorance about appraisers.

My preferred appraiser tells me what a house is worth, I don’t tell him. He doesn’t have targets to meet or lose my business.[/quote]

So far, so good.

[quote]If it isn’t a purchase, he doesn’t know what the loan amount is.[/quote]

I hope this is a typo or misstatement. If not, why should an appraiser know anything about the loan amount? If you can’t see the obvious problem here, then I don’t know what to tell you.

[quote]I am one of his best clients and get great service and priority for borrowers.[/quote]

I don’t understand this one, either. Why should the appraiser care about “priority for borrowers”? He’s there to give a professional, unbiased opinion of what the property is worth.

[quote]Any appraisal is the opinion of the appraiser, it isn’t an exact science, but should be close when there are model matches.[/quote]

Yeah, those “opinions” really worked out well for buyers in the 2002-2007 period, didn’t they? The fat origination fees were pretty sweet for the lenders and brokers, though.

[quote]Business relationships aren’t built on cronyism. They are built on service and other factors.[/quote]

One of those “other factors” has been a complete disregard for industry standards. Same thing happened in loan origination with underwriting, so it’s not like they were the only ones.

[quote]Your income could be threatened in your business if YOUR customer was told that they can no longer do business with you.
You need to go to a third party and they will provide you with what you need by a party of their choosing, and the provider will be getting 50% of what they previously received for doing the exact same work.[/quote]

If you’ve been around a while, you know that the late ’80s brought a lot of changes to the appraisal business as a result of abuses related to the S&L bust. Professional appraisers mostly stuck it out and changed with the times. There’s no reason to believe this will be any different.

[quote]Some of you just don’t get it. I don’t wish that it happens to you. It will ruin the income/careers of many good people who enjoy what they do.[/quote]

I’ve been there, and it seems like no fun at the time. The good news is that there’s a whole wide world of things to do for a living, and without some kind of kick it’s likely you’ll never try anything else.

[quote]This is bordering on a dictatorship/socialism.
It’s going to get worse…. HLS[/quote]

Yes, “it” is getting worse … but not because the appraisal industry is yet again getting some restrictions placed on it because of its widespread failure to do its job ethically.

[Anonymous]

And that’s exactly what happened. Of course, it gets worse for sellers or those who are trying to refinance, in that most of the appraisers who are out there now are newbies and many times, incompetent; most of the good ones can’t make a living and have had to change professions.

I am going through a reverse mortgage process. The appraiser who had only received certification3 months earlier, valued my new, permitted enclosed patio as just that- and not as additional living space (which is appropriate)- it is same level, fully-insulated with energy-star windows and door, and has a built-in energy star heater a/c (but forced air heating as the primary source. As a result it brought down the appraised value (if correctly averaged) over $85k- $100k+ too little, and that’s pretty hefty considering the distressed comps were going for around $300k).

She also left out that I am on the back end of a cul-de-sac with a 12 200 sq ft flat lot, that I had the built-in a/c (but mentions a small window a/c in kitchen), and that my brand-new roof is 40 yr, “3D” (no, you won’t need glasses to view it). She concentrated on “glitz”- cosmetic upgrades, while giving me virtually no credit for brand-new 100% waterproof, commercial-grade golden-oak flooring (Manning ICore 2- no longer available), newer 200amp 240v elec panel (our tract has 100amp), newly remodeled bath with dual-flush commode, new Marmoleum (not vinyl), new professionally-painted 0 voc paint inside, new outside paint as well, and brand-new outgoing main line.

I have a gorgeous shiny-black cooktop and oven, but not good enough because not stainless steel, and beautiful wood countetops weren’t granite, have 2-vehicle RV access (no credit), and a Yorkie named Frazzle.

The addition had the same flooring with vertical blinds as well. The a/c in addition actually cools almost my entire house (largest in tract, and with addition is now over 1220 sq ft).

I rebutted, with full info- but didn’t know at the time that my living space was “official”; MetLife went along with appraiser’s NON- response (NOTHING answered except my stating that another comp selling for much more was not used, while 4 distressed properties were.

MetLife should be completely avoided, believe me; broker told me they gave one of her clients a ZERO value- (she wound up going elsewhere and got client $350k). She said she’d never seen MetLIfe honor a rebuttal, no matter how strong the case. The appraiser didn’t call the listing agent re the house I’d wanted evaluated- she just drove by and pasted the blurb on the MLS.She claimed that house was .62 miles from mine where she had used only those .50 in her appraisal- even though she knew this was in the SAME tract, built SAME year and was SAME model as the REO comp she’d used. When I stated that that house was less than a block from a freeway, she countered that it was not an issue, because the house was (all of) 6 houses from the wall that separates the block from the freeway! She stated that this house was “far superior” to mine- but since she hadn’t talked to the listing agent, she had been unaware that the upgrades were mainly cheap and cosmetic, that when the bedrooms were reduced to two (so tiny that it was felt necessary to turn 2 into one narrow, long one, the occupant decided they needed another bedroom and virtually eliminated the livingroom by adding a wall that produced a 7′ x 10′ “bedroom”-without a window! Since now the livingroom was reduced to being a small dining area, they were using an all-acrylic sunroom as the livingroom (NO glass,, no wall area, no insulation). In actuality, my house would bring would bring far more.

She didn’t bother to contact any of the listing agents to confirm what I’d said about the respective comps; had she, she would have found out that the one she had given me only $40k more for in credit (“22k adjustment”) had been GUTTED- no cabinet, appliances- nothing- and the backyard after 20′ went down a very steep slope maybe 25′ to the street behind it.

Another comp backed up to a wash- its almost 16k sq ft lot (which included the wash, itself, and the bank on the opposite side) had only about 6k’ worth of usable land; my 12,200 sq ft flat lot instead of appreciating- was devalued by $7000!

There is a lot more- but running out of steam, here.

You can imagine how “concerned” the appraisal management company will be- it’s Experian- fat lot of angst it would cost them to lose this tiny brokerage. They don’t exactly have a sterling reputation for their choices in appraisers.

Whereas good appraisals made a difference to appraisers before the new rules- not anymore. The ethical, experienced ones have pretty-much disappeared. Nobody seemed to look at the negative consequences this inane law might bring.

I hear new changes are planned, but nothing firm, and from what I have gleaned, they will do little to make things better.

I know there were a lot of excellent, ethical appraisers out there- now the ones left are for the most part doing more than their share to ruin the market. The banks aren’t much of a help, for sure. Those appraisers who have tried to give a decent amount credit have all-too-often been shot down- required to re-think what they believe is fair- and then had to bring the appraisal way down. The FHA underwriter at the bank can override the appraiser and make the amount lower, but from what I understand, they cannot go higher or they will lose the FHA insurance.

BTW, the appraiser’s company is BizApps, located in West Hills, SFV ; Leticia Lopez is “it”. No supervisor, no real recourse. I am going to file a complaint with the licensing bureau; she ignored my points and did not compensate for a single one of her errors.

Wheee…

[Anonymous]

And that’s exactly what happened. Of course, it gets worse for sellers or those who are trying to refinance, in that most of the appraisers who are out there now are newbies and many times, incompetent; most of the good ones can’t make a living and have had to change professions.

I am going through a reverse mortgage process. The appraiser who had only received certification3 months earlier, valued my new, permitted enclosed patio as just that- and not as additional living space (which is appropriate)- it is same level, fully-insulated with energy-star windows and door, and has a built-in energy star heater a/c (but forced air heating as the primary source. As a result it brought down the appraised value (if correctly averaged) over $85k- $100k+ too little, and that’s pretty hefty considering the distressed comps were going for around $300k).

She also left out that I am on the back end of a cul-de-sac with a 12 200 sq ft flat lot, that I had the built-in a/c (but mentions a small window a/c in kitchen), and that my brand-new roof is 40 yr, “3D” (no, you won’t need glasses to view it). She concentrated on “glitz”- cosmetic upgrades, while giving me virtually no credit for brand-new 100% waterproof, commercial-grade golden-oak flooring (Manning ICore 2- no longer available), newer 200amp 240v elec panel (our tract has 100amp), newly remodeled bath with dual-flush commode, new Marmoleum (not vinyl), new professionally-painted 0 voc paint inside, new outside paint as well, and brand-new outgoing main line.

I have a gorgeous shiny-black cooktop and oven, but not good enough because not stainless steel, and beautiful wood countetops weren’t granite, have 2-vehicle RV access (no credit), and a Yorkie named Frazzle.

The addition had the same flooring with vertical blinds as well. The a/c in addition actually cools almost my entire house (largest in tract, and with addition is now over 1220 sq ft).

I rebutted, with full info- but didn’t know at the time that my living space was “official”; MetLife went along with appraiser’s NON- response (NOTHING answered except my stating that another comp selling for much more was not used, while 4 distressed properties were.

MetLife should be completely avoided, believe me; broker told me they gave one of her clients a ZERO value- (she wound up going elsewhere and got client $350k). She said she’d never seen MetLIfe honor a rebuttal, no matter how strong the case. The appraiser didn’t call the listing agent re the house I’d wanted evaluated- she just drove by and pasted the blurb on the MLS.She claimed that house was .62 miles from mine where she had used only those .50 in her appraisal- even though she knew this was in the SAME tract, built SAME year and was SAME model as the REO comp she’d used. When I stated that that house was less than a block from a freeway, she countered that it was not an issue, because the house was (all of) 6 houses from the wall that separates the block from the freeway! She stated that this house was “far superior” to mine- but since she hadn’t talked to the listing agent, she had been unaware that the upgrades were mainly cheap and cosmetic, that when the bedrooms were reduced to two (so tiny that it was felt necessary to turn 2 into one narrow, long one, the occupant decided they needed another bedroom and virtually eliminated the livingroom by adding a wall that produced a 7′ x 10′ “bedroom”-without a window! Since now the livingroom was reduced to being a small dining area, they were using an all-acrylic sunroom as the livingroom (NO glass,, no wall area, no insulation). In actuality, my house would bring would bring far more.

She didn’t bother to contact any of the listing agents to confirm what I’d said about the respective comps; had she, she would have found out that the one she had given me only $40k more for in credit (“22k adjustment”) had been GUTTED- no cabinet, appliances- nothing- and the backyard after 20′ went down a very steep slope maybe 25′ to the street behind it.

Another comp backed up to a wash- its almost 16k sq ft lot (which included the wash, itself, and the bank on the opposite side) had only about 6k’ worth of usable land; my 12,200 sq ft flat lot instead of appreciating- was devalued by $7000!

There is a lot more- but running out of steam, here.

You can imagine how “concerned” the appraisal management company will be- it’s Experian- fat lot of angst it would cost them to lose this tiny brokerage. They don’t exactly have a sterling reputation for their choices in appraisers.

Whereas good appraisals made a difference to appraisers before the new rules- not anymore. The ethical, experienced ones have pretty-much disappeared. Nobody seemed to look at the negative consequences this inane law might bring.

I hear new changes are planned, but nothing firm, and from what I have gleaned, they will do little to make things better.

I know there were a lot of excellent, ethical appraisers out there- now the ones left are for the most part doing more than their share to ruin the market. The banks aren’t much of a help, for sure. Those appraisers who have tried to give a decent amount credit have all-too-often been shot down- required to re-think what they believe is fair- and then had to bring the appraisal way down. The FHA underwriter at the bank can override the appraiser and make the amount lower, but from what I understand, they cannot go higher or they will lose the FHA insurance.

BTW, the appraiser’s company is BizApps, located in West Hills, SFV ; Leticia Lopez is “it”. No supervisor, no real recourse. I am going to file a complaint with the licensing bureau; she ignored my points and did not compensate for a single one of her errors.

Wheee…

[Anonymous]

And that’s exactly what happened. Of course, it gets worse for sellers or those who are trying to refinance, in that most of the appraisers who are out there now are newbies and many times, incompetent; most of the good ones can’t make a living and have had to change professions.

I am going through a reverse mortgage process. The appraiser who had only received certification3 months earlier, valued my new, permitted enclosed patio as just that- and not as additional living space (which is appropriate)- it is same level, fully-insulated with energy-star windows and door, and has a built-in energy star heater a/c (but forced air heating as the primary source. As a result it brought down the appraised value (if correctly averaged) over $85k- $100k+ too little, and that’s pretty hefty considering the distressed comps were going for around $300k).

She also left out that I am on the back end of a cul-de-sac with a 12 200 sq ft flat lot, that I had the built-in a/c (but mentions a small window a/c in kitchen), and that my brand-new roof is 40 yr, “3D” (no, you won’t need glasses to view it). She concentrated on “glitz”- cosmetic upgrades, while giving me virtually no credit for brand-new 100% waterproof, commercial-grade golden-oak flooring (Manning ICore 2- no longer available), newer 200amp 240v elec panel (our tract has 100amp), newly remodeled bath with dual-flush commode, new Marmoleum (not vinyl), new professionally-painted 0 voc paint inside, new outside paint as well, and brand-new outgoing main line.

I have a gorgeous shiny-black cooktop and oven, but not good enough because not stainless steel, and beautiful wood countetops weren’t granite, have 2-vehicle RV access (no credit), and a Yorkie named Frazzle.

The addition had the same flooring with vertical blinds as well. The a/c in addition actually cools almost my entire house (largest in tract, and with addition is now over 1220 sq ft).

I rebutted, with full info- but didn’t know at the time that my living space was “official”; MetLife went along with appraiser’s NON- response (NOTHING answered except my stating that another comp selling for much more was not used, while 4 distressed properties were.

MetLife should be completely avoided, believe me; broker told me they gave one of her clients a ZERO value- (she wound up going elsewhere and got client $350k). She said she’d never seen MetLIfe honor a rebuttal, no matter how strong the case. The appraiser didn’t call the listing agent re the house I’d wanted evaluated- she just drove by and pasted the blurb on the MLS.She claimed that house was .62 miles from mine where she had used only those .50 in her appraisal- even though she knew this was in the SAME tract, built SAME year and was SAME model as the REO comp she’d used. When I stated that that house was less than a block from a freeway, she countered that it was not an issue, because the house was (all of) 6 houses from the wall that separates the block from the freeway! She stated that this house was “far superior” to mine- but since she hadn’t talked to the listing agent, she had been unaware that the upgrades were mainly cheap and cosmetic, that when the bedrooms were reduced to two (so tiny that it was felt necessary to turn 2 into one narrow, long one, the occupant decided they needed another bedroom and virtually eliminated the livingroom by adding a wall that produced a 7′ x 10′ “bedroom”-without a window! Since now the livingroom was reduced to being a small dining area, they were using an all-acrylic sunroom as the livingroom (NO glass,, no wall area, no insulation). In actuality, my house would bring would bring far more.

She didn’t bother to contact any of the listing agents to confirm what I’d said about the respective comps; had she, she would have found out that the one she had given me only $40k more for in credit (“22k adjustment”) had been GUTTED- no cabinet, appliances- nothing- and the backyard after 20′ went down a very steep slope maybe 25′ to the street behind it.

Another comp backed up to a wash- its almost 16k sq ft lot (which included the wash, itself, and the bank on the opposite side) had only about 6k’ worth of usable land; my 12,200 sq ft flat lot instead of appreciating- was devalued by $7000!

There is a lot more- but running out of steam, here.

You can imagine how “concerned” the appraisal management company will be- it’s Experian- fat lot of angst it would cost them to lose this tiny brokerage. They don’t exactly have a sterling reputation for their choices in appraisers.

Whereas good appraisals made a difference to appraisers before the new rules- not anymore. The ethical, experienced ones have pretty-much disappeared. Nobody seemed to look at the negative consequences this inane law might bring.

I hear new changes are planned, but nothing firm, and from what I have gleaned, they will do little to make things better.

I know there were a lot of excellent, ethical appraisers out there- now the ones left are for the most part doing more than their share to ruin the market. The banks aren’t much of a help, for sure. Those appraisers who have tried to give a decent amount credit have all-too-often been shot down- required to re-think what they believe is fair- and then had to bring the appraisal way down. The FHA underwriter at the bank can override the appraiser and make the amount lower, but from what I understand, they cannot go higher or they will lose the FHA insurance.

BTW, the appraiser’s company is BizApps, located in West Hills, SFV ; Leticia Lopez is “it”. No supervisor, no real recourse. I am going to file a complaint with the licensing bureau; she ignored my points and did not compensate for a single one of her errors.

Wheee…

[Anonymous]

And that’s exactly what happened. Of course, it gets worse for sellers or those who are trying to refinance, in that most of the appraisers who are out there now are newbies and many times, incompetent; most of the good ones can’t make a living and have had to change professions.

I am going through a reverse mortgage process. The appraiser who had only received certification3 months earlier, valued my new, permitted enclosed patio as just that- and not as additional living space (which is appropriate)- it is same level, fully-insulated with energy-star windows and door, and has a built-in energy star heater a/c (but forced air heating as the primary source. As a result it brought down the appraised value (if correctly averaged) over $85k- $100k+ too little, and that’s pretty hefty considering the distressed comps were going for around $300k).

She also left out that I am on the back end of a cul-de-sac with a 12 200 sq ft flat lot, that I had the built-in a/c (but mentions a small window a/c in kitchen), and that my brand-new roof is 40 yr, “3D” (no, you won’t need glasses to view it). She concentrated on “glitz”- cosmetic upgrades, while giving me virtually no credit for brand-new 100% waterproof, commercial-grade golden-oak flooring (Manning ICore 2- no longer available), newer 200amp 240v elec panel (our tract has 100amp), newly remodeled bath with dual-flush commode, new Marmoleum (not vinyl), new professionally-painted 0 voc paint inside, new outside paint as well, and brand-new outgoing main line.

I have a gorgeous shiny-black cooktop and oven, but not good enough because not stainless steel, and beautiful wood countetops weren’t granite, have 2-vehicle RV access (no credit), and a Yorkie named Frazzle.

The addition had the same flooring with vertical blinds as well. The a/c in addition actually cools almost my entire house (largest in tract, and with addition is now over 1220 sq ft).

I rebutted, with full info- but didn’t know at the time that my living space was “official”; MetLife went along with appraiser’s NON- response (NOTHING answered except my stating that another comp selling for much more was not used, while 4 distressed properties were.

MetLife should be completely avoided, believe me; broker told me they gave one of her clients a ZERO value- (she wound up going elsewhere and got client $350k). She said she’d never seen MetLIfe honor a rebuttal, no matter how strong the case. The appraiser didn’t call the listing agent re the house I’d wanted evaluated- she just drove by and pasted the blurb on the MLS.She claimed that house was .62 miles from mine where she had used only those .50 in her appraisal- even though she knew this was in the SAME tract, built SAME year and was SAME model as the REO comp she’d used. When I stated that that house was less than a block from a freeway, she countered that it was not an issue, because the house was (all of) 6 houses from the wall that separates the block from the freeway! She stated that this house was “far superior” to mine- but since she hadn’t talked to the listing agent, she had been unaware that the upgrades were mainly cheap and cosmetic, that when the bedrooms were reduced to two (so tiny that it was felt necessary to turn 2 into one narrow, long one, the occupant decided they needed another bedroom and virtually eliminated the livingroom by adding a wall that produced a 7′ x 10′ “bedroom”-without a window! Since now the livingroom was reduced to being a small dining area, they were using an all-acrylic sunroom as the livingroom (NO glass,, no wall area, no insulation). In actuality, my house would bring would bring far more.

She didn’t bother to contact any of the listing agents to confirm what I’d said about the respective comps; had she, she would have found out that the one she had given me only $40k more for in credit (“22k adjustment”) had been GUTTED- no cabinet, appliances- nothing- and the backyard after 20′ went down a very steep slope maybe 25′ to the street behind it.

Another comp backed up to a wash- its almost 16k sq ft lot (which included the wash, itself, and the bank on the opposite side) had only about 6k’ worth of usable land; my 12,200 sq ft flat lot instead of appreciating- was devalued by $7000!

There is a lot more- but running out of steam, here.

You can imagine how “concerned” the appraisal management company will be- it’s Experian- fat lot of angst it would cost them to lose this tiny brokerage. They don’t exactly have a sterling reputation for their choices in appraisers.

Whereas good appraisals made a difference to appraisers before the new rules- not anymore. The ethical, experienced ones have pretty-much disappeared. Nobody seemed to look at the negative consequences this inane law might bring.

I hear new changes are planned, but nothing firm, and from what I have gleaned, they will do little to make things better.

I know there were a lot of excellent, ethical appraisers out there- now the ones left are for the most part doing more than their share to ruin the market. The banks aren’t much of a help, for sure. Those appraisers who have tried to give a decent amount credit have all-too-often been shot down- required to re-think what they believe is fair- and then had to bring the appraisal way down. The FHA underwriter at the bank can override the appraiser and make the amount lower, but from what I understand, they cannot go higher or they will lose the FHA insurance.

BTW, the appraiser’s company is BizApps, located in West Hills, SFV ; Leticia Lopez is “it”. No supervisor, no real recourse. I am going to file a complaint with the licensing bureau; she ignored my points and did not compensate for a single one of her errors.

Wheee…

[Author]

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