Appraisal Scope

Today, Andi was unlucky enough to answer the phone to a disgruntled borrower. We had completed a field review of an appraisal completed on his property in which Jan sadly had to disagree with a significant portion of the original appraisal, something no appraiser likes to do to a colleague. The original appraisal had almost no details on the subject property and a very brief and totally macro level market analysis. It also misrepresented the zoning, etc… In the end Jan reduced the value by $25,000 from the original appraisal. The borrower was incensed and the AMC, which tells us we cannot discuss appraisals with anyone but them, went ahead and gave the borrower our number, knowing full well that we are contractually not allowed to discuss the particulars with him. (Our frustrations with AMCs is a sub plot however so let me move on).

In his long tirade, he finally stated that Jan was just the kind of terrible appraiser responsible for our current state in which he could have sold this property a year ago for $700,000 and now finds out its current appraised value is $575,000. Andi is generally cordial in even the most stressful of situations, but at this comment, her tone changed and she seared back, “you should not speak of things which you clearly do not understand.”

And I thought, that is exactly why our blog has been excruciatingly silent even though there are so many monumental events surrounding us. I have been in this industry for ten years and the more I try to understand our current plight, the less I understand, and thus I have been afraid to speak, or in this case blog. In fact I had just told Jan yesterday that I was bloggless (is that a word?) because the only thing I could say with any level of certainty is “things are so f****d up right now.” But since it lacked a level of professionalism, I had decided not to surround an entire blog around the theme.

Doing the exact opposite of Andi’s very sound advice, I thought I would center my next blog around speaking about all of the things I currently do not understand. Stay tuned…


Posted by Janette (Jan) Miller on October 17th, 2008 2:13 PMPost a Comment (0)

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