Lies, Damn Lies and More Lies
These so-called accurate and ‘reliable’ data sources are factually wrong…
I was reading the Scope of Work contained in a sample Hybrid Appraisal, one of now dozens being promoted by multiple AMC’s, lenders, software developers, etc., which seem to be sweeping the secondary lending arena these days.
Identified and verified subject characteristics from a reliable data source such as MLS, County/City records, GIS, and online data sources. – Researched comparable sales and listings from reliable data source such as MLS, County/City records, etc.”
“Reliable” is the ugly lie and supposed truth promoted by very naive or unaware people who write this junk, and then disseminate inaccurate statements like this.
Other unsuspecting people within and surrounding the appraising profession, and lenders, then jump on the band wagon believing that ‘data sources’ are the ultimate authority – and the appraiser who wades through copious amounts of this stuff to arrive at a decision is not to be believed or trusted.
In fact, many times these so-called accurate and ‘reliable’ data sources are factually wrong. Quality appraisers know this to be true. But it’s hard to convince the Kool-aide drinkers that junk data, is in fact, junk.
I’m aware of an appraiser currently going through a ‘state regulator report investigation’ based on a frivolous real estate agent complaint. *** The “investigator” in question is not a licensed appraiser, never has been, and apparently never has been involved as a real estate sales person… based on research we’ve done. This “investigator” appears to have a “data truth bias” and just forced the appraiser to give an explicit response to why the report commentary says some data used for research is factually inaccurate and the appraiser has to use judgement and multiple sources research to decide what to use. The “investigator’s” question was this:
“What is your margin of error for lack of reliability with any data you collect?”
In other words… prove a Negative. Or in the perspective of the “investigator”… I don’t believe you have more faith in the inaccurate data sources.
Some data = lies. Work hard to get to the truth.
*** In our state, any ‘complaint’ turned into the investigations department is considered to have merit up front, regardless of final determination. In Oregon, I believe, the submission is considered to be an ALLEGATION until all details are investigated. When and if technical violations are found, it then becomes a formal Complaint. That is a fairer system, because an ALLEGATION does not have to be reported to the appraiser’s E&O provider. In our state, any time a ‘complaint letter’ is given to the appraiser by the investigations department, it must be reported to the E&O provider. Then this situation has to be reported to the E&O provider for FIVE YEARS.