Accurate Group’s Appraiser Selection Practices Expose Troubling Industry Tactics

by AppraisersBlogs · Published November 25, 2024 · Updated November 25, 2024

Accurate Group Appraiser Selection Practices Expose Troubling Industry Tactics The situation surrounding Accurate Group’s appraiser selection practices sheds troubling light on the concerning tactics that many Appraisal Management Companies (AMCs) employ in their pursuit of the lowest possible fees. The inadvertent disclosure of an internal file from Accurate Group has provided a rare window into the dubious inner workings of this AMC, revealing a clear pattern of unethical practices that prioritize cost-cutting over fairness, transparency, and the selection of the most qualified and proximate appraisers.

At the heart of the issue is Accurate Group’s apparent manipulation of the appraisal assignment process to favor the lowest bidders, rather than the appraisers best suited for each job. Despite the company’s claims that the “appraiser assigned is the next closest in proximity to the subject property,” the data tells a very different story. In fact, the file shows that there were six appraisers who were geographically closer to the property than the one who ultimately received the assignment. This directly contradicts Accurate Group’s stated criteria, suggesting that their appraiser selection is driven more by cost-cutting than by a genuine effort to choose the most appropriate professional for the task at hand.

Further examination of the appraiser panel details raises even more red flags. Four qualified appraisers who were available and proximate to the subject property had never received any assignments from Accurate Group, with their “last completed” dates remaining conspicuously blank. Meanwhile, the few appraisers who did receive assignments had completion dates ranging from as far back as 2020 all the way up to 2023, with only 3 having completed anything in 2024. This lopsided allocation of work, despite the presence of numerous qualified professionals on the panel, suggests that Accurate Group may be engaging in the type of “bid shopping” and appraiser favoritism that was uncovered in the FastApp AMC court case – funneling assignments to a small, compliant group of appraisers in order to ensure property values align with the preferences of their lender clients.

This troubling revelation about Accurate Group’s practices sheds light on the broader issues plaguing the AMC industry, where cost-cutting and conflicts of interest too often take precedence over the integrity of the appraisal process. The actions of this company, and likely others like it, undermine the independence and objectivity that are essential to ensuring accurate, unbiased property valuations. By prioritizing the lowest fees over the selection of the most qualified and proximate appraisers, these AMCs are putting the entire real estate ecosystem at risk, eroding public trust and potentially inflating or deflating property values based on the self-serving interests of lenders and other stakeholders. This incident serves as a stark reminder of the need for greater transparency, accountability, and ethical practices within the AMC industry as a whole.