ALL the physical characteristics were wrong (ok, only 90% – they appear to have gotten the lot size right). The CMA comps were all from 200 sf to 250 sf larger (roughly 10% to 15% larger); Unit mix was mostly higher. Most probable range per RPR was $497k to $650k. A lot of inferred weight near $550k. My personal belief is that the lowest end of the indicated range is about 10%+- too high. (Even though the price per sf was skewed low due to over size comparables being used).

Most comps provided were three to four units. Only one was a similar 2 on a lot (duplex). I did not use the adjustments function at all. It would be interesting to see what my local agents would have put in. From the data provided I could easily show support for a $550 to $600k price. Several comps included are properties I know to be high flips. In my neighborhood I find it hard to believe they didn’t include ‘creative’ financing and inducements – but I could be wrong.

The BIGGEST omission in the entire report are permit issues for permits pulled dating back to 1951; updated in 2001 and arbitrarily VOIDED sometime after we bought the property in ’09 and verified permits (we think voiding was 2011 but cant verify). MAJOR impact on marketability. Amount? Who knows. IF City keeps playing hardball it could render top story and major additions to front and rear uninhabitable. Of course before that happens, they AND Wells Fargo (REO Seller) get sued.

Point is that RPR CANNOT identify these kinds of issues. Worse case scenario is property would become unmarketable. I think most would agree that would be a pretty big deal for most lenders. BTW, its a HUD/FHA loan. Appraiser did a GOOD job. No recourse there. He verified permits and correction notices individually by permit numbers – two years before city deleted that data from their old website. We had refused to close escrow til that was resolved. I personally cross checked the verifications and confirmed them.

If there were no permit issues, then the low end of range comp property backing up to the 710 freeway would be the most probable value indicator but even that would be a tough call. I still think it’s high.

After 3 years of fighting AMCs and HVCC on my own I chose to follow the best advice that’s ever been written on appraisal slavery and extortion. I strongly recommend posting this quote on your mirror appraisers and reading it daily.

Frederick Douglass may as well have been speaking about the appraisal profession when he made this comment. The statement is as true today for appraisers as it was over a it was for slavery over a century ago.

Unfortunately appraisers see this when they look in a mirror Wayne: A spineless weakling.

How about this EXPO foolishness? Are you one that pays to go hear what a “GURU” at an AMC has to say? Really….some of us need to purchase a mirror and take a close look at the problem! Just my two cents….

Us of course the ones with the money (E&O)!

Thanks Hamp, like your articles.

Just curious, as most of the crash was blamed appraisers.