Real Estate Appraiser Tips! Home Appraisers: Appraisal Red Flags To Avoid!

http://www.realestateappraisertips.info/ – Real Estate Appraiser Tips! Home Appraisers: Appraisal Red Flags To Avoid!

 

This was posted on Ann O’Rourke’s Appraisal Today email this morning.

“Appraisal Abuse Red Flags for bank examiners when reviewing appraisals
 
– No appraisal or property evaluation in file.

– Mortgage broker or borrowers that always use the same appraiser.

– Appraiser bills association for more than one appraisal when there is only one in the file.

– Unusual appraisal fees (high or low).

– No history of property or prior sales records.

– Market data located away from subject property.

Unsupported or unrealistic assumptions relating to capitalization rates, zoning change, utility availability, absorption, or rent level.

– Valued for highest and best use, which is different from current use.

– Appraisal method using retail value of one unit in condo complex multiplied by the number of units equals collateral value.

– Use of superlatives in appraisals.

– Appraisal made for borrower.

– Appraisals performed or dated after loan.

– Close relationship between builder, broker, appraiser, lender and/or borrower.

– Overvalued (inflated) or high property value.

Office of Thrift Supervision May 2010 Examination Handbook 360.13

Click here to download the report”

http://www.ots.treas.gov/_files/74874.pdf

Real Estate Appraiser Tips! Home Appraisers: Appraisal Red Flags To Avoid!

About Bill Cobb, Appraiser

The Baton Rouge Residential Appraisal Blog is an information source provided by local Home Appraiser, Bill Cobb, and Accurate Valuations Group. Bill has 24 years experience as a Baton Rouge Residential Home Appraiser and updates his local network of sites weekly with reports, videos and audio reviews of local housing market conditions! 225-293-1500