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”